0 votes
in Withholding Tax (WHT) by (60 points)

Aa,

Since visiting faculty in universities get paid once a semester on a per-hour basis contract, we have to pay 15% tax. I came across a case law by educators from University of Multan who wrote to Federal Ombudsman when their university tried to deduct 15% tax. Their reasoning was that visiting faculty is basically low-wage workers since most of them do not get paid more than 600,000 per year. Regular employees who do not get paid 600,000 per annum have to pay no tax, whereas visiting faculty, despite being paid little and only once a semester has to pay a whopping 15% tax. 

Can you please look into the case law attached and confirm its validity?

Case law- visiting faculty Uni of Multan - federal ombudsman

Many thanks.

1 Answer

0 votes
by (25.1k points)
Yes low wage workers are exempt from tax.
It shall be practied by the institutions that they start deduction of tax after aggregate payment exceed the income threshhold i.e 600,000.
by (60 points)
Thank you so much for the reply. However, the I know a University that still deducts this tax from contract-based visiting faculty, (visiting faculty is NOT considered as regular employees, they are considered service providers). Visiting faculty pay per semester is around 1 lac -  1 lac 50 thousand. Is the university allowed to do it?

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