Pakistan Brokerage and Commission Tax Calculator

Updated Sep 2026 Used 1 times

Use the Pakistan Brokerage and Commission Tax Calculator to calculate and interpret section 233 withholding.

Person paying or retaining commission

Section 233 applies to the listed governments and companies, and to an AOP or individual meeting the turnover test.

Principal turnover in a preceding tax year

An AOP or individual is in the modeled withholding-agent definition at PKR 100m or more.

Commission category

The calculator tests the life-insurance annual commission: strictly below PKR 500,000 uses 8%; PKR 500,000 or more uses 12%.

Recipient ATL status

Non-ATL rates are 100% higher in the TY2027 rate card.

Electronic or print media amount excluding commission (A)

The section 233 commission base is imputed as A multiplied by 15/85. This is separate from section 153 withholding on the media payment.

Life-insurance commission for the full financial year

The reduced 8% rate applies only when annual commission is below PKR 500,000; exactly PKR 500,000 uses 12%.

Commission in this payment

Enter the gross brokerage or commission for this payment before section 233 withholding.

How the agent receives the commission

Where commission is retained, section 233 requires the principal to collect the tax from the agent.

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Your result

Section 233 Commission Withholding

Enter your values, then calculate to see a verified result.

Inputs usedReview the information used for this result.

Full calculation and sourcesReview the statutory bridge, assumptions, and version.

Versioned calculationFormula v2.0.0

What is estimated

Federal section 233 withholding on advertising-agent, qualifying life-insurance-agent and other commission payments.

Method

Principal eligibility is tested first; category and annual-threshold facts set the rate, and advertising uses A multiplied by 15/85 as the commission base.

Important boundary

Advertising media withholding under section 153 and the recipient's final annual treatment are separate from this section 233 estimate.

Enter the inputsAdd the values and choose the options required for this calculation.Required fields

Run the calculationValidate the inputs and apply the versioned method.Formula v2.0.0

Review the resultRead the answer together with its context and important boundary.Result + assumptions

Interpretation

is the modeled amount for the selected path.

Confirm the result against the actual return and current official guidance.

Use this result

Pakistan Securities Capital Gains Tax CalculatorContinue with the closest related federal tax calculation.Pakistan Business Tax Calculator 2026-27Keep this liability separate and auditable.Pakistan Company Income Tax Calculator 2026-27Keep this liability separate and auditable.

Pakistan Brokerage and Commission Tax Calculator: purpose and method

Calculates section 233 withholding, gross commission, base rate, and applied rate from person paying or retaining commission, principal turnover in a preceding tax year, commission category, and recipient ATL status with visible method, validation, precision, and limitations.

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Method and test recordFormula v2.0.0

Recorded scope: Pakistan Tax Year 2027 / FY 2026-27 calculation and content review
Publisher: CalculatorGeek
Reviewed by: CalculatorGeek Editorial Team
Recorded review date: 2026-09-20
Next source review: 2027-06-30
Definition fixtures: 8 configured scenarios
Published examples: 2 shown below

Recorded method

Primary-law mapping, FBR rate-card comparison, boundary fixtures, definition validation, and responsive browser QA.

These records describe the published model and reference tests. A test-case count is not a certification of every possible input or an independent specialist review. Editorial policy

Known limitations

This does not calculate the separate section 153 withholding on an advertising media payment or determine whether section 233 withholding is minimum, final or adjustable for the recipient's full facts.
This is an educational estimator, not an FBR assessment, tax return, legal opinion or professional tax advice.
Recheck the governing law, rates, and official guidance when the tax year or taxpayer facts change.

Method sources

Latest model update

2026-10-12 - Replaced unavailable guide links with relevant calculator workflows, normalized internal destinations, and aligned contextual discovery with the shared Finance and Insurance content system without changing calculation logic.

Reference inputs and expected results

These published examples are separate from the configured definition fixtures and any additional automated assertions. Expected values use the stated output units; invalid inputs are intended to be rejected.

Case	Inputs	Expected result
Advertising ATL using A x 15/85		{"commission_tax_base":150000,"withholding_tax":15000,"applied_rate":10}
Life insurance at PKR 500,000 annual threshold		{"withholding_tax":12000,"applied_rate":12,"annual_threshold_met":0}

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On this page

What this calculator covers

Federal section 233 withholding on advertising-agent, life-insurance-agent and other brokerage or commission payments by an eligible principal.

Period: Tax Year 2027 / FY 2026-27.

Continue with the Pakistan Securities Capital Gains Tax Calculator. Continue with the closest related federal tax calculation.

How the result is calculated

The calculator first tests whether the principal is within section 233. Other commission uses 12%; life-insurance commission uses 8% only when annual commission is strictly below PKR 500,000; advertising commission uses 10% on an imputed commission base equal to the media amount A multiplied by 15/85. Non-ATL rates are doubled.

Worked check: A PKR 850,000 electronic or print media amount excluding commission implies PKR 150,000 commission and PKR 15,000 ATL withholding.

Continue with the Pakistan Business Tax Calculator 2026-27. Keep this liability separate and auditable.

How to use the result

Use the output as transaction withholding and reconcile the certificate in the annual return.

Important boundaries

The advertising result covers section 233 on the imputed agent commission; it does not calculate the separate section 153 withholding on the electronic or print media payment. The same rate calculation applies where an agent retains commission, but the principal must collect the tax.

The calculator deliberately does not infer exemptions, undocumented facts, provincial liabilities, credits, minimum-tax interactions or professional conclusions that its inputs cannot establish.

Primary sources

Prepared from FBR's TY2027 withholding rate card, consolidated Income Tax Ordinance through 30 June 2026, and Finance Act 2026 materials. Source, calculation, content, and browser checks were completed on September 20, 2026. Recheck when the governing law changes or before Tax Year 2028.

Inputs, outputs and result meaning

Inputs

Person paying or retaining commission: Section 233 applies to the listed governments and companies, and to an AOP or individual meeting the turnover test. Available choices are Federal, Provincial or Local Government, or company, AOP or individual - PKR 100m turnover test, and Other principal.
Principal turnover in a preceding tax year: An AOP or individual is in the modeled withholding-agent definition at PKR 100m or more. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.
Commission category: The calculator tests the life-insurance annual commission: strictly below PKR 500,000 uses 8%; PKR 500,000 or more uses 12%. Available choices are Advertising agent, Life insurance agent, and Other brokerage or commission.
Recipient ATL status: Non-ATL rates are 100% higher in the TY2027 rate card. Available choices are Appears on ATL and Does not appear on ATL.
Electronic or print media amount excluding commission (A): The section 233 commission base is imputed as A multiplied by 15/85. This is separate from section 153 withholding on the media payment. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.
Life-insurance commission for the full financial year: The reduced 8% rate applies only when annual commission is below PKR 500,000; exactly PKR 500,000 uses 12%. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.
Commission in this payment: Enter the gross brokerage or commission for this payment before section 233 withholding. Supported units include Pakistani rupees (PKR). The field accepts large finite values; use a range meaningful for the real-world quantity.
How the agent receives the commission: Where commission is retained, section 233 requires the principal to collect the tax from the agent. Available choices are Principal pays commission to agent and Agent retains commission from collections.

Outputs

Section 233 withholding: This is the primary result. The visible value is displayed without decimal places.
Gross commission: The visible value is displayed without decimal places.
Base rate: It is displayed in %. The visible value uses up to 2 decimal places according to the output rule.
Applied rate: It is displayed in %. The visible value uses up to 2 decimal places according to the output rule.
Commission tax base: The visible value is displayed without decimal places.
Imputed advertising commission: The visible value is displayed without decimal places. It appears only when the selected mode supports this result.
Net commission after withholding: The visible value is displayed without decimal places.
Eligible withholding principal (1=yes): The visible value is displayed without decimal places.

The eligible principal applies 10%, 8% or 12% to the statutory commission base, doubled for non-ATL agents. Advertising commission is A multiplied by 15/85; the 8% life rate applies only below PKR 500,000 annual commission. Keep the result label, unit, selected mode, and stated limitations together when sharing the answer.

Frequently asked questions

How is advertising-agent commission calculated?

Enter the electronic or print media amount excluding commission as A. The modeled commission base is A multiplied by 15/85, and section 233 is applied to that base.

Does exactly PKR 500,000 annual life-insurance commission qualify for 8%?

No. The reduced rate applies only below PKR 500,000. Exactly PKR 500,000 uses the residual 12% ATL rate.

When is an individual or AOP an eligible principal?

In this model, an individual or AOP enters section 233 when turnover in a preceding tax year is at least PKR 100 million.

What if the agent retains commission?

The tax amount is calculated on the same commission base, but section 233 requires the principal to collect the tax from the agent.