What is estimated
Federal section 233 withholding on advertising-agent, qualifying life-insurance-agent and other commission payments.
Pakistan Brokerage and Commission Tax Calculator
Section 233 Commission Withholding
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Reference range
How this result is calculated
A clear calculation path based on your inputs.
Inputs usedReview the information used for this result.
Full calculation and sourcesReview the statutory bridge, assumptions, and version.
Versioned calculationFormula v2.0.0
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.
Interpretation
is the modeled amount for the selected path.
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Public verification recordFormula v2.0.0
- Review scope
- Pakistan Tax Year 2027 / FY 2026-27 Calculation And Content Review
- Review team
- CalculatorGeek Tax Review Team
- Verified
- 2026-09-20
- Next source review
- 2027-06-30
- Automated fixtures
- 8 cases
Review method
Primary-law mapping, FBR rate-card comparison, boundary fixtures, definition validation, and responsive browser QA.
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.
Primary sources
Published calculation checks
| 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} |
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.
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.