What is estimated
Federal withholding under section 155 on annual gross rent of immovable property.
Pakistan Rental Income Withholding Tax Calculator
Section 155 Rent 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
Payer identity is tested first. Regular rent is annualized, one-tenth of a qualifying section 16 amount is added, then the recipient schedule and ATL treatment are applied.
Important boundary
Deductions, co-ownership, exemptions, provincial property tax and final return treatment are not calculated.
Interpretation
is the modeled amount for the selected path.
.
Confirm the result against the actual return and current official guidance.
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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
- The result is a payer-side section 155 deduction estimate, not the recipient's final property-income liability.
- The user must correctly classify refundable/adjustable deposits; only a qualifying non-adjustable section 16 amount belongs in that field.
- Deductions, co-ownership, exemptions, provincial property tax and final return treatment are not calculated.
- 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 |
|---|---|---|
| Individual upper second band | {"withholding_tax":15000} | |
| Company ATL | {"withholding_tax":150000} | |
| Company non-ATL | {"withholding_tax":300000} |
On this page
What this calculator covers
Federal withholding under section 155 on gross rent of immovable property. The calculator first checks whether the payer is a prescribed person, then applies the Tax Year 2027 recipient schedule.
Period: Tax Year 2027 / FY 2026-27.
Selling the property instead of renting it? Use the section 236C property sale tax calculator, then calculate final gain separately with the property capital gains tax calculator.
How the result is calculated
Government, companies, NPOs, diplomatic missions, and specified institutions follow the prescribed-payer route. An individual or AOP payer enters that route only when annual gross rent paid to the recipient is at least PKR 1.5 million. Regular rent is annualized and one-tenth of a qualifying non-adjustable tenant amount is included under section 16.
Worked check: an ATL individual recipient with PKR 1.5 million annual gross rent from a prescribed payer produces PKR 105,000 withholding. The same recipient outside the ATL produces PKR 210,000.
How to use the result
Use the annual total for reconciliation and the per-payment amount for cash-flow planning. A result stating that the payer is not prescribed means no section 155 deduction obligation is modeled; it does not mean the recipient has no final income-tax liability.
Important boundaries
Deductions, co-ownership, exemptions, provincial property tax and final return treatment are not calculated.
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 the official sources listed below. Rates, prescribed-payer logic, section 16 inclusion, calculation, and content were reviewed on September 20, 2026. Recheck when the governing law changes or before Tax Year 2028.
Frequently asked questions
Does every tenant deduct section 155 tax?
No. The payer must be a prescribed person. An individual or AOP payer enters the prescribed-person list only when annual gross rent paid to the recipient is at least PKR 1.5 million.
What belongs in annual gross rent?
Gross rent can include amounts for the property, furniture, fixtures, amenities, and services, plus the applicable one-tenth inclusion for a qualifying non-adjustable tenant amount under section 16.
Is a refundable security deposit included?
Do not put a refundable or adjustable deposit in the section 16 field. That field is only for a qualifying non-adjustable tenant amount whose characterization has been established.
Is this the landlord's final income tax?
No. It estimates payer-side withholding. The recipient's final property-income liability can differ after the complete return, deductions, exemptions, credits, and other income are considered.