International Withholding Tax Rates
Dividends paid to non-residents are subject to withholding tax of 10 percent. For dividends declared/distributed by a purchaser of a power project privatized by WAPDA (Water and Power Development Authority) or a company setup for power generation, the withholding tax rate on dividends is 7.5 percent.
Royalties and fees for technical service paid to non-residents are subject to withholding tax of 15 percent.
Interest payments to non-residents (that have no permanent establishment in Pakistan) are subject to withholding tax of 10 percent.
Other payments to non-residents, for which a withholding tax rate is not specified in the Income Tax Ordinance, 2001 (the Ordinance), is subject to withholding tax of 20 percent. The withholding tax rates may be reduced under the terms of applicable tax treaties.