Ahmed Masum & Co.

The National Board of Revenue (NBR) has issued the Withholding Tax Rules, 2026 under the Income Tax Act, 2023 through a gazette notification. The Rules were published in the official gazette on 5 July 2026 and have come into effect from 1 July 2026.

The Withholding Tax Rules, 2026 establish the procedural framework for the deduction and collection of tax at source under the Income Tax Act, 2023. The Rules prescribe the applicable procedures, forms, certificates, statements, and other compliance requirements for withholding tax, providing greater clarity on the obligations of withholding entities and taxpayers.

The Rules are expected to facilitate uniform implementation of the withholding tax provisions and strengthen compliance by outlining the administrative processes to be followed by businesses, employers, financial institutions, government authorities, and other withholding entities.

All stakeholders, including taxpayers, withholding authorities, businesses, employers, financial institutions, and tax practitioners, are encouraged to review the Rules to familiarize themselves with the updated procedural requirements and ensure timely compliance with the applicable legal provisions.