💳 WHT on Digital Payments

For transactions completed using bank transfers, credit/debit cards, mobile wallets, or other digital methods, the bank acts as the withholding agent.

• Filer: 1% deducted by the bank
• Non-Filer: 2% deducted by the bank

Example: A registered seller receiving Rs. 100,000 via bank transfer will be taxed Rs. 1,000 (filer) or Rs. 2,000 (non-filer).

💵 WHT on Cash on Delivery (COD)

When payments are collected in cash through courier services, the courier company becomes the withholding agent.

• Filer: 2% deducted by the courier
• Non-Filer: 4% deducted by the courier

This includes sellers using TCS, Leopards, M&P, Rider, and similar local delivery partners.

✅ Covered Transactions

• Local e-commerce websites selling physical products
• Digital service providers (e.g. training, design, development for local clients)
• WhatsApp or Instagram-based sellers accepting bank payments
• Businesses using COD services for deliveries within Pakistan

❌ Excluded Transactions

• Freelance income from platforms like Fiverr, Upwork, etc.
• Export of IT/ITES services or physical products
• Foreign remittances through Payoneer or PayPal

This update is a key part of the evolving Ecommerce Tax in Pakistan 2025 landscape and aims to formalize online sales revenue tracking through local payment systems.

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