A Withholding Tax Card, in accordance with the Income Tax Ordinance 2001, assists in identifying the precise rates of income tax to be withheld at source on various types of payments. These payments include salaries, dividends, interest, contracts, and other financial transactions. The card offers guidance on the amount of tax that should be deducted by the payer before disbursing the payment to the recipient, ensuring adherence to tax regulations.

A Withholding Tax Card is important because it provides clear guidance on the specific tax rates that must be withheld at the source for various types of payments to ensure compliance with updated income tax ordinance.

Payments subject to withholding tax can include salaries, dividends, interest, supply of goods, services, and execution of contracts, and other financial transactions as specified by tax laws.

Without going through the hundreds of pages and different sections of the Income Tax Ordinance, a common man can easily find the tax rates applicable to his area of interest or transaction.

You can also cross check these rates mentioned in income tax ordinance 2001 by visiting the following link:
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Yes, in Pakistan, withholding tax rates are changed from time to time through the issuance of various circulars, SROs, and notifications during the fiscal year, especially with the presentation of the annual budget in June each year. It's important to stay informed about any changes to ensure compliance.