Pakistan: Withholding tax and filing requirements for digitally ordered goods

The tax is 1% for digital payments and 2% for cash on delivery.

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November 13, 2025

Pakistan's Federal Board of Revenue in August 2025 issued Notification S.R.O. 1429(I)/2025 introducing a withholding tax on digitally ordered goods delivered domestically. The tax is 1% for digital payments and 2% for cash on delivery.

Payment intermediaries and couriers must withhold and deposit the tax, submitting monthly statements by the 10th of the following month.

The government suspended the digital presence proceeds tax (DPPT) with retroactive effect from July 1, 2025. Accordingly, foreign vendors (including advertisers) with a significant digital presence in Pakistan are no longer subject to DPPT.


For more information, contact a KPMG tax professional in Pakistan:

Kamran Butt | kamranbutt@kpmg.com

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