Service Withholding after Finance Act 2026: Professionals, Media and Port Services

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A software developer working independently should not be assigned a withholding rate solely because an invoice says “IT services”. The revised schedule explicitly mentions independently working software engineers and developers among professional services.

The revised categories

In Division III, paragraph (2), the specified services in sub-paragraph (i) move from 6% to 7%. Independent professional services under (ii), including doctors, lawyers, architects, accountants and independent software engineers or developers, carry 15%. Electronic and print media advertising under (iii) carries 1.5%. Terminal and port operating services provided by companies under (iv) carry 12%. Other services under (v) carry 14%.

These are base provisions

Check the payer's withholding obligation, the precise service, recipient status, applicable certificates and other schedule modifications. Export-of-services provisions are a separate classification question. The table does not authorize treating every payment to a technology business as an independent professional payment.

Illustration for an accounts team

Where a payment of Rs. 100,000 is correctly classified under the 15% category and no modification applies, the deduction is Rs. 15,000. Keep the contract, invoice and classification note with the deduction record. If a contract bundles different services, resolve its treatment before making payment rather than choosing the lowest headline rate.

Source and scope

Finance Act 2026, official FBR gazette, PDF pages 56-57. Text reviewed on 14 October 2026. This explains the enacted amendment; a notification-dependent procedure must be checked separately before use.