Ecommerce tax calculator for Pakistan
Since July 2025 the courier and the payment gateway take tax out of every online sale before you are paid. Enter a month's sales to see how much they withhold, at the rates in force for tax year 2027.
Off the Active Taxpayers List, the income-tax part doubles: PKR 378,000 more a year.
At about PKR 19,800,000 a year you are under PKR 200 million: the income tax withheld is a final tax unless you opt out when filing your return.
The rates, and where they come from
| How the customer paid | Who withholds | Income tax, on the ATL | Income tax, not on the ATL | Sales tax |
|---|---|---|---|---|
| Cash on delivery | The courier | 2% | 4% | 2% |
| Card, bank transfer or wallet | The payment intermediary (gateway or bank) | 1% | 2% | 2% |
All of these are charged on the gross amount the customer paid, not on your profit. The income tax is imposed by section 6A of the Income Tax Ordinance and withheld under section 153(2A), at the rates in the First Schedule. The non-ATL rates are double, under the Tenth Schedule. The sales tax is withheld under section 3 of the Sales Tax Act, at the 2% in serial 8 of its Eleventh Schedule.
Checked 18 October 2026 against FBR's own consolidated Income Tax Ordinance and Sales Tax Act, and its withholding rate card, all as amended up to 30 June 2026 (Finance Act 2026). Rates change with each year's budget, normally in July. This page will be rechecked then.
This is a calculator, not tax advice. How the amounts are treated in your return depends on your circumstances, so confirm with your tax adviser.
Final tax or adjustable: what changed in 2026
When this tax started in July 2025, the income tax withheld was a final tax on that income. The Finance Act 2026 added subsection (3) to section 6A. If your turnover in a tax year is above PKR 200 million, the tax withheld is now adjustable against your annual tax liability, not final. At PKR 200 million or below it stays final, but from tax year 2027 you may opt out of the final-tax regime when you file your return. The calculator says which side of that line a year at your monthly figures falls on.
For sales tax, the Act makes the 2% withheld the final discharge of the tax liability for two kinds of seller: cottage industry, and retailers other than tier-1 retailers. Anyone else should ask an adviser how it is adjusted in their sales tax return.
Two things that catch sellers out
Registration is no longer optional
Under section 181 of the Ordinance, an online marketplace or courier delivering digitally ordered goods may not let a seller use its service unless the seller is registered for income tax. If your courier asks for an NTN, this is why.
The ATL costs more than it looks
The income-tax part doubles off the Active Taxpayers List: 4% instead of 2% of every COD rupee collected. On a thin COD margin, those two extra points can be a large slice of the profit. Switch the ATL answer in the calculator to see what it means a year at your volume.
What this calculator doesn't cover
Sales tax on your courier's own service charges is billed on the freight invoice, not withheld from your sales. It counts in the RTO cost calculator and the COD profit calculator. Your annual return, provincial taxes and any other income are outside it too.
Kaarobar deducts the withholding on delivered COD inside net profit, at the rates you set (2% + 2% to start with), and reports it by period for your accountant. See GST and withholding tax in Kaarobar.
Track withheld tax on real orders — install freeQuestions merchants actually ask
- How much tax is deducted on cash-on-delivery sales in Pakistan?
- For a seller on the Active Taxpayers List, the courier withholds 2% income tax and 2% sales tax, which is 4% of the COD it collects. Off the ATL the income tax is 4%, so 6% in total. The rates are for tax year 2027 (from 1 July 2026).
- What is the tax on prepaid online orders?
- The payment gateway or bank withholds 1% income tax (2% off the ATL) and 2% sales tax on the amount paid.
- Is the 2% COD tax a final tax?
- Up to PKR 200 million turnover in a tax year, the income tax withheld is a final tax, though from tax year 2027 you may opt out of the final regime when you file your return. Above PKR 200 million it is adjustable against your annual liability, a change made by the Finance Act 2026.
- Online business par kitna tax katta hai?
- Agar aap Active Taxpayers List par hain to COD par courier 2% income tax aur 2% sales tax kaat leta hai. Card ya bank se aane wali payment par gateway 1% income tax aur 2% sales tax kaatta hai. ATL par na hon to income tax double ho jata hai. Upar wala calculator aap ki apni sales par yeh hisaab kar deta hai.