Prize bond winnings in Pakistan are taxed at source. This page explains the two rates, how to work out what you will actually receive, and how becoming a filer changes the number.
The two rates
Withholding tax on prize bond winnings is deducted by the paying institution before the money reaches you:
| Your status | Withholding tax |
|---|---|
| Filer — your name is on the FBR Active Taxpayer List (ATL) | 15% |
| Non-filer — your name is not on the ATL | 35% |
The difference is 20 percentage points, which on a large prize is a very large amount of money.
Worked examples
| Prize | Filer receives (15%) | Non-filer receives (35%) | Difference |
|---|---|---|---|
| Rs. 1,000 (Rs. 100 bond, 3rd) | Rs. 850 | Rs. 650 | Rs. 200 |
| Rs. 9,300 (Rs. 750 bond, 3rd) | Rs. 7,905 | Rs. 6,045 | Rs. 1,860 |
| Rs. 1,500,000 (Rs. 750 bond, 1st) | Rs. 1,275,000 | Rs. 975,000 | Rs. 300,000 |
| Rs. 3,000,000 (Rs. 1,500 bond, 1st) | Rs. 2,550,000 | Rs. 1,950,000 | Rs. 600,000 |
| Rs. 80,000,000 (Rs. 40,000 Premium, 1st) | Rs. 68,000,000 | Rs. 52,000,000 | Rs. 16,000,000 |
Run your own number through the prize bond tax calculator for an exact figure.
How to check whether you are a filer
Being a "filer" simply means your name appears on the FBR Active Taxpayer List, which is updated regularly. You can check your status by sending your CNIC number to FBR's ATL SMS service, or by looking yourself up on the FBR website. If you have an NTN and file your annual return, you should be on the list.
Should you become a filer before claiming?
If you have won a large prize and you are not currently on the ATL, it is worth finding out how long it would take to get on it — the saving can be enormous. Speak to a tax practitioner: the right answer depends on your own circumstances, when the ATL is next updated, and how close you are to the end of the six-year claim window. Nothing on this page is tax advice.
Practical points
- Tax is deducted at source. You receive the net amount; you do not pay it separately later.
- Bring your NTN or ATL proof when you claim if you want the filer rate applied.
- Keep the deduction certificate you are given — it is your record of tax already paid.
- Premium bond prizes are credited to your registered bank account net of tax.
- Rates are set by law and can change in any Finance Act. We update this page when they do.