165 Annual Filing Services in Pakistan – Reliable Compliance with Waystax

Annual withholding tax compliance is one of the most critical legal responsibilities for businesses, employers, banks, and withholding agents in Pakistan.

Under Section 165 of the Income Tax Ordinance, 2001, every person who deducts or collects tax is legally bound to file withholding tax statements with the FBR.

At Waystax, we provide end-to-end 165 annual filing services, ensuring accurate and strict compliance with FBR rules and timely submission.

What Is Section 165 Annual Filing?

Section 165 Annual Filing is a legal requirement under the Income Tax Ordinance, 2001 for all withholding agents in Pakistan.

Any person or business that deducts or collects tax at the source must submit an annual withholding tax statement to the Federal Board of Revenue (FBR).

Section 165 requires withholding agents to submit detailed statements of:

• Taxes deducted
• Taxes collected
• Taxes adjusted or not deducted (with legal justification)

Accurate and timely filing under Section 165 helps maintain filer status and protects businesses from penalties, notices, and compliance issues.

Who Is Required to File Section 165 Withholding Tax Statements?

Under Section 165, anyone who deducts or collects tax must file withholding tax statements. This includes:

• Employers paying salaries (Section 149) – see our Payroll Management Services
• Businesses making payments for goods, services, or contracts (Sections 153 & 153A) – see Sales Tax Registration & Filing
• Banks & financial institutions paying interest, dividends, or issuing banking instruments (Sections 150, 231A/B)
• Property owners paying rent (Section 155) – check Property Tax Services
• Importers & exporters (Sections 148 & 154) – see PSEB Registration
• Utility & telecom providers (Sections 234–236B)
• Payments to non-residents (Sections 152 & 153A)

At Waystax, we help you determine if you are required to file and ensure your 165 annual filing service is accurate and fully compliant.

Documents Required for 165 Annual Filing

Withholding Tax Statements – Filing Modes Allowed by FBR

FBR allows withholding tax statements to be prepared and submitted through the following modes:

1. Online Data Entry

• Real-time data validation
• Instant error notifications
• Best for small to medium datasets

2. Excel-Based File Upload

• Ideal for large datasets
• Requires strict compliance with FBR’s prescribed format
• Errors appear only after upload

3. Mixed Mode (Online + Excel)

• Flexible option for complex filings

At Waystax, we assess your data volume and recommend the most efficient filing method to reduce rejection risks and save time.

Excel-Based Withholding Tax Statement – Key Validation Rules

When filing through Excel, even a minor formatting error can cause rejection.

Below is a simplified explanation of the most critical validation checks handled by Waystax experts:

Taxpayer Identification Rules

• NTN (N) – 9 digits with check digit
• CNIC (C) – Mandatory dashes (e.g., 42301-1234567-1)
• FTN (F) – For companies
• Passport (P) – Only for non-resident individuals
• Bank Account, Phone, Reference Numbers – As applicable

Mandatory Data Fields

• Taxpayer Name & Address
• Payment Nature (as per FBR table)
• Payment Section Code
• Payment Date (YYYYMMDD)
• Payment Amount (Rounded PKR only)

Tax Deduction Rules

• Y (Yes) – Tax Amount must be > 0
• N (No) – Exemption details required
• A (Adjustment) – Negative values allowed

Deposit & CPR Details

• Deposit Date and CPR Number are mandatory if tax is deposited
• Incorrect CPR entries often trigger FBR notices, something Waystax carefully audits before submission

Why Choose Waystax for 165 Annual Filing Services?

Choosing the wrong consultant can cost you penalties and filer suspension. Here’s why businesses trust Waystax:

1. FBR-Compliant Filing

We strictly follow the latest FBR data validation checks and legal requirements.

2. Error-Free Statements

Our experts review data before upload, preventing common Excel and online filing mistakes.

3. Complete Tax Ecosystem Support

We handle related services like SECP Company Registration, PSEB Registration, Income Tax Return Filing, and Filer / Active Status.

4. Affordable & Transparent Pricing

Waystax offers competitive pricing with real human support, not automated confusion.

FAQs – 165 Annual Filing Services

Ensure Accurate 165 Annual Filing with Waystax

Compliance with Section 165 is not just a legal obligation; it’s essential for maintaining your FBR filer status. It helps you in avoiding penalties and ensuring smooth business operations in Pakistan.

Filing withholding tax statements accurately requires attention to detail, proper documentation, and adherence to FBR validation rules.

At Waystax, we make this process simple, reliable, and error-free. From assessing who is required to file and validating data to submitting directly to FBR. Our expert team handles everything for you.

Whether you are a small business, large corporation, or non-resident entity. Waystax ensures that your 165 annual filing service is timely, accurate, and fully compliant.