Tax on international card payments
When you pay abroad or online in foreign currency with a Pakistani card, the bank collects advance tax. Enter the amount to see it.
How it's calculated
- Advance tax = amount × 0.5%.
- The Finance Act 2026 cut this rate from 5% to 0.5%.
An example
Spending Rs. 100,000 abroad adds Rs. 500 of advance tax.
Frequently asked questions
Is it charged on payments in Pakistan in rupees?
No. It applies to payments made abroad or in foreign currency with an international card.
Can I adjust this tax?
Advance tax collected by your bank can generally be adjusted against your income tax when you file your return.
Does it apply to prepaid cards?
Yes. The rule covers international credit, debit and prepaid cards.
Key terms
- Advance tax
- Tax collected during the year that counts towards your final tax.
Up-to-date official data
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