- Pakistan introduced a withholding tax on domestically delivered, digitally ordered goods: 1% for digital payments, 2% for cash on delivery.
- Payment intermediaries and couriers are responsible for withholding, depositing the tax, and submitting monthly statements.
- The digital presence proceeds tax (DPPT) was suspended retroactively from July 1, 2025.
- Foreign vendors with significant digital presence in Pakistan are no longer subject to DPPT.
Source: kpmg.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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