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What is the interest withholding rate between Pakistan and United States?
Under the Pakistan-United States tax treaty, the withholding rate on interest is 30%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 30% rate compares to a median of 10% across Pakistan's 28 active treaty partners, and 10% across United States's 64 active partners.
Network Comparison
Pakistan
Rank 28 of 28 active treaties (lowest rate = #1)
Lower rates with: Canada (15%), United Kingdom (15%), Malaysia (15%)
United States
Rank 63 of 64 active treaties (lowest rate = #1)
Lower rates with: Tunisia (15%), Turkey (15%), Israel (17.5%)
Higher rates with: Trinidad and Tobago (30%)
Sources
- United States Treaty Reference(treaty text)
- IRS Table 1 (Withholding Rates)(rate table)
Data last reviewed: 2026-04-07
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.