Types of Taxes Imposed on Real Estate Property in Pakistan
WHAT IS A PROPERTY TAX?
A property tax is a levy imposed by the government on real estate. The tax is based on the value of the property, and the amount varies from country to country. In Pakistan, the property tax imposed on both residential and commercial properties.
DIFFERENT TYPES OF PROPERTY TAXES IN PAKISTAN
There are four main types of taxes imposed on real estate property in Pakistan:
1. Capital Gains Tax (CGT)
The Capital Gains Tax (CGT) on property in Pakistan 2021-2022 a federal tax that must paid by the seller. Capital gains tax imposed when the seller makes profits on the sale of a capital asset, so the profit (capital gain) taxed. In accordance with the Finance Act 2017, the capital gains tax will only imposed if the property sold within three years of purchase. According to FBR’s valuation table, these gains will taxed at 10% during the first year, 7.5% during the second year, and 5% during the third year. Property held for more than three years will not be subject to CGT.
2. Capital Value Tax (CVT) & Stamp Duty
3. Withholding Tax (WHT) paid by both buyers and sellers
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