Você está na página 1de 21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
NEW

PROPERTIES FORUM BLOG MAPS TRENDS INDEX PARTNERS

BLOG

NEWS

Buying

Construction

DevelopmentAuthority

General

HomeDecor

HousingSchemes

InvestmentTips

Leasing

News&Updates

PakistanRealEstate

Renting

Selling

Taxation

Tourism

Understanding Pakistans new real estate


taxes
August24,2016Buying,PakistanRealEstate,Taxation

SubscribeForDailyBlogAlert

EnterYourEmailAddress
Like

Tweet

Subscribe

RecentBlogPosts
Overviewofsocieties
featuringaffordable5marla
hous...
August25,2016

Howwasthefirsthalfof2016
forthepropertymarket...
August24,2016

TherecentamendmentstotheIncomeTaxOrdinance2001havecausedquitetheconfusionamong
real estate stakeholders, largely because it comes with its fair share of nuances and details that
arent fully clear to everyone at the moment. Any deals that are being carried out right now are
accompanied by affidavits stipulating the buyers and sellers responsibilities in the event of the
applicabletaxamountsbeingraisedinthenearfuture.

Howwasthefirsthalfof2016
forthepropertymarket...
August24,2016

Ifyou,too,havedelayedyourpropertytransactiondecisionbecauseofalackofunderstandingofthe
recent changes to the tax regime, we have put together some key information along with detailed
casestudiestomakesureyouunderstandexactlyhowthesetaxeswork.

UnderstandingPakistans
newrealestatetaxes...
August24,2016

First,hereisabriefoutlineoftheapplicabletaxes,soyoucankeepupwiththecalculationsthatwill
follow.

BlogArchives

BUYERS
CapitalValueTax(CVT)
Rate:2%ofRevisedDCRates
Jurisdiction:Provincial

2016
August(28)
July(27)

June(31)

StampDuty
Rate:3%ofRevisedDCRates
Jurisdiction:Provincial

May(49)

February(48)

April(48)
March(45)

AdvanceTax(adjustedinannualincometaxreturnsforfilers)
January(55)
http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

1/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

AdvanceTax(adjustedinannualincometaxreturnsforfilers)
Rate:2%(filers)or4%(nonfilers)oftheFBRValuation
Jurisdiction:Federal

2015

2014

SELLERS

2013

AdvanceTax(adjustedagainstCapitalGainsTaxinannualreturnsforfilers)
Rate:1%(filers)or2%(nonfilers)oftheFBRValuation
Jurisdiction:Federal

January(55)

2012
2011

2010
CapitalGainsTax(CGTadjustedagainstAdvanceTaxpaymentintheformoftaxcreditsforfilers)
Rate:10%,7.5%or5%ofgainsbasedonFBRValuation
Jurisdiction:Federal

CASESTUDIES
Even though weve laid out the taxes pretty clearly above, we are mindful that they are still not as
easy to interpret as it seems. In order to give you a fuller understanding, below are sample case
studiesofthetaxamountsapplicableunderthenewlaw,fromKarachi,LahoreandIslamabad.
In these case studies, you can see the actual tax amounts to be paid by buyers and sellers, both
before and after the changes were incorporated in the property tax mechanism in July 2016. The
detailsincludetaxesapplicableonbothfilersandnonfilers.
ThetablesshowthedifferenceintherateofCVT,StampDuty,AdvanceTaxandCGTapplicableon
the property transactions carried out before and after July 1, 2016. For the purpose of these case
studies,CGTiscalculatedonthedifferencebetweentheFBRValuationandtheRevisedDCRateof
thepropertyinquestion,andthecalculationsaremadebasedontheassumptionthatthepropertyis
soldafter2yearsofpurchase.Whereverquoted,marketpricesarebasedonZameen.comstatistics.
Karachi
ResidentialPlotinDHAPhaseVIII,Karachi
Area(SquareYards)
OldDCRate(PerSqYd)
RevisedDCRate(PerSqYd)
FBRValuation(PerSqYd)
OldDCRate(PerKanal)
NewDCRate:(PerKanal)
FBRValuation(PerKanal)
AverageMarketPrice(PerKanal)

500(1Kanal)
1,990
2,388
20,000
995,000
1,194,000
10,000,000
55,500,000

Note:(AllpricesareinPKR)

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

2/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

Lahore
ResidentialPlotinDHAPhaseIX,Lahore
Area(SquareYards)
OldDCRate(PerSqYd)
RevisedDCRate(PerSqYd)
FBRValuation(PerSqYd)
OldDCRate(PerKanal)
NewDCRate(PerKanal)
FBRValuation(PerKanal)
AverageMarketPrice:(PerKanal)

500(1Kanal)
4,000
6,000
9,000
2,000,000
3,000,000
4,500,000
9,500,000

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

3/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

Islamabad
ResidentialPlotinDHAPhaseII,Islamabad
Area(SquareYards)
OldDCRate(PerSqYd)
RevisedDCRate(PerSqYd)
FBRValuation(PerSqYd)
OldDCRate(PerKanal)
NewDCRate(PerKanal)
FBRValuation(PerKanal)
AverageMarketPrice(PerKanal)

500(IKanal)
3,330
5,000
16,000
1,665,000
2,500,000
8,000,000
14,500,000

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

4/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

OurVerdict
We have read and heard several times that the new taxes will encourage capital flight to the real
estatesectorsofothercountriessuchasUAE,buttransferfeesinDubaialoneamountto4%ofthe
property value. The percentage is even higher in other developed markets, so a quick comparison
saysthereturnsonofferinPakistansrealestatemarketarestillquitesizeabledespitetheincrease.
Thecasestudiesaboveshowthatevenwiththenewtaxregimeinplace,thehighestsumataxfiling
propertybuyerwouldpayastaxisamere2.53%ofthepropertysactualmarketprice,whichismuch
lower than the 4% they would pay when buying in Dubai, for instance. For sellers, this percentage
standsatasimilarlylow2.45%ofthepropertysactualvaluewhenaccountingforcapitalgains.
Given this situation, it would probably be a wise decision to become a taxfiler if you wish to save
yourselffromextrataxationandhavenoillegalincome.
Ourverdict?Letsrelaxabit.Itisntasbadasithasbeenmadeouttobe.

RatethisPost(42Votes)

Recommended Posts

Property

Newmechanism

RealEstate

Amendments

Property

Taxpayers,
attentionplease!

inplaceto
evaluatereal

TaxationFair
MarketValue

recommendedby
FBRinIncome

valuationtables
formajorcitiesin

estate

Conundrum

TaxOrdinance

Pakistan

2001rolledback
Whatarethe
implications?

ABOUTTHEAUTHOR:SAMRAZULFIQAR
SamraZulfiqarisanAssistantEditoratZameenMedia(Pvt)Ltd.Youcanalsofind
andfollowheronGoogle+.

Like

Tweet

52RESPONSESTOUNDERSTANDINGPAKISTANSNEWREALESTATETAXES
HamadRaza
August24,2016at6:29pm

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

5/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

I am glad you raised this point here. I am an overseas Pakistani who is working and
earningabroad.WhyshouldIfilemytaxreturninPakistan,ifIhavenoincomewhatso
everinPakistan?LetussupposeIwillstartfilingNilTaxreturnforthesakeofclaiming
any refund of advance income tax paid at the time of purchase or sale of property but
my dilemma being an overseas Pakistani is, I cannot go through the cumbersome
proceduresforfilingandrefund.Ontheotherhandrefundwillbeachallengingexercise
in addition to encountering conventional arrogance and ignorance of government
functionaries. Refer to many industries every day in media talk about their genuine
refundclaimsarenotbeingpaidGovernmentformonthssoleavetheindividualsaside,
nobody will do anything for individuals refund claim for God knows how many months,
years.Who has the time for all this especially if you are a nonresident? The other fall
out of filing nil return could be that if I start filing the tax return without any income in
Pakistan, still I can be bothered by Tax authorities and who knows what is next in the
store for filers as the history shows Government can only squeeze the people who are
filing tax returns and paying taxes. My conclusion is that apparently government is
trying to bring the tax evaders in tax net but I feel it will affect the people like me who
are the genuine buyers with all white money. I sincerely suggest, Government should
findawaytofacilitateoverseasPakistanis.
10 0
RatethisComment

Reply

ShahzadAnwar
August25,2016at11:45am

Being an overseas Pakistani, I have the same question you have

enlisted brother. Why should we go into tax return process to save


money,ifwearentearningfromwithinPakistan?
OPF and immigration do have our data that could be exchanged with
FBRtoauthenticateourbeingOverseasPakistanis.
0 0
RatethisComment

Reply

Shoaib
August24,2016at6:35pm

CanuexplainthesamesellertaxeswithCGTon120YresidentialplotDHAVIIIKarachi
?
0 0
RatethisComment

Reply

SamraZulfiqar

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

6/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
SamraZulfiqar
August25,2016at11:38am

Shoaib the formulas are given in the article, all you have to do is to
changetheplotsizeandcalculate.
1 0
RatethisComment

Reply

zahoor
August24,2016at8:43pm

CanyoupleaseexplainhowCapitalGainiscalculated?
Thanks
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:40am

In this article, I have calculated CGT on the difference between the


FBRValuationandtherevisedDCRateoftheproperty.

0 0
RatethisComment

Reply

KhawajaTasneemMurad
August25,2016at6:56pm

Thanks for your article but I believe there is a serious


confusion over CGT here. Citing case of DHA II
Islamabad, as you explained you have taken capital
gain of Rs 5.5 million i.e the difference between new
DC rate of Rs 2.5 million and FBR valuation of RS 8
million. 5% tax thereof comes to Rs 275 thousand. To
my understanding CGT does not work out this way at
all! Gain tax is always and only worked out on actual
gains ie the difference between purchase price and
saleprice.IfsomeoneisearningRs1millionorRs0.5
million on buy and sale of one plot, he should be
required to pay 10% tax on that earning/gain. How
come Rs 5.5 million is considered gain on every
transaction. Further, DC value of Rs 2.5 million is an
old one i.e before new changes in tax laws whereas

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

7/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
old one i.e before new changes in tax laws whereas
youhavementionedthisasnewone!Ithinkthereisa
revisit required on the article and it would be
appropriate to get it endorsed by some tax consultant,
ifthisisnotdoneasyet.
0 0
RatethisComment

Reply

Shahzad
August24,2016at8:48pm

DearSamra,
Theissuedoesntliewiththetaxes.Ifsomeonegettinggoodprofitontheirproperty,it
doesntbotherthemtopayalittlefromprofit.ThemainissueisFBR.Firstofalltheyll
take the taxes and later start blackmailing you about the investment made. Everyone
doesntkeeprecordofthesourceofmoneysoaneweraofblackmailingwillbestarted.
Thisisthemainconcernwhichisshakinginvestorsconfidence.
Shahzad
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:41am

I agree with you, the problem lies with the people who do not want to
declaretheirsourceofincome.
0 0
RatethisComment

Reply

Iqbal
August24,2016at9:19pm

1.Is there any basic threshold hold / exemption limit of buying and selling of property ,
meanpropertyofvalueofRs.,3millionisexemptfromtaxes,ornot,oronlyperiodwise
exemptionisavailable.
2,Whatincaseofasinglepropertyownedbyaperson.
0 0
RatethisComment

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

8/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
Reply

SamraZulfiqar
August25,2016at11:43am

PropertyworthPKR3millionandlessisexemptedfromCGT.
Despitethenumberofpropertyoneowns,taxeswillbeimplementedon
propertysoldorpurchased.
0 0
RatethisComment

Reply

ShafeyAliKhan
August24,2016at11:12pm

Numericallyspeakingyourblogisgreat,butamountoftaxesisnottheonlycasethatis
expected to lead to capital flight, as it is just a small result in the bigger picture of her
reasonsofcapitalflight.
ActuallyoneoftheforemostreasonoftherealestatemarketbeinghighlyLucrativefor
the local investor is, it being a very good laundry of black money, and with the fixation
ofFBRvaluationnopropertycanbedeclaredunderthis(FBRvaluationthreshold),and
inmanycasesitwillbecomeunjustifiableforthebuyertoexplainthesourceofmoney
according to FBRs valuation rates. So it will be convenient to fly the capital to the
heavensofblackmoneyandsaveoneselffromcumbersomeFBR/taxenquiries.

Although it wont directly affect the genuine customer but as the property prices are
determined on the supply and demand factors, and the black wealth holders are the
mostmajorsourceofdemand,andifthestopinvesting,propertypriceswilltendtofall
and will cause loss to the genuine customer as well, so its better to wait and let the
prices come to a stable position as all the fly able capital has gone out and only
genuine buyers are left in the market so that any loss in case of correction of prices
maybeaavoided.
2 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:45am

You are right sir, according to FBR, the sole purpose of the new tax
regimeistostopmoneylaunderingintherealestatesector.
0 0
RatethisComment

Reply

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%23

9/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

ShafeyAliKhan
August25,2016at4:32pm

It will still facilitate the money laundry in real estate


market as fbr valuation is peanuts as compared to
marketvalue.
0 0
RatethisComment

Reply

Fayzee
August24,2016at11:25pm

Its too bad and too much complicated. What about real estate agents? Any taxes on
them?
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:47am

It is not complicated, read it slowly and when you get stuck in the
tables, scroll up for references given in the text. If there is still a
confusion,leaveacommenthereanditwillexplainittoyou.
No taxes on the agents, all they are facing right now is a shortage of
investors.
0 0
RatethisComment

Reply

Waqas
August25,2016at12:48am

ThequestionremainsregardingShowingWhiteMoney.
0 0
RatethisComment

Reply

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

10/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

SamraZulfiqar
August25,2016at11:47am

Correct.
0 0
RatethisComment

Reply

Arif
August25,2016at3:58am

Letsrelaxabit.Itisntasbadasithasbeenmadeouttobe.
Itsnotabouttaxesanymore,noonemindsgivingtaxesassoonasprofitcanbemade
evenafterpayingtaxes.itsaboutshowingyoursourcesofincome,etc.(blackvs.white
money).Investorsflockedtorealestatecauseitwasprofitmakingmachinewithoutany
suchcatches,nowiftheywontreturntherewillnotbeanyprofitleftintherealestate.
Then,Letsrelaxabit.
2 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:48am

Thatcertainlyisonewayoflookingatit.
0 0
RatethisComment

Reply

MuhammadSiddique
August25,2016at8:07am

Apparentlypeopleinthebusinesshaveunderstoodtherealposition.Afterreadingyour
ARTICLE , I am sure many will change their attitude. Well done ,continue your such
effortsinpublicinterest.
0 0
RatethisComment

Reply

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

11/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
SamraZulfiqar
August25,2016at11:48am

ThankyouSiddique.
0 0
RatethisComment

Reply

Adeel
August25,2016at8:46am

GoodworkSamra.Keepitup!
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:49am

Iamgladyoulikedit,thankyouforappreciatingtheresearchwork.
0 0
RatethisComment

Reply

shereen
August25,2016at8:49am

ShouldnttheNONFILERSbeproperlypenalized?
and once they have bought property as non filers should they not be caught in the tax
net?
Showmeonecountrywhereyou have filers and non filers.thats why this country is
rotting
1 1
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:50am

In the new setup, the nonfilers are being penalized. For almost all
taxes,theywouldpaydoubletheamountafilerpays.

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

12/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
0 0
RatethisComment

Reply

Hasan
August25,2016at9:10am

Misssamrajeeaapnyfbrvaluationormarketvaluemy5timeskadifferencerakhaha
jbkaabyadifferenceitnanyrha
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:52am

I have quoted the FBR rates mentioned in the valuation table they
officially released. For reference, visit the following link to down the
FBRvaluationtables:
http://www.zameen.com/blog/propertyvaluationtablesformajorcities
inpakistan.html

0 0
RatethisComment

Reply

Abbas
August25,2016at9:17am

I do not verdict given at the end is correct comparison. Comparing any overseas
property market (with set procedures)with the new Pakistani system is a useless
exercise.Iamsure,thewriterisbiasedtowardsID.
1 1
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:55am

Itsurprisesmehowconvenientlyyouhavegivenyourverdictaboutme
beingbiasedwhileallihavedoneiscomparednumbers.

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

13/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
Nonetheless, i respect your opinion, you are welcome to share your
thoughtsonZameenblogasandwhenyoulike.
0 0
RatethisComment

Reply

Umair
August25,2016at10:08am

Thanksforsharingsuchsummarizedinformation.
Pleaseexplainmeaboutadvancetax.Isitwithholdingtaxorsomethingelse?
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:55am

Advancetaxandwithholdingtaxarethetwonamesforthesametax.
0 0
RatethisComment

Reply

AbuzarAbbas
August25,2016at10:34am

Greateffort.PlzadvicehowwouldyouknowtheFBRvaluationforyourproperty?Like
revisedDCratewerethereanysheettocalculateFBRvaluationforeacharea?
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at11:56am

PleasevisitthegivenlinktodownloadtheFBRvaluationtables:

http://www.zameen.com/blog/propertyvaluationtablesformajorcities
inpakistan.html

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

14/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
0 0
RatethisComment

Reply

SabeenMusthaq
August25,2016at10:48am

ImsorrybutabovetaxcalculationisnotcorrectatleastforDHAIslamabad.
FRBvaluationforDHA2residentialplotis400.000permarla(1marla=30.25sqyards)
sofor500sqyardsandjustfewdaysagoIpaidmyself136,000(2%CVT)forDHA2
plot(size500sqyards).
Nownewvaluefor500sqyardsplotinDHA2is6800.000(68lac)not4500,000
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at12:07pm

Thank you for notifying Sabeen, it was a mistake, i have fixed the
numbers.
Thenewvalueyouhavequotedi.e.PKR6,800,000,isittheFBRValue

ortherevisedDCrate?
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at12:45pm

The per marla FBR rate for Islamabad DHA II is PKR 400,000 and
since 1 Kanal in Islamabad has 17 marlas instead of 20, the FBR
ValuationforthisplotstandsatPKR6,800,000,notPKR8,000,000.
CVT is 2% of the revised DC rate, not that of the FBR value. Please
confirm me if you are sure that the revised per marla DC rate and the
FBRvalueforDHAIIisthesame.
0 0
RatethisComment

Reply

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

15/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

Aziz
August25,2016at10:58am

Hi
Goodarticle
Only one thing kindly let me know why you have deducted DC rate from FBR rate for
CGT calculation, I believe for comparison purpose it must be calculated on total value
ofFBRinsteadafterdeductingDCvalue.
Further kindly also let me know advance tax is implemented first time or it was there
earliertoo.
ThanksandBestRegards
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at12:11pm

Advancetaxhasbeenthereforawhile,itisntimplementedthisyear.
About CGT, you pay this tax on the gain (the profit) you make on a
property,notitsentirevalue.
0 0

RatethisComment

Reply

Aziz
August25,2016at2:38pm

Thanksforclarification.
For Capital Gain calculation, we will take into
consideration the actual sale amount or difference
betweenFBRvalueandNewDCvalue.
For example: If I have sold 1 kanal in Karachi for RS
20 million and value as per FBR is RS 10 million then
CGT (20M10M)=10 M x 5%= 500,00 or It will be
calculatedasexplainedbyyou.
BestRegards
0 0
RatethisComment

Reply

Aziz

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

16/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
August25,2016at11:02am

PleasealsoletmeknowisthereanyrelaxationforoverseasPakistani?
0 0
RatethisComment

Reply

SamraZulfiqar
August25,2016at12:12pm

Yes,CGTforoverseasPakistanisis5%.
0 0
RatethisComment

Reply

Aziz
August25,2016at2:39pm

5%irrespectiveonanytenurebetween1to3years.
0 0
RatethisComment

Reply

QaziImtiazuddin
August25,2016at12:24pm

Samra please answer the queries raised by overseas Pakistanis i.e of @Hamad Raza
and@Aziz.Willtheybeconsideredasnonfilers?
0 0
RatethisComment

Reply

gohar
August25,2016at12:38pm

dearSamraZulfiqar
pleaseupdateondhagujranwalaaffdavitfilesrealeseandratescomedown
ithourlyreadyourblogs
thanks
0 0

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

17/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog
RatethisComment

Reply

AshfaqullahKhan
August25,2016at1:09pm

Veryinformative.JazzaakAllaahKhairan.
0 0
RatethisComment

Reply

NasirToor
August25,2016at1:23pm

Nice article but I would like to clarify whether you have incorporated the transfer
charges of local housing society or not. I think you missed that. If we include those
charges then I think we would land much beyond 4%. Like in DHA lahore registration
and transfer fees also come out to be around or above 1% approximately. Please
includethosechargesalsoandthensummarise.Thankyou
0 0
RatethisComment

Reply

zahoor
August25,2016at1:27pm

Thanks for the reply. But there is still confusion about CGT, how Capital Gain will be
calculated?
1. Capital Gain Tax (CGT) is a Tax on Capital gain and is logically applicable on the
seller on the difference between Fair Market Value as declared by FBR (FMR) at the
time of purchase and FMR at the time of sale. For example if FMR at the time of
purchase was 10Million and FMR at the time of sale was 15 Million, logically, CGT
shouldbeappliedtothedifferencei.e.5Million.ButaspermyexperiencewithDHAin
thepast,theywerechargingthisatDCrateatthetimeofsaleandnotatthedifference.
Sowilltheydothesameinfutureaswell?Intheaboveexample,willtheychargeCGT
at15Mor5M?
2. How often FBR will update this FMR, monthly, quarterly, annually etc? If there is no
changeintheFMRrateatthetimeofsaleandpurchase,willCGTbezero?
3. What if there is drop in the property rates and FMR at sale is less than FMR at
purchase?
4. In the your case you missed one more Tax that is Advance Tax that is paid by the
buyerwhilemakingdraft/POfromthebank0.6%and0.3%ofthemarketvalue.Ifyou
addthis,totalTaxbecomessignificant.

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

18/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

addthis,totalTaxbecomessignificant.
0 0
RatethisComment

Reply

MuhmmadAli
August25,2016at1:29pm

Im in overseas for last 20 years. Pakistan has deteriorated continuously since


independence&moreviolentlyinlast35years.Wearenowamongtheworstcounties
ofthewordonmanysocial&economicalindexes.
Weareinreversegearfordecadesnow.
Nothing better could be expected in presence of morally & financially corrupt rulers +
bureaucracy . Motherland is occupied by criminals wherein you need to pay
gratifications to police to file a FIR & forget that you will get justice. Whenever buy or
sell any property (not DHA or Bahria) I had to pay gratification at every step.
Registrars for recovery of CVT & Stamp duty are demanding Registry to be made at
FBR value. I dont agree with guys saying that flight of capital has not happened with
thisstupidcomplicatedtaxsystems.Thereisnojustificationforadvancetax&CVTon
propertydeal&itisnotleviedanywhereelse.InPakistanifyoubuyyouenduppaying
12%oftaxes+Commissionwhichisuniqueinwholeworld.InLondon&Dubaiyoupay
5%allin.Whyflightofcapitalwillnothappeninthegiventaxation&LAOsituation.
RegardingrefundofAdvanceTaxthedepartmentwillnevergiveyouunlessyoupaya
certain%ageofkickback.IwasafilerbeforeleftPakistan&couldnevergetrefundas
clerksdemanded25%kickback.Realestateinvestmenthorizonhasbeenmadetotally

unattractive.
2 0
RatethisComment

Reply

Ihsan
August25,2016at1:39pm

RespectedMadam
pleaseadviseinsimpleEnglish,thatifanyOverseaspersonwanttopurchaseproperty
in Pakistan with money he earned overseas & transfer legally ,then is he exempted
fromTexornot..??
thanks
0 0
RatethisComment

Reply

zahoor
August25,2016at1:42pm

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

19/21

8/26/2016

August25,2016at1:42pm

UnderstandingPakistansnewrealestatetaxesZameenBlog

As far as Controlling the black money is concerned, the law was already there since
longtimeandselectivelyimplementedatthewilloftheauthorities.Thereisnochange
onthatfrontnow.FormeIrememberthatmyBankwasalwaysaskingthedetailsofall
the transactions above 1 M PKR. In my opinion it will still continue to be implemented
onmiddleclassandnotonbigfish.
1 0
RatethisComment

Reply

Rizwan
August25,2016at3:13pm

DearWriter
You are totally disconnect with the ground realty in case of Karachi at least. All
Provincial charges (stamp duty, CVT etc) are being applied on FBR valuation rate
instead of revised DC rate. If you could verify your working with the relevant Authroity
like DHA Karachi or KDA (Karachi) it would easy for the buyer and seller as this
authenticatesthecalculation.
0 0
RatethisComment

Reply

LEAVEAREPLY
Youremailaddresswillnotbepublished.Requiredfieldsaremarked *

Comment

Name *

Email *

Website

Typethetext
Privacy&Terms

PostComment

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

20/21

8/26/2016

UnderstandingPakistansnewrealestatetaxesZameenBlog

ZAMEEN.COM

COMPANY

CONNECT

Pearl One,

AboutUs

News

94-B/I, MM Alam Road,

ContactUs

Blog

Gulberg III, Lahore,

WorkWithUs

Forum

Pakistan.

Help&Support

Expo

0800-ZAMEEN (92633)

AdvertiseonZameen

RealEstateAgents

(+92) 42 3256 0445

PrivacyPolicy

AddyourProperty

EmailUs

TermsofUse

FOLLOW US
LikeusonFacebook
FollowusonTwitter
ShareusonGoogle+
ConsultusonLinkedin
Subscribetoourblog

OfficialHomePartners
LahoreProperty | KarachiProperty | IslamabadProperty HomeFinance
Copyright20072016Zameen.com.Allrightsarereserved.

http://www.zameen.com/blog/understandingpakistansnewrealestatetaxes.html?utm_source=Oempro&utm_medium=Email&utm_content=Subscriber%2

21/21

Você também pode gostar