Escolar Documentos
Profissional Documentos
Cultura Documentos
UnderstandingPakistansnewrealestatetaxesZameenBlog
NEW
BLOG
NEWS
Buying
Construction
DevelopmentAuthority
General
HomeDecor
HousingSchemes
InvestmentTips
Leasing
News&Updates
PakistanRealEstate
Renting
Selling
Taxation
Tourism
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
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
0 0
RatethisComment
Reply
KhawajaTasneemMurad
August25,2016at6:56pm
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
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
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
ContactUs
Blog
WorkWithUs
Forum
Pakistan.
Help&Support
Expo
0800-ZAMEEN (92633)
AdvertiseonZameen
RealEstateAgents
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