Property Tax Rates in Pakistan
A tax which is levied on property is known as property tax. Buyer / seller pays the property tax according to the assessments of local tax authorities or government. Here is the detail of Property Tax Rates in Pakistan as per Finance Bill 2017.
Types of Taxes and collecting bodies
Stamp Duty / SD (Paid as per DC Rate for registry of property)
Withholding Tax / WHT (Paid as per FBR Rate)
Capital Gain Tax / CGT (Paid as per FBR Rate)
Wealth Tax / WT (Paid on the difference of FBR Rate & DC Rate) Tax introduced as per Property Tax Amnesty Scheme if someone fails to provide the source of income)
Taxes to be paid by property buyer
As per budget 2017-18 all provincial taxes are included in Stamp Duty. So buyer has to pay the Stamp Duty, Withholding Tax & Wealth Tax (Optional). Here is the detail of taxes to be paid by buyer.
CASE 1- BUYER – FILER (Urban Property)
Stamp Duty = 5% as per DC Rate
Withholding Tax = 2% as per FBR Rate
Wealth Tax (Optional) = 3% on the difference of FBR Rate & DC Rate
CASE 2- BUYER – FILER (Rural Property)
Stamp Duty = 3% as per DC Rate
Withholding Tax = 2% as per FBR Rate
Wealth Tax (Optional) = 3% on the difference of FBR Rate & DC Rate
CASE 3- BUYER – NON FILER (Urban Property)
Stamp Duty = 5% as per DC Rate
Withholding Tax = 4% as per FBR Rate
Wealth Tax (Optional) = 3% on the difference of FBR Rate & DC Rate
CASE 4- BUYER – NON FILER (Rural Property)
Stamp Duty = 3% as per DC Rate
Withholding Tax = 4% as per FBR Rate
Wealth Tax (Optional) = 3% on the difference of FBR Rate & DC Rate
CASE 5- GIFTED PROPERTY to non-relatives
For gifted properties which are not gifted within families, stamp duty will be 5% for urban and 3% for rural areas.
CASE 6- GIFTED PROPERTY to relatives like spouse, mother, father, son, daughter, grandmother or grandfather
Stamp duty for urban property gifted within family members will be 3%.
Taxes to be paid by property seller
Seller has to pay Capital Gain Tax, Withholding Tax and Wealth tax (Optional). Here is the detail of taxes to be paid by buyer.
Withholding Tax – WHT (to be paid by seller);
WHT is only applicable if property price is more than 40 LAC as per FBR Rate
0% WHT if property price is less than 40 LAC as per FBR Rate
0% WHT if property is sold out after 5 years of purchase
Withholding Tax (When seller is filer) = 1% as per FBR Rate
Withholding Tax (When seller is non-filer) = 2% as per FBR Rate
Capital Gain Tax – CGT (to be paid by seller);
10% CGT, if property is sold out within 1 year of purchase
7.5% CGT, if property is sold out within 2 year of purchase
5% CGT, if property is sold out within 3 year of purchase
0% CGT, if property is sold out after 3 year of purchase
Wealth Tax – WT (to be paid by seller)
3% Wealth Tax to be paid on the difference of FBR Rate & DC Rate