Capital Gains Tax (CGT) in Pakistan is imposed on profits earned from selling capital assets, mainly immovable property and listed securities. The tax rate depends on the asset type, acquisition date, holding period, and whether the seller is an active taxpayer registered with the Federal Board of Revenue (FBR).
CGT on Immovable Property
For properties acquired on or after July 1, 2024, a major shift has occurred.
-
Filers are charged a flat 15% CGT on net gains.
-
Non-filers or late filers are taxed under personal income tax slabs, starting at 15% and going up to 45%, depending on property value.
For properties acquired on or before June 30, 2024, regressive tax rates apply. The longer the holding period, the lower the tax, with complete exemption available after extended ownership (such as six years for open plots).
CGT Exemptions on Property
CGT exemptions apply to agricultural land in rural areas and one personal residential property (house up to 500 sq. yards or flat up to 4,000 sq. feet), subject to usage and first-time exemption conditions.
Capital Gains Tax on Listed Securities
CGT on shares traded at the Pakistan Stock Exchange (PSX) is calculated and collected by the NCCPL.
-
Securities acquired on or after July 1, 2024 are taxed at a flat 15% for filers.
-
Shares bought between July 1, 2013, and June 30, 2024 follow regressive rates, reaching 0% after six years.
-
Securities acquired before July 1, 2013 are fully exempt.
Key Takeaway
Being on the Active Taxpayer List (ATL) significantly reduces tax liability. CGT applies only to profit, not the total sale amount, and must be declared in the annual income tax return through the FBR portal.
