The Government of Pakistan has announced new tax rates for immovable property in the latest budget for the fiscal year 2024-25. These changes will affect the Capital Gains Tax and the Advance Tax on the sale of immovable property.
Capital Gain Tax on Immovable Property (For Filers)
These are the rates for the previous year:
Current Rates (FY 2023-24)
| Holding Period | Open Plots | Constructed Property |
|---|---|---|
| Up to 1 year | 15% | 15% |
| 1 to 2 years | 12.5% | 10% |
| 2 to 3 years | 10% | 7.5% |
| 3 to 4 years | 7.5% | 5% |
| 4 to 5 years | 5% | 0% |
| 5 to 6 years | 2.5% | 0% |
| Over 6 years | 0% | 0% |
New Rates (FY 2024-25)
| Holding Period | All Properties |
|---|---|
| Up to 1 year | Flat 15% |
| 1 to 2 years | Flat 15% |
| 2 to 3 years | Flat 15% |
| 3 to 4 years | Flat 15% |
| 4 to 5 years | Flat 15% |
| 5 to 6 years | Flat 15% |
| Over 6 years | Flat 15% |
Note: Non-filers will be taxed at normal rates with a minimum of 15% and a maximum of 45%.
Advance Tax on Sale of Immovable Property
Similarly, these are the current and new rates for advance tax on sale of immovable property:
Current Rate (FY 2023-24)
| Property Value | Rate (Filers) | Rate (Non-Filers) |
|---|---|---|
| Up to Rs. 50 million | 3% | 6% |
| Rs. 50-100 million | 3% | 6% |
| Above Rs. 100 million | 4% | 6% |
New Rate (FY 2024-25)
| Property Value | Rate (Filers) | Rate (Late Filers) | Rate (Non-Filers) |
|---|---|---|---|
| Up to Rs. 50 million | 3% | 6% | 10% |
| Rs. 50-100 million | 3.5% | 7% | 10% |
| Above Rs. 100 million | 4% | 8% | 10% |
The new rates aim to standardize the tax structure for all types of properties and holdings. These changes are expected to increase the revenue from property taxes and ensure fair taxation across different property values and durations.
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