The Federal Board of Revenue (FBR) has introduced progressive tax rates on property transactions under the withholding tax regime, divided into three categories: filers, late filers, and non-filers. Late filers face higher rates to encourage timely tax filings. The FBR also established fair market value slabs for taxation:
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Properties valued up to Rs50 million: 12% tax for non-filers
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Properties valued between Rs50 million and Rs100 million: 16% tax for non-filers
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Properties valued above Rs100 million: 20% tax for non-filers
Filers face lower tax rates on property purchases:
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Up to Rs50 million: 3%
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Between Rs50 million and Rs100 million: 3.5%
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Above Rs100 million: 4%
Late filers’ rates are higher:
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6%, 7%, and 8% respectively for the same value brackets.
The FBR has also imposed a 5% Federal Excise Duty (FED) on commercial properties and the first sale of residential properties.
For property sales:
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Filers’ rates are 3% for up to Rs50 million, 4% for Rs50-100 million, and 5% for over Rs100 million.
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Non-filers face a flat 10% rate.
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Late filers’ rates are 6%, 7%, and 8% based on property value.