Property Tax Responsibilities in Pakistan
Seller: The seller is required to pay Capital Gain Tax (CGT) under Section 236K. This tax is submitted directly to the Federal Board of Revenue (FBR).
Buyer: The buyer must pay several taxes and charges, including:
- Withholding Tax – Paid to FBR
- Stamp Duty
- Punjab Land Record Authority (PLRA) Fee
- Committee or Cantoantment Board Tax
- Other Expenses – Registry writing, Intiqal (ownership transfer) fees, etc.
- Society-Specific Fees – Some housing societies (e.g. DHA, Bahria Town, or government schemes) have their own membership charges, transfer fees, and documentation requirements.
FBR Capital Gain Tax for Property Sellers
The tax a seller pays to the Federal Board of Revenue (FBR) depends on their tax filing status. There are three main categories:
- Active Filer: Regularly files tax returns on time.
- Late Filer: Either recently became a filer or has a history of inconsistent filings.
- Non-Filer: Has not registered or submitted any tax returns.
Tax Rates Based on Property Value
| Property Value | Active Filer | Late Filer | Non-Filer |
|---|---|---|---|
| Less than 5 Crore | 4.5% | 7.5% | 11.5% |
| 5 – 10 Crore | 5% | 8.5% | 11.5% |
| Above 10 Crore | 5.5% | 9.5% | 11.5% |
Example:
If a seller sells a property worth PKR 1 Crore:
• Active Filer pays PKR 4.5 Lacs
• Late Filer pays PKR 7.5 Lacs
• Non-Filer pays PKR 11.5 Lacs
If a seller sells a property worth PKR 1 Crore:
• Active Filer pays PKR 4.5 Lacs
• Late Filer pays PKR 7.5 Lacs
• Non-Filer pays PKR 11.5 Lacs
FBR Property Tax for Buyers in Pakistan
The amount of tax a buyer pays to FBR depends on their filing status and the value of the property. Below is the breakdown:
Tax Rates Based on Property Value
| Property Value | Active Filer | Late Filer | Non-Filer |
|---|---|---|---|
| Less than 5 Crore | 1.5% | 4.5% | 10.5% |
| 5 – 10 Crore | 2% | 5.5% | 14.5% |
| Above 10 Crore | 2.5% | 6.5% | 18.5% |
Example:
If a buyer purchases a property worth PKR 1 Crore:
• Active Filer pays PKR 1.5 Lacs
• Late Filer pays PKR 4.5 Lacs
• Non-Filer pays PKR 10.5 Lacs
If a buyer purchases a property worth PKR 1 Crore:
• Active Filer pays PKR 1.5 Lacs
• Late Filer pays PKR 4.5 Lacs
• Non-Filer pays PKR 10.5 Lacs
Filer Status Categories:
- Active Filer: A person who regularly submits their tax return on time every year.
- Late Filer:
- a) Recently became a filer
- b) Registered but did not submit returns properly in past years
- Non-Filer: A person who has never submitted a tax return and is not registered with FBR.
