The new provisions, which take effect on July 1, 2024, are detailed in a notification that instructs chief commissioners of Inland Revenue to make sure that these updated rules are followed. The main changes for transactions involving immovable property are as follows: the rates of withholding tax on the sale of immovable property vary according to the type of property and the length of ownership.
For filers:
3% for transactions up to PKR 50 million 3.5% for transactions exceeding PKR 50 million but up to PKR 100 million 4% for transactions over PKR 100 million 3% for fair market values up to PKR 50 million 3.5% for values exceeding PKR 50 million but up to PKR 100 million 4% for values over PKR 100 million
For late filers:
six percent for deals up to fifty million rupees.
7 percent for transactions up to PKR 100 million but over PKR 50 million
On each transaction exceeding PKR 100 million, 8%
6% up to PKR 50 million for fair market values
7% for amounts over PKR 50 million but not more than PKR 100 million
8% on amounts over PKR 100 million
For non-filers:
10% as a fixed percentage of the gross consideration
The valuation of the property and the tax laws established by the local government determine the withholding tax rates for the purchase of immovable property.12% up to PKR 50 million in values
16% for amounts up to PKR 100 million but over PKR 50 million
20% on amounts greater than PKR 100 million
Furthermore, the notification eliminates industry-specific exemptions for distributors, dealers, wholesalers, commercial importers, and manufacturers, necessitating tax deductions regardless of the industry. certain modifications are intended to improve tax compliance and guarantee equitable taxation in certain industries.
