The Federal Board of Revenue (FBR) has implemented revised rates on buyers and sellers of immovable properties starting from July 1, 2023.
Withholding tax rates under sections 236 C and 236 K of the Income Tax Ordinance 2001 have been increased. For filers of income tax returns, the rate of withholding tax on the sale or transfer of immovable property has been raised from 2 percent to 3 percent. For non-filers, the rate has been increased from 4 percent to 6 percent.
Similarly, the rate of withholding tax on the purchase or transfer of immovable property for filers has been increased from 2 percent to 3 percent, and for non-filers, it has been raised from 7 percent to 10.5 percent.
These changes were made through the Finance Act 2023, and the new rates for advance tax are 3 percent for filers and 6 percent for non-filers under section 236C, while under section 236K, the rates are 3 percent for filers and 10.5 percent for non-filers, as per FBR’s instructions.
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