When you’ve made arrangements and paid your taxes, someone at the Registry will look up your CNIC and see you’re not on the Active Taxpayer List, so suddenly you’re paying millions more in tax.
This is very common in Pakistan and many people will think they can pay the tax rate as per last year or they’re a taxpayer.
Below you’ll find the current FBR tax rates for property. This has been taken from the FBR Withholding Tax Rate Card for Tax Year 2027 (July 2026 – June 2027).
Tax on Purchase of Properties (Section 236K)
According to FBR guidelines everyone who purchases a property in Pakistan during 2026-27 will have to pay advance tax under section 236K based on the Fair Market Value of the property.
| Value | Tax Payer Rates | Non Tax Payer Rates |
|---|---|---|
| Up to PKR 50 million | 1.25% | 10.5% |
| Between PKR 50 million & PKR 100 million | 1.25% | 14.5% |
| Above PKR 100 million | 1.25% | 18.5% |
As you can see there are flat rates for Tax Payers and much higher rates for Non Tax Payers.
This is advance tax which means you can claim it as a credit against your tax return. Be sure to keep records of your payment.
Tax on Sale of Properties (Section 236C)
This is the withholding tax for immovable properties. This is paid by the seller during registration/transfer.
| Status | Tax Rate |
|---|---|
| Tax Payer | 2.75% |
| Non Tax Payer | 11.5% |
This can often be confused with Capital Gains Tax.
This is a withholding tax meaning it’s charged on the amount of the sale, no matter what your profit was. It can be claimed as a credit against your final tax.
Capital Gains Tax on Property Sales (FBR Guidelines)
The Capital Gains Tax on the sale of property (as stated in section 37) is based on your actual profit. How much you pay will depend on when you purchased your property.
Purchased on or after July 1st 2024
Tax Payers will pay a flat 15% on the gain. No matter how long you’ve owned the property.
Non Tax Payers will pay their regular rates. Minimum 15% for Individuals/AOPs.
Purchased on or before June 30th 2024 (Tax Payer rates, old ownership periods)
| Ownership Period | Open Plot | Built Plot | |
|---|---|---|---|
| Less than 1yr | 15% | 15% | 15% |
| 1-2yr | 12.5% | 10% | 7.5% |
| 2-3yr | 10% | 7.5% | 0% |
| 3-4yr | 7.5% | 5% | 0% |
| 4-5yr | 5% | 0% | 0% |
| 5-6yr | 2.5% | 0% | 0% |
| More than 6yr | 0% | 0% | 0% |
If you have purchased an older property you will be affected by the ownership period. However if you purchase a newer property your rate won’t be reduced.
Example:
If you are a Tax Payer, purchased a property for 20 million in March 2025 and sold it for 26 million.
Profit = 6 million
Capital Gains Tax = 15% = 900,000
Section 236C = 2.75% of 26 million = 715,000
You will have to pay a total of 185,000 on your return.
If you’ve paid more advance tax than you need to you can claim it back, but only if you are actually filing.
Tax Payer vs Non Tax Payer
It’s easy to see the difference between tax payer and non tax payer.
| Value | Tax Payer | Non Tax Payer | Extra Cost |
|---|---|---|---|
| 20 Million (Section 236K) | 250,000 | 2,100,000 | 1,850,000 |
| 20 Million (Section 236C) | 550,000 | 2,300,000 | 1,750,000 |
| Value | Tax Payer | Non Tax Payer | Extra Cost |
|---|---|---|---|
| 60 Million (Section 236K) | 750,000 | 8,700,000 | 7,950,000 |
| 60 Million (Section 236C) | 1,650,000 | 6,900,000 | 5,250,000 |
However you will only incur a fraction of this by filing.
If you are a Non Tax Payer purchasing the property you can’t really consider it a business cost. If you are buying a lot of property but have no returns on file, the FBR will want to know where the money is coming from. They have data driven audits to look for this.
Other Costs
These are just the Federal taxes. You will also have to pay Stamp Duty, Registration, Capital Value Tax and Society Transfer Fees. This will depend on your Province and Scheme.
You may also have a higher taxable amount. Many areas have a minimum value based on the FBR Valuation Tables. Be sure to know what the current table is for your area.
Late Filers (ATL Surcharge Payers)
Previously you would have had a medium rate for property. But the FBR have said this doesn’t exist this year.
If you haven’t filed by October 31st 2026 you will be considered a Non Tax Payer until you get back on the Active Tax Payer List.
Can I get this sorted quickly?
Unfortunately not. To get back on the list you need to:
- File your late return and Wealth Statement.
- Pay Section 182 Penalty.
- Pay Section 182A Surcharge. This is 25,000 for Individuals, 50,000 for AOPs and 100,000 for Companies.
- Wait until your name comes back on the list.
Withholding agents will look at your status. Until your name comes back on the list you are considered a Non Tax Payer.
Most of the time this will be cheaper.
If you are purchasing a 20 million property you will be paying an extra 1,850,000 so the 25,000 surcharge looks like nothing.
Do things properly. Get your affairs in order and get back on the list. Then book your transfer.
Proposed ATL-U Form
In October there was a proposed rule change. This would have meant Individual Late Filers could avoid paying the surcharge if they promised not to purchase any property for 6 months.
This has not been finalised and even if it is it wouldn’t be the correct choice if you are looking to purchase property.
Before you Book your Transfer
- Check you’re status on the ATL. Text ‘ATL (space)’ and your 13 digit CNIC to 9966.
- Ask the other party to check their status. This will impact how much they pay and how you can negotiate.
- Check FBR Valuation for the exact location.
- Ensure your Wealth Statement shows where the money is coming from.
- Keep all records of your tax payments. You will need them for your credit.
Don’t Get it Wrong
Getting it wrong can cost you more than your agent.
Our Property Tax Experts at TaxAccountant.pk will work out exactly how much you owe. We will get you back on the list as a Tax Payer and ensure you claim your credits for Section 236C and Section 236K. We will also complete your Wealth Statement so we can explain your purchase if the FBR ask.
Contact us before booking your transfer.
