Pakistan: Capital gains tax changes, immovable property | KPMG | GLOBAL

Pakistan: Capital gains tax changes, immovable property

Pakistan: Capital gains tax changes, immovable property

An “amendment ordinance” revises the tax treatment on dispositions of immovable property.


Related content

Previously, the fair market value of immovable property was determined by reference to the basis of a valuation determination made by a panel of approved valuation personnel from the State Bank of Pakistan. With the amendment, the Federal Board of Revenue now has the authority to determine the fair market value of immovable property. In general, the fair market value will be the value fixed by the District Officer (Revenue) or other person authorized for purposes of the stamp duty.

The amended rules also concern withholding tax. For instance, the period of limitations has been reduced from five years to three years. Also, tax is not withheld on the first sale or transfer of immovable property acquired or allotted under certain circumstances.

Changes have been made to the holding period threshold—gain realized on the disposal of immovable property is exempt from capital gains taxation if held for five years (increased from the previously applicable two-year period).


Read an August 2016 report [PDF 312 KB] prepared by the KPMG member firm in Pakistan

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal