Rates of Capital Gains Tax in Pakistan for 2024

Understanding capital gains tax is crucial for any investor in Pakistan. This article explores the tax rates applicable in 2024 for capital gains on disposal of securities and immovable property.

What is Capital Gain?

A capital gain arises when you sell an asset for more than you purchased it for. In simpler terms, it’s the profit you make on an investment.

Tax Rates on Capital Gains from Securities (Stocks, Bonds, etc.)

The tax rate you pay on capital gains from securities depends on the holding period, or the duration you held the security before selling it. Here’s a breakdown for 2024:

Holding PeriodRate of Tax
Up to 1 year15%
Over 1 year but less than 2 years12.5%
Over 2 years but less than 3 years10%
Over 3 years but less than 4 years7.5%
Over 4 years but less than 5 years5%
Over 5 years but less than 6 years2.5%
Over 6 years0%

Key Points to Note:

  • These rates apply to securities acquired on or after July 1, 2022.
  • Securities acquired between July 1, 2013, and June 30, 2022, are taxed at 12.5%.
  • Securities acquired before July 1, 2013, are exempt from capital gains tax.
  • Mutual funds and similar investment schemes have separate tax rates for stock funds and other funds.

Tax Rates on Capital Gains from Immovable Property (Land, Buildings)

The tax rate on capital gains from immovable property also varies based on the holding period and the type of property:

Holding PeriodOpen PlotsConstructed PropertyFlats
Up to 1 year15%15%15%
Over 1 year but less than 2 years12.5%10%7.5%
Over 2 years but less than 3 years10%7.5%0%
Over 3 years but less than 4 years7.5%5%
Over 4 years but less than 5 years5%0%
Over 5 years but less than 6 years2.5%
Over 6 years0%

Remember: This information is for general guidance only. Consult us for personalized advice.

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