KARACHI: The tax authorities have increased withholding tax (WHT) on transfer of immovable property for sellers to 1 per cent for filer and 2 per cent for non-filer.
The Federal Board of Revenue (FBR), clarifying the new amendments in the Finance Act 2016, has further explained that the WHT for the buyers on immovable property has been increased to 2 per cent for filer and 4 per cent for non-filer. The said tax is applicable only if the immovable property was acquired within five years in the hands of the buyers, it added.
The FBR stated that the income of builders and developers would be taxed on the basis of specified rates based on cities and area of the property in respect of projects approved after July 1, 2016. The board will prescribe rules regarding mode and manner of tax payment.
The capital gain tax on sale of immovable property on disposal of immovable property acquired within the last five years has been increased to 10 per cent from 5 per cent under Finance Act 2016.
