Dear friends congratulation. Finaly a fair workable out come on taxes. Basicly no major changes from last year. Market will insha Allah recover now and trading should start with normal pace like before July 1st 2016
FBR to set market prices once a year and capital gain tax to recieved on market rates for 3 years at these rates. Aftrer 3 years ZERO tax on profits on property sales. FBR market rates will be about 200% to 300% higher than current DC rates.
Capital gain tax will be 10% for first (Same as last year no change here)
Capital gain tax will be 7.5% for second year ( Was 5% last year so increase 2.5%)
Capital gain tax will be 5% for third year ( Was 0% last year so increase of 5% )
Property purchased before July 1st 2016 will have a flat 5% capital gains tax sold any times within 3 years . Even if sold today only 5%.
0.4% Withholding tax will be charged for over 40 lacs values only ( Was charged at 30 lacs last so good news here now amount 10 lacs higher). Lower priced plots will be seeing more demand due to this change. Lower priced properties will gain strong in future.
There is no withholding or capital gain tax on any property below 40 lakhs worth so files like Lake City Lahore 5 or 7 maarla will gains strongest. Insha Allah
Please check this video too
Continued editing with latest new information being update here.....
Http://www.lahorerealestate.com/ads/index.php
https://www.facebook.com/Lahore-Real-Estate-119021218141413/
Your friend.
Choudry Mujahid Yasin ( CMY )
+16308024186 Plz store this number on your phone and use for all direct messages to me. You can ask me privately about worth of any plot you wanna hold or going to buy regardless from where you are buying it. Also use +16308024186 for getting yourself & all non dealers friends added to LRE WhatsApp groups
Finance Division
Press Release
July 30, 2016
On the issue of Valuation of Property and related tax matters, the Federal Minister for Finance held successful talks with the property evaluators from all over the country at the Federal Board of Revenue on late Saturday evening. The main points of this discussion as agreed are:
· Valuation has been agreed for major cities
· Valuation tables will be notified by FBR instead of valuation by SBP approved valuers
· Till such time and for those areas for which no valuation tables are notified, DC rate will apply
· Holding period for CGT(capital gain tax) has been reduced from 5 to 3 years
· There will be no CGT on property held for more than 3 years
· Properties acquired on or after 1st July 2016:
o If holding period is up to 1 year - CGT 10%
o If holding period is between 1 and 2 years - CGT 7.5%
o If holding period is between 2 and 3 years - CGT 5%
o If holding period is more than 3 years - CGT 0% / exempt
· Properties acquired before 1st July 2016:
o If holding period is less than 3 years - CGT 5%
o If holding period is more than 3 years - CGT 0% / exempt
· Valuation will apply on (i) CGT (ii) withholding taxes (iii) for the purposes of sec 111
· Basic threshold of Rs 3 million for application of withholding tax on purchase of immovable property enhanced to Rs 4 million
· Appropriate legislation will be done to give effect to the proposed changes as agreed with all stakeholders