Islamabad: The Federal Board of Revenue (FBR) requires citizens who own more than two immovable properties to file a form specified for the deemed tax levied on those properties by December 31, news sources reported on November 24.
The deemed tax will be applicable at 5% of the immovable property’s fair market value, with the tax rate on such income set at 20%. The government has enacted regulations that would tax residents who own immovable property in Pakistan on deemed income starting in the tax year 2022. The filling of the form has been made mandatory by the authorities. Even individuals who have previously submitted their taxes must file the deemed tax form by December 31, 2022. Section 7E of the Income Tax Ordinance requires taxpayers to furnish information on all forms of immovable property including; agricultural, industrial, residential, and commercial property, as well as the total amount of presumed taxable assets and deemed income.
It is important to note that FBR has set a tax target of PKR 7.4 trillion, which requires readjustments of the types of tax levied on various sectors. The government has already imposed separate tax regimes for filers and non-filers to accommodate the tax revenue targets.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
