Lahore: The Federal Board of Revenue (FBR) has updated its withholding tax (WHT) regulations affecting the sale and purchase of immovable property, motor vehicle transactions, and salary income, according to a news source on July 10.
As per the details, the new provisions, effective from July 1, 2024, are outlined in a notification directing Inland Revenue chief commissioners to ensure compliance with these updated rules.
Key changes for immovable property transactions:
Withholding tax rates for the sale of immovable property vary based on the type of property and the duration of ownership:
For filers:
3% for transactions up to PKR 50 million
3.5% for transactions exceeding PKR 50 million but up to PKR 100 million
4% for transactions over PKR 100 million
For late filers:
6% for transactions up to PKR 50 million
7% for transactions exceeding PKR 50 million but up to PKR 100 million
8% for transactions over PKR 100 million
For non-filers:
A flat rate of 10% on the gross consideration
Withholding tax rates for the purchase of immovable property are determined by the property’s value and the tax regulations set by the local government.
For filers:
3% for fair market values up to PKR 50 million
3.5% for values exceeding PKR 50 million but up to PKR 100 million
4% for values over PKR 100 million
For late filers:
6% for fair market values up to PKR 50 million
7% for values exceeding PKR 50 million but up to PKR 100 million
8% for values over PKR 100 million
For non-filers:
12% for values up to PKR 50 million
16% for values exceeding PKR 50 million but up to PKR 100 million
Additionally, the notification removes specific exemptions for manufacturers, commercial importers, wholesalers, dealers, and distributors, requiring tax deductions irrespective of the sector involved. These changes aim to enhance tax compliance and ensure fair taxation practices across these sectors.
As a graduate in English Literature, Zohaib believes that words are not just a mere figment of imagination. It takes wisdom to be good at them. Following this reason, he is pursuing his career as Public Relations and Content Specialist at Zameen.com.
