Real Estate Update, Latest Prices & Market Overview

Withholding Taxes Will Remain Unchanged Till Establishment of new Directorate

Get real time updates directly on you device, subscribe now.

Read Time: 1 mins
Withholding taxes on the sale and purchase of immovable properties will remain unchanged until the establishment of the new directorate to ascertain fair market valuation.
As per the guidelines of withholding tax rate card for the tax year 2019, the latest tax rate for the sale and purchase of immovable properties will be applicable with the official notification to set up Directorate of Immovable Properties.
However, in the Finance Act, 2018 the government updated the rate of tax on property transactions and pull back the levy of taxes through several different provisions.

Section 236C, 236K, and 236W have been caused the deduction of withholding tax on immovable properties. But these provisions were to be removed from July 01, 2018 and replaced by the Section 230F.

The withholding tax rate card also differentiates the filer and non-filer. The filer will pay the withholding tax rate at one percent, while a non-filer will pay that at two percent. They are supposed to pay time at the time of registering, recording or attesting transfer of any immovable properties.

According to the section 230F(23) read with section 230F(22), the Sections- 236C, section 236W, Section 111(4)(c) – and the Division X of Part IV of the First Schedule, shall not be applicable with effect from the date, Federal Government so appoints by notification in the official Gazette., for this purpose.

Likewise, the withholding tax rate for the filers and non-filers at the time of purchase will be two percent and four percent respectively. Where the worth of immovable property exceeds from four million rupees.

Moreover, on the purchase or transfer of immovable properties, the three percent tax rate under section 236W will also be applicable.

Comments
Loading...