CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Nov 21, 2013

Rental income tax is
quite low in Pakistan


INDIVIDUAL TAXATION

Nonresident individuals are taxed only on their Pakistani-sourced income. Married couples are taxed separately, joint taxation is not allowed in Pakistan.

The tax year is the 12-month period ending on 30 June and is denoted by the calendar year in which it ends. The tax year 2013 is from 01 July 2012 up to 30 June 2013. The tax year 2014 is from 01 July 2013 up to 30 June 2014.

INCOME TAX

RENTAL INCOME
Income from property, including rental income, is taxed at progressive rates. The tax base is the gross rent.

INCOME TAX 2013 ON PROPERTY INCOME

TAXABLE INCOME, PKR(US$)
TAX RATE
Up to 150,000 (US$) 
0%
150,000 – 400,000 (US$3,697)
5%
400,000 – 1,000,000 (US$9,242)
7.50%
1,000,000 – 2,000,000 (US$18,484)
10%
2,000,000 – 3,000,000 (US$27,726)
12.50%
3,000,000 – 4,000,000 (US$36,969)
15%
Over 4,000,000 (US$36,969)
17.50%
Source: Global Property Guide

INCOME TAX 2012 ON PROPERTY INCOME

TAXABLE INCOME, PKR(US$)
TAX RATE
Up to 150,000 (US$) 
0%
150,000 – 400,000 (US$3,697)
5%
400,000 – 1,000,000 (US$9,242)
7.50%
Over 1,000,000 (US$9,242)
10%
Source: Global Property Guide

Rental Income Tax

As of 2007, income from property is subject to a presumptive tax regime. Income from leasing property is subject to a 5% final withholding tax levied on the gross rent.

Individuals earning rental income not exceeding PKR150,000 (US$1,581) are exempted from taxation if they have no other sources of income.

CAPITAL GAINS
Capital gains realized by individuals from selling real property are not taxed in Pakistan unless sales of real property are part of the individual’s business.

Capital gains in connection with a taxpayer’s business activities are considered as business income and taxed accordingly.


PROPERTY TAX


Property Tax

Property tax is a provincial tax levied on the value of property. It is generally levied at a flat rate of 10% but the tax rates vary, depending on the province.

Property tax is levied at progressive rates in the Punjab province.

In the province of Sindh, property tax is levied at a flat rate of 20% on the annual rental value of the land and building.

Capital Value Tax

Individuals who purchase real property in urban areas or acquire the right to use the real property for more than 20 years are liable to pay capital value tax. The tax is levied at 4% on the property’s recorded value. If no property value is recorded, the tax is levied at PKR50 (US$0.46) per square yard of the property.






Comments

#1 SHAHID MALIK | June 20, 2010

i got an excellent information.

Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Cityscape Global
Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Pakistan



PROPERTY RECOMMENDATIONS

 
Download free Global Property Guide reports

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions
Chinese property buyers and Asian buyers, there is great property for high net worth Chinese buyers on Juwai.com

Which parts of the world are most attractive for property investment today?

Click here to download our FREE Property Recommendations Reports!

Close Me