03/01/2026
📌 1. Advance Income Tax on Purchase of Immovable Property – Section 236K
This tax is collected from the buyer/purchaser based on the fair market value (FMV) of the property at the time of transfer.
🧾 Rates (Tax Year 2026)
Fair Market Value of Property (PKR) Filer Late Filer Non-Filer
≤ 50 million 1.5% 4.5% 10.5%
> 50 million to ≤ 100 million 2.0% 5.5% 14.5%
> 100 million 2.5% 6.5% 18.5%
• Filer = Taxpayer on the Active Taxpayers List (ATL) who has filed return for preceding year/s.
• Late Filer = Filed but after due date (with ATL surcharge).
• Non-Filer = Not on ATL.
These are adjustable advance taxes payable at transfer time.
👉 Example: If you buy property valued at PKR 60 million and you are a filer, advance tax is 2% of the FMV → PKR 1.2 million.
📌 2. Advance Income Tax on Sale/Transfer of Immovable Property – Section 236C
This tax is collected from the seller/transferor based on the gross sale consideration received.
🧾 Rates (Tax Year 2026)
Sale Consideration (PKR) Filer Late Filer Non-Filer
≤ 50 million 4.5% 7.5% 11.5%
> 50 million to ≤ 100 million 5.0% 8.5% 11.5%
> 100 million 5.5% 9.5% 11.5%
• The non-filer rate has been standardized at 11.5% across slabs.
• Sellers (especially filers) face higher tax than buyers to boost revenue.
👉 Example: If a filer sells property for PKR 120 million, the withholding tax payable is 5.5% → PKR 6.6 million.
📌 3. Special Conditions for Overseas Pakistanis
• Even if a person is not technically a filer, if they are a non-resident (stay < 183 days in Pakistan) and hold POC/NICOP, they can qualify for the filer tax rates under Sections 236C and 236K — provided the conditions are satisfied and reflected in the FBR’s system.
📌 4. Why These Changes Matter
These 2025-26 amendments aim to:
✅ Encourage formal documentation and compliance — Filers pay significantly lower rates than non-filers.
✅ Stimulate property market activity — Reduced tax on purchase (especially for filers) lowers upfront cost.
✅ Increase revenue — Higher tax on sale side helps government collect more from transfers.
✅ Target non-compliance — Non-filers pay much higher tax, and additional restrictions (like barriers to certain financial transactions) apply in parallel policy efforts.
📌 5. Important Points
✔ These taxes are adjustable — meaning you can adjust them against your final tax liability for the year when filing returns.
✔ The rates apply per transaction at the time of property transfer/registration.
✔ Being a registered filer (ATL status) can save you large amounts in withholding.
📌 Summary Chart – Tax Year 2026
Transaction Filer Late Filer Non-Filer
Purchase (236K) ≤ 50m 1.5% 4.5% 10.5%
Purchase (236K) 50–100m 2.0% 5.5% 14.5%
Purchase (236K) > 100m 2.5% 6.5% 18.5%
Sale (236C) ≤ 50m 4.5% 7.5% 11.5%
Sale (236C) 50–100m 5.0% 8.5% 11.5%
Sale (236C) > 100m 5.5% 9.5% 11.5%
(All numbers in % of consideration or FMV.)
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