The Finance Act 2024 has eliminated the concept of a holding term for immovable assets acquired on or after July 1, 2024, according to a statement released by the Federal Board of Revenue (FBR).
Gain tax will be applied to properties bought on or after July 1, 2024, at a rate of 15% for filers and higher for non-filers.
FBR has clarified, though, that homes purchased prior to July 1st will be governed under the previous formula.
The FBR has released an income tax circular stating that earnings from the sale of real estate located in Pakistan would henceforth be subject to capital gains tax at the rates listed in the First Schedule.
Before the Finance Act 2024, open plots, completed properties, and apartments had a maximum rate of 15% taxation on gains if the holding term was shorter than a year.
Plots held for more than six years, completed properties held for more than four years, and apartments owned for more than two years saw a decline in the rate as the holding period extended, reaching 0% for each.
