/news/fbr-issues-details-on-tax-amnesty-scheme-property-taxes.html
FBR issues details on tax amnesty scheme, property taxes - Zameen News

FBR issues details on tax amnesty scheme, property taxes

December 9, 2016 • news

fbr

The Federal Board of Revenue (FBR) has issued a notification to explain the recently approved tax amnesty scheme for the real estate sector of Pakistan.

Per the notification, those looking to whiten their money would be required to pay regular taxes on property transactions and also a 3% tax on the difference between the property prices notified in FBR valuation tables and the rates recorded by the property registration authority in transfer documents.

Those availing the tax amnesty scheme would not be asked about the source of their income. In case the difference between the stated DC rate and the FBR rate is zero, the board would inquire about the source of income.

For the purpose of property tax calculation, the higher of the DC rate and the FBR rate of property would be considered. If the stated rate of property is less than the DC Rate, the tax authorities would consider the DC rate to calculate provincial taxes on property. On the other hand, if the stated rate of property is less than the FBR rate, the tax authorities will consider the FBR rate for the purpose of federal property tax calculation.

In addition to that, as per Section 236K of the Income Tax Ordinance 2001, tax-filing property buyers will pay 2% Advance Tax while non-filers will pay 4%. At the time of property transfer, property sellers registered as tax filers will pay 1% Advance Tax while non-filers will pay 2%.

FBR has also instructed the officers concerned to brief the staff at the tax collection offices about property taxes, for which the board has already sent its teams.