Islamabad: The Federal Board of Revenue (FBR) is expected to introduce a simple fixed-tax regime for real estate developers in the coming week, according to news sources. As per officials, an additional tax of PKR 210 per square foot will be imposed on the builders involved in commercial construction efforts across the country. However, the construction rates for residential structures will vary from city to city.
As per reports, the government is expected to waive 90% taxes on the low-cost housing construction projects introduced countrywide. The beneficiaries of this scheme will be governed by a centralised action plan, which will be linked with the FBR through an automated system.
The tax return filing system will be simplified and an evaluation of the project would be made through the estimation cost of the project and tax will be imposed accordingly. A committee will resolve any disagreements.
Any project, encompassing less than 5,000 square feet will be exempted from these requirements.
All builders and developers will be required to file their returns as per Builders/Developers Special Procedure Rules 2019, applicable on all individual developers, builders, association of persons and real estate firms.
The beneficiaries of this simple tax regime will not be able to file withholding tax adjustment claims and will register taxes through the IRIS system to the taxation authority.