Pakistan

Major developments in the tax laws through Finance Act, 2023 relating to the individuals are summarised as follows:

• The income tax slab rates for the non-corporate sector have been increased (please see the Taxes on personal income section for details).
• Tax on value of capital assets in Pakistan was introduced through Finance Act, 2022 at a rate of 1%, applicable on the fair market value of certain immovable properties of resident individuals situated in Pakistan. Certain specified immovable properties were excluded from the purview of this tax. The benefit of such exclusion is now restricted to only active taxpayers. For details, please see Tax on value of capital assets in Pakistan in the Other taxes section.

• Reintroduction of 0.6% advance income tax on cash withdrawals by non-filers.
• The rate of advance income tax to be collected from buyers or sellers on purchase / sale / transfer of property has been increased from 2% to 3%. For those not appearing on the Active Taxpayer’s List (ATL), the rates are enhanced from 7% to 10.5% on purchase and from 4% to 6% on sale of property.
• The rate of income tax on capital gain arising on sale of securities acquired before 1 July 2013 is reduced from 12.5 % to 0%.