Pakistan

Major developments in the tax laws through Finance Act, 2024 relating to 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 incidence for non-filers is considerably enhanced for transactions relating to immovable properties besides adding a new category of taxpayers whose names are on Active Taxpayers' List but they filed the returns after the due date or extended date.
• Individuals and Associations of Persons (AOPs) with taxable income exceeding 10 million Pakistani rupees (PKR) in a year must pay a surcharge equal to 10% of their income tax.
• Federal Board of Revenue (FBR) now has the authority to restrict foreign travel for Pakistani citizens who are not on the Active Taxpayers' List. This includes provisions to disable mobile phones, discontinue utility connections, and impose travel restrictions, with exemptions for certain individuals like NICOP holders, minors, students, and those traveling for Hajj or Umrah, as determined by the FBR.
• Capital gains relating to immovable properties are to be taxed without regard to the holding period for acquisitions on 1 July 2024 and onwards (please see the Income determination section for details).
• The concept of holding period is abolished for capital gains relating to securities acquired on or after 1 July 2024, with separate rates prescribed for filers and non-filers (please see the Income determination section for details).