Govt cuts capital gains tax for non-filers by 50%

July 20, 2024 (MLN): In an unexpected move, the government has slashed the capital gains tax (CGT) rates for non-filers by half on securities acquired during the last two years.

According to a notice issued by the National Clearing Company of Pakistan (NCCPL), the tax rates on capital gains for securities acquired between July 01, 2022, and June 30, 2024, have been reduced by 50% for all holding period categories for non-filers.

This reduction brings the tax rate for non-filers in line with that of investors appearing in the active taxpayer list (ATL). Previously, it was double.

Below are the market-wise applicable CGT rates for investors not appearing in the ATL, compared to the previous year's rates:

Note: Tax Year 2024 was effective from July 01, 2023.

The rates are the same for investors appearing in the ATL across all holding period categories for securities acquired in the last two years, unchanged from the rates in tax year 2024.

It is worth noting that for securities acquired on or after the first day of July 2024, filers will pay a flat 15% tax, while non-filers will pay standard tax rates with a minimum of 15% and a maximum of 45%.

Furthermore, a CGT rate of 29% will be applied to the corporates that are not appearing in ATL unless details regarding small company status and necessary documentation are submitted to NCCPL.

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