August 12, 2021 (MLN): National Clearing Company of Pakistan Limited (NCCPL) has notified all market participants that the capital gain tax (CGT) system has been amended for the year 2021-22 vide Finance Act 2021.
According to the notice, CGT rates will be 12.50 percent for active taxpayers list (ATL) investors and 25 percent for non-ATL investors on securities acquired on or after July 1, 2013 executed at Pakistan Stock Market (PSX). Zero percent CGT would be applicable on securities acquired before July 1, 2013 for all investors.
Zero percent CGT will be charged from all investors of Mutual Funds Association of Pakistan where the holding period of securities is more than four years. CGT of 10 percent for ATL investors and 20 percent for non-ATL investors will be applicable on stock funds for individuals and the corporate sector if dividend receipts of the fund are more than capital gains. CGT of 12.5 percent and 25 percent will be applicable on stock funds for individuals and corporate if dividend receipts of the fund are less than capital gains.
Similarly, a CGT of 10 percent for ATL and 20 percent for non-ATL will be collected from individual investors on funds other than stock funds. A tax rate of 25 percent and 50 percent will be applicable on funds other than stock funds for corporate investors appearing in ATL and non-ATL respectively.
While tax rates of 5 percent on ATL investors and 10 percent on non-ATL investors will be charged on future commodity contracts entered into by members of the Pakistan Mercantile Exchange (PMEX).
