This is with reference to the amendments made in the Income Tax Ordinance, 2001 through Finance Act 2017. In this regard, the amendments pertaining to the Capital Gain Tax (“CGT”) Regime implemented through National Clearing Company of Pakistan Limited (“NCCPL”) are listed below and they shall be effective from July 01, 2017:
- Revision of Holding Period and Tax Rates for Filer and Non-Filer
Tax rates to be paid under section 37A on disposal of securities listed on Pakistan Stock Exchange (“PSX”) shall be as follows:
|
Holding Period |
Tax Year 2017 |
Tax Year 2018 |
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|
Securities Acquired before July 1, 2016 |
Securities Acquired before July 1, 2016 |
Securities Acquired on or after July 1, 2016 |
Securities Acquired on or after July 1, 2016 |
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|
Filer |
Non-Filer |
Filer |
Non-Filer |
Filer |
Non-Filer |
|
|
Tax Rate |
Tax Rate |
Tax Rate |
Tax Rate |
Tax Rate |
Tax Rate |
|
|
Where holding period of a security is twelve months or more but less twenty-four |
15% |
18% |
15% |
18% |
15% |
20% |
|
Where holding period of a security is twelve months or more but less twenty-four months |
12.5% |
16% |
12.5% |
16% |
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|
Where holding period of a security is twenty four months or more but the security was acquired on or after 1st July, 2013 |
7.5% |
11% |
7.5% |
11% |
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|
Where the security was acquired before 1st July, 2013 |
0% |
0% |
0% |
0% |
0% |
0% |
Furthermore, tax rate of cash settled derivates traded on PSX for the tax years 2018 to 2020 shall be 5%.
