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Latest Taxes on Property in Pakistan

What is the Latest FBR Property Valuation Rates 2022

What is the Latest FBR Property Valuation Rates 2022:. Federal Board of Revenue (FBR) issues Immovable Property valuation rates of different cities of Pakistan. FBR’s these property valuation rates are near to market rates in those cities. Separate SROs are issued by FBR, for each city’s updated FBR Property Valuation rates. SRO contains the following information:

  • Area wise Valuation ( place, town, circle, road side area, market area, shops area )
  • Value of Commercial property per Marla ( in Rupees )
  • Value of Residential property per Marla ( in Rupees )

Following the link to the FBR Property Valuation Rates in different cities

https://fbr.gov.pk/valuation-of-immovable-properties/51147/131220

What is the Difference between FBR’s Property Valuation Rates & DC Rates

FBR issues it’s property valuation rates which are near to Fair Market Values of Commercial & Residential Properties in different cities. Whenever, FBR determines these rates, proper teams are nominated who get information and data about actual property rates. Afterwards, these suggested rates are published by FBR for comments from stake holders. Whenever, all stake holders are agreed then finally FBR’s property valuation rates are issued through SROs.

 

 

DC rate, which is used for stamp duty purposes and at this rate property is registered with Property Registration Authorities.

Types of valuation of real estate

Immovable properties are sometimes valued in three different ways:

  • DC rate is used for calculation of stamp duty purposes. Moreover, at this rate property is also registered with Property Registration Authorities, like LDA, KDA, etc.,
  • FBR Property Valuation Rate; This is a fair market value of the property at which amount of Withholding Tax is calculated according to their “filer” and “nonfiler” status, like Income Tax on Purchase of Property under section 236K.
  • The actual market rate, at this rate transaction of property purchase/sale is done. It is normally higher than the DC rate and FBR Property Valuation Rate.

What are the Income Tax Rates and Duties on Property Registration

At the time of registration of properties with registration authorities following taxes and duties are charged:

  • Stamp Duty, is calculated on the DC Rates. The buyer of the property pays for it. The rate of duty for the filers is 1% and for Non-filer it is 2%.
  • Income Tax on Purchase of Property Under Section 236K, is calculated on the FBR Rates of Property. The buyer of the property pays for it. The rate of tax for the filers is 2% and for Non-filer it is 7%.
  • Income Tax on Sale of Property Under Section 236C, is calculated on the Gross Consideration Received. The Seller of the property pays for it. The rate of tax for the filers is 2% and for Non-filer it is 4%.

Note: Stamp duty is applicable in provinces only.

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