Karachi July 21 2022: National Clearing Company of Pakistan Limited (NCCPL) issued details of applicable capital gain tax rates effective from July 1, 2022 as per Finance Act 2022.
Under the new taxation act, where the security is acquired on or before June 30, 2022 capital gain tax will be charged at a rate of 12.5% for investors appearing in Active Taxpayer List (ATL) and 25.0% for those Investors not appearing in ATL.
These CGT rates are 2.5% lower for ATL and 5% for those Investors not appearing in ATL.
For ATL, Where the security is acquired on or after July 1, 2022, CGT will be charged at 15.0% if where the holding period does not exceed one year, 12.5% CGT where the holding period exceeds one year but does not exceed two years, 10.0% CGT where the holding period exceeds two years but does not exceed three years, 7.5% CGT where the holding period exceeds three years but does not exceed four years, 5.0% CGT where the holding period exceeds four years but does not exceed five years, 2.5% CGT where the holding period exceeds five years but does not exceed six years and zero percent where the holding period exceeds six years.
For Investors not appearing in ATL, Where the security is acquired on or after July 1, 2022, CGT will be charged at 30.0% if where the holding period does not exceed one year, 25.0% CGT where the holding period exceeds one year but does not exceed two years, 20.0% CGT where the holding period exceeds two years but does not exceed three years, 15% CGT where the holding period exceeds three years but does not exceed four years, 10.0% CGT where the holding period exceeds four years but does not exceed five years, 5.0% CGT where the holding period exceeds five years but does not exceed six years and zero percent where the holding period exceeds six years.
Future commodity contracts entered into by members of Pakistan Mercantile Exchange will be taxed at 5% for ATL and 10% for Investors not appearing in ATL.
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