SRO likely by January 20-25: FBR may start collecting two percent WHT on property deals
The Federal Board of Revenue (FBR) is likely to fix January 20-25 - the date for collection of 2 percent withholding tax on the purchase or transfer of immovable property from non-filers of income tax returns.
Copyright Business Recorder, 2015
Sources told Business Recorder here on Thursday that the FBR is expected to issue an SRO to specify a date for charging 2 percent withholding tax on purchase or transfer of immovable property from non-filers of income tax returns. If the proposed amendment is approved, the government would start collecting 2 percent withholding tax on purchase or transfer of immovable property from non-filers of income tax returns. The date could be January 20 or any other date of remaining days of current month for charging enhanced rate of withholding tax from non-filers of returns.
So far the FBR is charging withholding tax at the uniform rate of one percent of the value of the property if the purchaser is a filer or non-filer of return. As now the FBR has issued taxpayer cards to the filers of returns, the non-filers would be subjected to 2 percent tax on purchase of immovable property as per Finance Act, 2014.
Sources said that the persons not having cards issued by NADRA would be subject to a double rate of withholding tax on purchase of property.