ISLAMABAD: The Federal Board of Revenue (FBR) from July 1, 2023, implemented upward revised rates of withholding taxes on buying and selling of immovable properties under the Finance Act 2023.

In this connection, the FBR’s field formations have enforced the revised rates across the country.

The rates of withholding tax under sections 236C (Advance Tax on sale or transfer of immovable Property) and 236 K (advance tax on purchase or transfer of immovable property) have been increased.

Immovable properties: Tax authorities issuing ‘super tax’ notices

The rate of withholding tax for filers of income tax returns has been increased from 2 percent to 3 percent under section 236 C (Advance Tax on sale or transfer of immovable Property).

The rate of withholding tax for non-filers of income tax returns has been raised from 4 percent to 6 percent under section 236 C (advance tax on sale or transfer of immovable Property).

The rate of withholding tax for filers has been increased from 2 percent to 3 percent under section 236 K (advance tax on purchase or transfer of immovable property).

Details revealed that the rate of withholding tax for non-filers has been further raised from 7 percent to 10.5 percent under section 236 K (advance tax on purchase or transfer of immovable property). Under the Finance Act 2023, by virtue of amendment made through the Finance Act 2023 changes have been made in the rates of advance income tax collected under section 236C and 236K of the Income Tax Ordinance 2001.

As per FBR’s field instructions, under section 236(c) of the rate of advance tax would be 3 percent for filers and 6 percent for non-filers.

The new rates under section 236K, the advance tax at the rate of 3 percent would be collected from filers and 10.5 percent from non-filers.

The FBR’s field formations have also asked its relevant zones to apply the new rates from July 1, 2023.

Copyright Business Recorder, 2023