New Federal Excise Duty Rates on Property Transfers Announced by FBR
FED Rates on Property Transfers
The rate of Federal Excise Duty (FED) on property transfers has reached up to 7%.
Detailed Breakdown of FED Rates
Active Taxpayers List (ATL) Buyers
According to sources, the Federal Board of Revenue (FBR) will charge 3% FED on the first allotment or transfer of commercial property, open plots, or residential properties if the buyer’s name appears on the Active Taxpayers List (ATL).
Non-ATL Buyers with Late Tax Returns
The FED rate will be 5% of the total amount if the buyer has not filed an income tax return by the due date, as stated in the Tenth Schedule of the Income Tax Ordinance 2001.
Non-ATL Buyers
The FED rate will be 7% of the total amount if the buyer is not listed on the ATL as per Section 181A of the Income Tax Ordinance 2001 on the date of acquisition of the property.
Relevant Legislation
The Federal Excise Act 2005 applies to the allotment or transfer of commercial property and the first allotment or transfer of open plots or residential properties by any developer or builder, under FBR’s relevant conditions and restrictions.
Updated Legislation
The FBR has issued updated versions of the Sales Tax Act 1990 and the Federal Excise Act 2005 as of June 30, 2024, which include amendments made through the Finance Act 2024.
