ISLAMABAD: The old rates of withholding tax will shall remain applicable on sale and purchase of immovable properties till the establishment of new directorate to ascertain fair market valuation.
According to withholding tax rate card for tax year 2019, the new tax rate for sale and purchase of immovable properties will be applicable with the official notification to set up Directorate of Immovable Properties.
Through Finance Act, 2018 the government revamped the tax rate on property transactions and withdraw the levy of taxes through various provisions.
The withholding tax on immovable properties has been deduction under 236C, 236K and 236W. These provisions was to be deleted from July 01, 2018 and replaced by Section 230F.
According to new withholding tax rate card, filers and non-filers will pay withholding tax rate at one percent and two percent, respectively at the time of registering, recording or attesting transfer of any immovable properties.
As per section 230F(23) read with section 230F(22), the Sections- 236C, section 236W,Section 111(4)(c) – and the Division X of Part IV of the First Schedule, shall not be applicable with effect from the date, Federal Government so appoints by notification in the official Gazette., for this purpose.
Similarly, the withholding tax rate to be applicable at two percent and four percent on filer and non-filers at the time of purchase where value of immovable property is more than four millions rupees.
The tax rate at three percent under section 236W will also be applicable on purchase or transfer of immovable properties.
For detailed withholding tax rates for tax year 2019 please visit: FBR issues withholding tax card for year 2018/2019