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| Purchase Price | PKR 5,000,000 |
| Sale Price | PKR 8,000,000 |
| Capital Gain | PKR 3,000,000 |
| CGT Rate | 0% |
| Tax Payable | PKR 0 |
CGT on immovable property held for 4+ years is exempt. Rates vary by holding period and asset type as per FBR.
Capital Gains Tax (CGT) in Pakistan applies to the profit you make when selling immovable property, listed company shares, or other assets. The rate you pay depends heavily on how long you held the asset — property held for 4 or more years is fully exempt from CGT under current FBR rules.
Enter the purchase price, sale price, holding period, and any improvement costs. The calculator applies the correct FBR 2025 CGT rate for your asset type and holding period to show your exact tax liability. Understanding this before you sell can save you significant amounts — for example, waiting a few extra months to cross a holding period threshold could reduce your CGT rate from 12.5% to 10%.
15% down to 0% — based on years held (4+ years = exempt)
Listed PSX shares — collected by NCCPL at settlement
Renovation costs deducted from capital gain automatically
CGT rates on immovable property under FBR 2025: 15% — held less than 1 year | 12.5% — 1 to 2 years | 10% — 2 to 3 years | 7.5% — 3 to 4 years | 0% (fully exempt) — held 4 or more years. These rates apply to the net capital gain (sale price minus purchase price minus documented improvement costs).
Yes. Under current FBR rules, immovable property held for 4 or more years is completely exempt from Capital Gains Tax. This is one of Pakistan's most significant property investment incentives. If you are close to the 4-year mark, waiting to sell can save you 7.5% tax on your entire capital gain — a significant amount on higher-value properties.
For inherited property, the holding period for CGT purposes starts from the date of the original owner's death, not from when the original owner purchased the property. So if your parent bought land in 2005 and passed away in 2022, and you sell in 2024, your holding period is only 2 years — CGT applies at 10%. This is a commonly misunderstood rule that surprises many heirs.
Yes. Genuine, documented improvement costs — boundary wall construction, additional rooms, renovation works, legal costs for the purchase, and agent commissions — can all be deducted from your capital gain. The formula is: Capital Gain = Sale Price − Purchase Price − Improvement Costs. Keep all receipts, contractor agreements, and bank transfer records as FBR may request proof.
CGT in Pakistan is calculated only on the capital gain (profit) — not the full sale price. If you bought property for PKR 5,000,000 and sold for PKR 8,000,000 with PKR 300,000 improvement costs, your capital gain is PKR 2,700,000. CGT is calculated on this PKR 2,700,000 at the applicable rate — not on the PKR 8,000,000 sale price.
Yes. CGT on shares listed on the Pakistan Stock Exchange (PSX) is automatically collected by NCCPL (National Clearing Company of Pakistan) at settlement. You do not need to calculate or pay it separately. However, you must still declare it in your annual income tax return. Rates are: 15% (under 1 year), 12.5% (1–2 years), 10% (2–3 years), 7.5% (3–4 years), 5% (4+ years).
CGT is tax on the seller's profit from the property transaction. Advance Tax (Section 236C/236K) is a withholding tax collected on the gross value of the transaction — 3% for filers and 6% for non-filers on the sale side; 3% for filers and 4% for non-filers on the purchase side. Advance Tax is adjustable against your final tax liability in the annual return. Both CGT and Advance Tax apply simultaneously on property transactions.