Federal Excise Duty on Allotment or Transfer of Commercial and Residential Property in Pakistan.
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The Federal Excise Duty (FED) in Pakistan is levied on the allotment or transfer of commercial property and the first allotment or transfer of open plots or residential property by developers or builders. This duty is part of the government's efforts to regulate property transactions and ensure proper taxation on property transfers. The federal excise duty (FED) on the allotment or transfer of commercial property, as well as the first allotment or transfer of open plots or residential property by developers or builders, is structured as follows:
Applicable Properties:
Applicable Properties:
- Commercial property.
- First allotment or first transfer of open plots.
- First allotment or first transfer of residential property.
The Federal Excise Duty (FED) as described is applicable to buyers in the following scenarios:-
Allotment or Transfer of Commercial Property:
The FED is imposed on the buyer at the time of allotment or transfer of commercial property.
First Allotment or First Transfer of Open Plots or Residential Property:
The FED is applicable on the buyer at the time of the first allotment or first transfer of open plots or residential property.
The rates of Federal Excise Duty (FED) applicable to the buyer during the allotment or transfer of commercial property and the first allotment or transfer of open plots or residential property are as follows:
For Buyers on the Active Taxpayer List (ATL):
A 3% FED is imposed on the gross amount of the consideration involved if the buyer is on the Active Taxpayer List (ATL) maintained under section 181A of the Income Tax Ordinance, 2001, on the date of acquisition of the property.
For Buyers on Active Taxpayer List but but not appearing on the ATL on the date of acquisition (Late Filer):
A 5% FED is imposed on the gross amount of the consideration involved if the buyer has filed their income tax return by the due date as specified in the proviso to Rule 1A of the Tenth Schedule of the Income Tax Ordinance, 2001, but is not appearing on the ATL on the date of acquisition.
For Buyers (Non-Filer):
A 7% FED is imposed on the gross amount of the consideration involved if the buyer is not on the ATL and has also failed to file their income tax return by the specified due date.
Understanding the Federal Excise Duty on the allotment or transfer of property is crucial for both buyers and developers in Pakistan. Compliance with the ATL and timely tax filings can result in significant savings, while failure to do so can lead to higher taxes. Always consult with a tax professional or legal advisor to ensure compliance with the latest regulations.
Calculate Federal Excise Duty:
To calculate the Federal Board of Revenue (FBR) taxes and other property transfer-related expenses using the Transfer Expenses Calculator on dhapage.com, you can visit Transfer Expenses Calculator tool.
Transfer Expenses Calculator
A 3% FED is imposed on the gross amount of the consideration involved if the buyer is on the Active Taxpayer List (ATL) maintained under section 181A of the Income Tax Ordinance, 2001, on the date of acquisition of the property.
For Buyers on Active Taxpayer List but but not appearing on the ATL on the date of acquisition (Late Filer):
A 5% FED is imposed on the gross amount of the consideration involved if the buyer has filed their income tax return by the due date as specified in the proviso to Rule 1A of the Tenth Schedule of the Income Tax Ordinance, 2001, but is not appearing on the ATL on the date of acquisition.
For Buyers (Non-Filer):
A 7% FED is imposed on the gross amount of the consideration involved if the buyer is not on the ATL and has also failed to file their income tax return by the specified due date.
Understanding the Federal Excise Duty on the allotment or transfer of property is crucial for both buyers and developers in Pakistan. Compliance with the ATL and timely tax filings can result in significant savings, while failure to do so can lead to higher taxes. Always consult with a tax professional or legal advisor to ensure compliance with the latest regulations.
Calculate Federal Excise Duty:
To calculate the Federal Board of Revenue (FBR) taxes and other property transfer-related expenses using the Transfer Expenses Calculator on dhapage.com, you can visit Transfer Expenses Calculator tool.
Transfer Expenses Calculator