The Federal Board of Revenue (FBR) has raised the Withholding Tax (WHT) for both buyers and sellers of real estate by the new Finance Act 2023, which takes effect on July 1, 2023.
With the new Budget 2023-24, the rate of Withholding Tax (WHT) under Sections 236C (Advance Tax on Sale or Transfer of Immovable Property) and 236K (Advance Tax on Purchase or Transfer of Immovable Property) has been raised.
The new WHT on the transfer or sale of real estate for Filers has been raised from 2% to 3%, while Non-Filers will now have to pay 6% WHT, up from 4%.
Meanwhile, the Withholding Tax (WHT) rate on the acquisition of movable property has been raised from 2% to 3% for Filers, while Non-Filers will now be taxed 10.5 percent WHT on their buying of immovable property, up from 7%.
