Standard Capital Gains Tax Rate in Pakistan – 2025

Standard capital gains tax rate applies to profits earned from the sale of capital assets such as real estate (property), shares/securities, and mutual funds.

In 2024, major reforms were introduced to simplify the tax system, especially around property transactions and stock investments.

Here’s a complete breakdown of the latest capital gains tax rate, new vs old regimes, and key implications:

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Capital Gains Tax Rate on Property in Pakistan

New Regime (For Properties Acquired on or After July 1, 2024)

The holding period condition is removed, which means the time you hold a property before selling it no longer affects your tax rate.

Active Taxpayer List (ATL) Filers:
Flat 15% CGT, regardless of how long the property is held.
Non-ATL Filers:
Progressive tax rates apply based on total income. Minimum CGT is 15%, but the rate can increase depending on your income slab.

Implication: If you’re not on the ATL, your tax could be significantly higher. So, filing your taxes and staying on ATL is now more important than ever.

Old Regime (For Properties Acquired on or Before June 30, 2024)

Under the old regime, the CGT was based on the holding period and the type of property. The longer you held the property, the lower the tax. This applies to:

Open Plots
Constructed Property (e.g., houses)
Flats (e.g., apartments)
Here’s how the CGT varies:

Holding Period	Open Plots	Constructed Property	Flats
≤ 1 year	15%	15%	15%
1–2 years	12.5%	10%	7.5%
2–3 years	10%	7.5%	0%
3–4 years	7.5%	5%	–
4–5 years	5%	0%	–
5–6 years	2.5%	–	–
6+ years	0%	–	–

Key Takeaway: If you bought your property before July 2024, your CGT depends on how long you’ve owned the property. Holding it longer reduces your tax liability significantly.

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Capital Gains Tax on Shares in Pakistan

CGT on securities remains relatively straightforward but varies based on when the investment was acquired.

Standard CGT Rate

Flat 15% on gains from the sale of most listed securities.

Exceptions Based on Acquisition Date

Securities acquired before July 1, 2013:
0% CGT if held for more than 6 years.
Securities acquired between July 1, 2013, June 30, 2022:
12.5% flat CGT (holding period doesn’t matter).

Capital gain tax on mutual funds in Pakistan (Based on Fund Type & Investor)

Fund Type	Individual/AOP Rate	Company Rate
Stock Funds	15%	15%
Other Funds	15%	25%

Note: ‘Other funds’ include income funds, money market funds, etc.

PMEX Commodity Contracts

A flat 5% CGT applies.

Non-Listed Shares

Subject to 10% advance tax on the Fair Market Value (FMV) at the time of transfer.

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Standard Capital Gains Tax Rate on Sale of Gold

Many people in Pakistan are being told by the FBR Helpline that capital gains (profits) from selling gold are not taxable, but this is wrong.

According to Pakistan’s Income Tax Ordinance, if you make a profit by selling gold (for example, buying gold at a lower price and selling it at a higher price), that profit is considered part of your taxable income, and you have to pay tax on it.

What Tax Rate Applies to Gold Profits?

There is no separate tax rate just for gold in the law. So, the profit you make from gold is added to your total annual income, and tax is calculated on the full amount based on these income slabs (for the tax year starting July 1, 2024, to June 30, 2025):

Your Total Annual Income	Tax You Will Pay
Up to PKR 600,000	0% (No tax)
600,001 – 1,200,000	15% on the amount above 600,000
1,200,001 – 1,600,000	PKR 90,000 + 20% on the amount above 1.2M
1,600,001 – 3,200,000	PKR 170,000 + 30% on the amount above 1.6M
3,200,001 – 5,600,000	PKR 650,000 + 40% on amount above 3.2M
5,600,001 and above	PKR 1,610,000 + 45% on amount above 5.6M

Key Capital Gains Tax Changes in 2024

1. Holding Period Eliminated for New Property Acquisitions

The biggest shift is the removal of the holding period condition for properties purchased on or after July 1, 2024. Now, a flat 15% CGT applies for ATL filers, no matter how long you keep the property.

2. ATL Status Becomes Critical

Your inclusion in the Active Taxpayers List is more important than ever. ATL filers get the benefit of flat and lower tax rates, while non-ATL individuals face higher progressive rates.

3. Alignment Between Property and Securities

With the 15% CGT flat rate now applying to both real estate and stock investments (post-July 2024), the government is aiming to streamline the tax system and reduce loopholes.

How Does This Affect You?

If You’re Selling Property

Bought before July 1, 2024: Check the applicable tax based on the type and holding period.
Bought after July 1, 2024:
- Are you on the ATL? You’ll pay 15% flat.
- Not on ATL? Expect a progressive income tax rate, which could be higher.

If You’re Investing in Stocks or Mutual Funds

Standard CGT is 15%, but older acquisitions have different rates.
Mutual fund investors need to watch the type of fund and whether they’re investing as individuals or companies.

If You’re Dealing with Unlisted Companies

There may be special withholding rules or advance tax implications. Always check FMV-based calculations and documentation.

FAQs

Capital gains are the profits you make when you sell something for more than you bought it for.

Example:

You buy a plot in Karachi for PKR 1,000,000.
After a few years, you sell it for PKR 1,500,000.
Your capital gain is PKR 500,000.

Capital Gains Tax is the tax you pay on the profit you earn when you sell a property, stock, or any other capital asset.

So if you made a gain of PKR 500,000 on selling your plot, you’ll pay a percentage of that amount as tax, based on how long you held the asset before selling.

If you hold an asset for a longer period before selling (like over 1 year or more), it is considered a long-term capital gain.

In Pakistan:

For property, if you sell after 4 years, there’s no CGT at all.
So long-term = less or no tax
For stocks, if you hold for more than 1 year, CGT is lower (even 0% in some cases).

If you sell your asset quickly, like within 1 year, the profit is called a short-term capital gain, and it’s taxed at a higher rate.

In Pakistan:

Selling property within 1 year can lead to CGT as high as 15%.
For stocks, selling before 1 year means you may pay around 15% tax on your gain.

Subtract the cost price from the selling price to find out the capital gain.

Formula:

Capital Gain = Selling Price – Purchase Price

Moreover, you can use the standard capital gain tax rate Calculator in Pakistan to calculate your capital gain tax

Final Thoughts

The 2024 standard capital gains tax reforms are designed to:

Simplify the tax system
Align capital gains taxation across asset types
Encourage tax compliance by offering benefits to ATL filers
If you’re planning to buy or sell property or invest in securities, it’s essential to:
Understand whether the new or old regime applies to your asset
Stay on the ATL to benefit from flat and lower tax rates
Keep accurate records of acquisition dates, FMV, and investment types

You can consult a tax consultant in Pakistan for more information on how to avoid capital gains tax CGT in pakistan.

References