FBR allows listed firms to carry forward CGT losses

Shahnawaz AkhterWeb Editor

24th Jun, 2021. 05:11 pm

KARACHI: The Federal Board of Revenue (FBR) on Thursday notified the rules for carry forward losses by the listed companies for calculation of capital gains tax.

The FBR issued SRO 801(I)/2021 to make amendments in the Income Tax Rules, 2002 and allow it to carry forward losses next year to calculate the capital gains tax.

Through the notification, the tax authorities said the capital loss arising on the disposal of listed securities in the tax year 2019 would be carried forward to the following tax year but not more than three years.

The revenue body said, under the rules, the National Clearing Company Pakistan Limited (NCCPL) would carry forward the eligible capital loss from the previous tax years by a taxpayer whose name had appeared in the Active Taxpayers List (ATL).

The FBR also said the adjustment of the carried forward capital losses would be made on a monthly basis by the NCCPL from the first month of the updated ATL for that tax year and on the first-in first-out (FIFO) basis

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