NCCPL publishes capital gains, tax rates

NCCPL (National Clearing Company of Pakistan Limited) has made changes in the Capital Gain Tax (“CGT”) System vide Finance Act, 2021, Per the announcement of the budget.

For the years 2021 and 2022, the capital gain tax has increased for investors that are not appearing in the FBR ATL (Active Taxpayer List), as per the notice of NCCPL. To expand the number of taxpayers the government made the decision.

According to the announcement, no CGT will be charged to investors at the Pakistan Stock Exchange (PSX) who purchased securities before July 1, 2013. Investors appearing in ATL will have to pay 12.50 percent CGT on securities acquired on or after July 1, 2013, while investors not appearing in ATL will pay 25.00 percent CGT.

If the security is held for longer than four years, no CGT will be charged for mutual funds investors. Whereas, for people, associations of persons, and corporations trading in stock funds, if the fund’s dividend receipts exceed capital gains, a CGT of 10.00 percent will be imposed on ATL investors, while a CGT of 20.00 percent will be imposed on non-ATL investors.

KE stated, “Bill of over Rs25,000 per month: 7.5pc tax on non-filers effective from July 1”.

Individuals, partnerships, and corporations dealing in stock funds will face a 12.50 percent CGT if dividend receipts are smaller than capital gains, whilst non-taxpayers will face a CGT of 25.00 percent.

Whereas people who are associated with other funds CGT of 10.00% will be applicable on investors that are taxpayers, while who are non-taxpayers CGT of 20.00% will be applied on them. However, for corporate dealing in other funds, on taxpaying investors, 25.00% of CGT will be applicable and 50.00% on non-taxpayers.

According to the notice, a 5.00 percent CGT will be applied to investors appearing in ATL for future commodity contracts put into by members of the Pakistan Mercantile Exchange, while a CGT of 10.00 percent would be applied to investors not appearing in ATL.

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