A Comprehensive Guide for Real Estate Taxes in Pakistan
Investing in real estate may seem easy but it requires many costs beyond the actual purchase price of the land. People who invest in real estate, buy homes, and those rent out property pay many different fees and taxes depending upon the location of the property and tax rate of the country. When it comes to Pakistan, we have to face many stages just for the payment of taxes. There are these real estate taxes that you need to focus on before purchasing any land in the country.
- Capital Value Tax (CVT)
- Capital Gain Tax (CGT)
- Transfer tax (the tax buyers pay whenever they make a purchase and change its ownership)
- Stamp Duty
Paying property taxes is like visiting your dentist or going to the same class over and over again that you don’t like but it is very important for the country’s economic condition and growth. Instead of paying taxes, if you start looking for the illegal ways that can save you from not paying taxes will get you caught into big troubles and you might have to face some legal actions by the Federal Board of Revenue (FBR). They get details of your every action regarding land purchases and hiding the details is just not an option. To avoid all these inconveniences, the best you can do is to study the tax rates, due dates for the payment of taxes, and also the rules and regulations that help pay taxes without any problem.
We very often see many Houses are for sale in DHA Lahore but how many times have you seen an organization guiding you completely about the sales taxes in detail? It is important to understand every fact and figure before investing a huge amount of money. Since the taxes are also relevantly high, many frauds in the market pretend to guide you for the tax payments yet leaves you clueless about the amount of money you have spent under the name of “Real Estate Taxes”.
Now we shall look at the rates of tax in Pakistan for your ease. The property tax that is imposed by the government of Punjab is 5% of the annual value of the land. To calculate the annual value of the property, estimate the amount your land would fetch if rented for 12 months. The amount you have received is the annual value of your property. Now you need to find out the tax payable amount that varies according to your land size and value. You can get the services of a good tax adviser to find out the amount you are payable to the FBR.
There are different methods to calculate tax value for the houses in DHA Lahore, Commercial buildings, rental properties, and plazas. The tax rates imposed by the Punjab government for commercial properties are relevantly different for “off” and “main” properties. To find out details regarding your tax expenses and other details visit ilaan.com and talk to our staff through live chat.