Islamabad, September 16, 2025 – The Federal Board of Revenue (FBR) has officially notified the applicable withholding tax rates on the transfer of immovable property for the tax year 2025-26.
The updated rates are designed to ensure documentation of real estate transactions and to discourage non-compliance by differentiating between taxpayers who are on the Active Taxpayers List (ATL), late filers, and non-ATL individuals.
According to the notification, withholding tax under Section 236C of the Income Tax Ordinance, 2001 will apply at the time of the sale or transfer of property. The rates vary depending on the value of the transaction and the filer’s status. For ATL persons, comparatively lower rates have been set to encourage compliance. Conversely, higher rates for non-ATL individuals are meant to penalize those who have not filed their returns.
The FBR explained that this step is part of a broader effort to increase revenue collection and bring more transparency into the real estate sector, where historically the transfer of property has often remained undocumented. By tightening the tax regime, the government aims to ensure that large real estate transactions contribute fairly to the national exchequer.
Below is the table of prescribed withholding tax rates for the tax year 2025-26:
| Section | Description | ATL Rate | Non-ATL Rate | Late Filer Rate |
| 236C | Transfer of Property ≤ Rs. 50m | 4.50% | 11.50% | 7.50% |
| 236C | Transfer of Property > Rs. 50m ≤ Rs. 100m | 5.00% | 11.50% | 8.50% |
| 236C | Transfer of Property > Rs. 100m | 5.50% | 11.50% | 9.50% |
Officials noted that the revised framework would not only improve compliance but also encourage proper declaration of assets at the time of property transfer.
(This information is based on the FBR’s official notification for the tax year 2025-26. The rates may be subject to amendments or clarifications by the authorities. Taxpayers are advised to consult the FBR or professional tax advisors before making any financial or property transfer decisions.)