NCCPL informs about amended CGT rates to investors

NCCPL informs about amended CGT rates to investors

KARACHI: National Clearing Company of Pakistan (NCCPL) on Thursday shared updated capital gain tax (CGT) rates that are applicable from July 01, 2021.

The NCCPL in a notice to all market participants informed about the amendments in CGT system brought through Finance Act, 2021.

The applicable capital gain tax rates for the year 2021-2022 as amended through Finance Act, 2021 are mentioned below for reference:

Capital gain tax rates in case of Pakistan Stock Exchange (PSX):

— Where the security is acquired before July 01, 2013, there shall be no CGT

— Where security is acquired on or after July 01, 2013 the CGT shall be 12.5 per cent. However the CGT shall be 25 per cent in case person is not on the Active Taxpayers List (ATL) issued by the Federal Board of Revenue (FBR).

Capital Gain Tax rates in case of Mutual Funds Association of Pakistan (MUFAP):

— Where the holding period of security is more than four years, there shall no tax.

— Stock Funds: for individuals, associations of persons and corporate – if dividend receipts of the fund are more than capital gains, the tax rate shall be 10 per cent. For persons not on the ATL the tax rate shall be 20 per cent.

— Stock Funds: For individuals, association of persons and corporate – if dividend receipts of the fund are less than capital gains, the tax rate shall be 12.5 per cent. However, the tax rate shall be 25 per cent for persons not appearing on the ATL.

— Other Funds: for individuals the CGT rate shall be 10 per cent and it shall be increased by 100 per cent i.e. 20 per cent for persons not appearing on the ATL.

— Other Funds: for corporate the CGT rate shall be 25 per cent. However, the tax rate shall be 50 per cent if the corporate entity is not on the ATL.

Capital Gain Tax rate in case of Pakistan Mercantile Exchange (PMEX)

— Future commodity contracts entered into by members of PMEX the CGT rate shall be 5 per cent. The tax rate shall be 10 per cent for persons not appearing on the ATL.

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