FAQs Pakistan Taxation Real Estate

What is Capital Value Tax in Pakistan?

Capital Value Tax on Real Estate Related Transactions in Pakistan

 A Capital value tax at the rate of 2 percent of recorded value has been levied vide Finance Act, 2006. This is applicable in urban areas for residential property exceeding an area of one kanal and in case of commercial properties without any threshold of land area or size of the property. However, where the value of such property is not recorded, the CVT is payable at Rs. 50 per square yard of land area. All transfers falling under the scope of purchase, gift, exchange, surrender, power of attorney and relinquishing the rights have been subjected to the capital value tax. However, transactions between spouses, parents, grand parents, brothers and sisters through gift and inheritance have been excluded from its purview.

13 Replies to “What is Capital Value Tax in Pakistan?

  1. who is to pay capital valu tax the seller of a plot who is actually the owner of the said plot . or the buyer who will become after the sale deed is finally executed.syedanwar jamil at gmail.com.plz advise

  2. Hi sir.
    Is capital value tax applicable on purchasing of 6th marla house?
    If yes then how many percentage on property value.

  3. If you are buying a plot in installments, when are you suppose to pay the Capital value tax? In the beginning, or in the end?

  4. Dear Mr Masood — Upon purchase the buyer will pay the CVT, when the buyer files their return at the end of year — does he show this CVT ? if yes in which row and also in this CVT refundable or adjustable from total income liable for taxation ?

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