If you’re planning to buy, sell, or transfer property in Pakistan, being on the Active Taxpayer List (ATL) can significantly reduce your tax burden.
Property Purchase Tax Benefits
| Activity | Filer | Non-Filer |
|---|---|---|
| Purchase of property (Over Rs. 5 million) | 2% | 4% |
| Property transfer tax | 1% | 2% |
- ✅ Filers pay only 2% advance tax on purchasing properties over Rs. 5 million.
- ❌ Non-filers pay double (4%) for the same transaction.
- ✅ On property transfer, filers pay just 1%, while non-filers pay 2%.
Important Update: As per the new Finance Act 2024, non-filers are not allowed to purchase any property exceeding Rs. 5 million. Only filers are eligible for high-value real estate transactions.
Government Auction Taxes
If you participate in government or corporate auctions:
- Filer: 10% tax on auctioned property or goods
- Non-Filer: 15% tax on the same
Summary of Filer Advantages in Property Deals:
- Lower advance tax on property purchase
- Reduced tax on property transfers
- Eligibility to purchase high-value properties
- Lower auction tax rates
- Enhanced access to financial services
Real Case Example:
A filer purchasing a Rs. 8 million property will pay Rs. 160,000 as advance tax. A non-filer, if eligible, would have to pay Rs. 320,000 — double the amount.
FAQs – Real Comments from Real Users
Q: I am a government employee and tax is deducted from my salary. Why am I still shown as a non-filer?
A: Tax deduction alone doesn’t make you a filer. You must file your annual tax returns and appear on the Active Taxpayer List (ATL).
Q: I purchased a plot worth Rs. 2 million. How much tax do I pay as a filer?
A: For a plot under Rs. 5 million, you may not be subject to the 2% advance tax, but you will pay 1% transfer tax and other provincial fees (e.g., stamp duty, district council fee).
Q: Can I claim a tax refund on a past property purchase if I become a filer now?
A: Yes, in many cases you can claim a refund if you file for the relevant tax year and meet the FBR conditions.
Q: I’m planning to buy a house worth Rs. 8 million before retirement. Do I need to be a filer?
A: Yes. As a non-filer, you are not allowed to purchase property worth over Rs. 5 million. You must file your tax returns and appear on ATL.
Don’t Overpay! Join the Filer Community Today
Save money on property buying, transferring, and auctions. Become a filer and enjoy legal and financial benefits across all property transactions in Pakistan.