Tax Year 2027

Tax Guide for Real Estate Businesses

Property taxation, capital gains tax and advance tax on property transactions.

Key Tax Obligations

What You Need to Stay Compliant

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Property Taxation

Income tax on rental income and gains from property dealing.

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Capital Gains Tax

Tax on gains from the sale of immovable property, based on holding period.

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Advance Tax on Transactions

Advance tax applies on both the purchase and sale of property.

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ATL Benefits

Active Taxpayers pay significantly lower advance tax rates on property deals.

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Proper Documentation

Sale deeds, valuation records and banking proof for every transaction.

Registration Note

Registrations That Typically Apply

Real estate dealers and developers typically need FBR registration (NTN & ATL); developers operating as companies also need SECP registration, and larger projects may require provincial authority registrations.

Deductions

Areas to Plan Around

  • Property acquisition & development costs
  • Brokerage & agency fees
  • Legal & registration charges
  • Marketing costs
  • Maintenance & management expenses
Avoid These

Common Mistakes to Avoid

  • Not maintaining ATL status before transactions
  • Incomplete transaction documentation
  • Under-declaring sale value
  • Late filing of capital gains
  • Mixing personal & project funds
Stay Ahead

Tips to Stay Compliant

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