Pakistan Tax Agency Issues Circular Clarifying Withholding Tax on Immovable Property Transactions by Builders, Developers

The Pakistani Federal Board of Revenue March 31 issued Circular No. 07 of 2025-26, clarifying withholding tax on immovable property transactions, for specified builders and developers under Income Tax Ordinance, 2001. The circular clarifies that: 1) for taxpayers covered by the ordinance’s special regime for tax on builders and developers, deductions under the ordinance’s provision on advance tax on sales or transfers of immovable property creates an additional liquidity burden for them; and 2) taxpayers that have discharged their tax liability under the regime and lack other income chargeable to tax under the ordinance can, therefore, apply to the Commissioner ...