Pakistan's Finance Act 2026 changed the buyer-side Section 236K advance-tax rates and removed the separate late-filer rule. FPN explains the current 1.5%–2.5% ATL rates, 10.5%–18.5% non-ATL rates, fair-market-value basis and what a Bahria Sky 2 buyer should verify before booking or transfer.
Swipe or scroll through all 3 images. Official documents are unedited; planning concepts and contextual images are clearly labelled.
The rate shown applies to the property's total fair market value in the applicable band; it is not a progressive marginal calculation. ATL means the buyer appears on FBR's Active Taxpayers' List at the relevant time.
| Fair market value | ATL buyer | Buyer not on ATL | Difference |
|---|---|---|---|
| Up to PKR 5 Crore | 1.5% | 10.5% | 9 percentage points |
| Above PKR 5 Crore to PKR 10 Crore | 2% | 14.5% | 12.5 percentage points |
| Above PKR 10 Crore | 2.5% | 18.5% | 16 percentage points |
These examples apply the statutory rates to assumed fair market values only. They are not unit quotations, and the taxable value may differ from the advertised price or booking statement.
| Illustrative FMV | ATL calculation | ATL tax | Non-ATL calculation | Non-ATL tax |
|---|---|---|---|---|
| PKR 1 Crore | PKR 1 Crore × 1.5% | PKR 1.50 Lakh | PKR 1 Crore × 10.5% | PKR 10.50 Lakh |
| PKR 1.50 Crore | PKR 1.50 Crore × 1.5% | PKR 2.25 Lakh | PKR 1.50 Crore × 10.5% | PKR 15.75 Lakh |
| PKR 3 Crore | PKR 3 Crore × 1.5% | PKR 4.50 Lakh | PKR 3 Crore × 10.5% | PKR 31.50 Lakh |
| PKR 5 Crore | PKR 5 Crore × 1.5% | PKR 7.50 Lakh | PKR 5 Crore × 10.5% | PKR 52.50 Lakh |
| PKR 7.50 Crore | PKR 7.50 Crore × 2% | PKR 15 Lakh | PKR 7.50 Crore × 14.5% | PKR 1.0875 Crore |
| PKR 12 Crore | PKR 12 Crore × 2.5% | PKR 30 Lakh | PKR 12 Crore × 18.5% | PKR 2.22 Crore |
A quoted property price alone is not enough to produce a reliable Section 236K demand.
| Document or check | Why it matters | Action before payment |
|---|---|---|
| Buyer ATL status | Determines whether the ATL or non-ATL rate applies | Check the current FBR ATL against the buyer's CNIC/NTN on the transaction date |
| Exact unit statement | Identifies unit, floor, gross/net area, price and premiums | Obtain a dated statement signed by the legal seller |
| Applicable FBR valuation | Section 68 sets the statutory fair-market-value floor | Match the exact location, property type and area to the current FBR notification |
| Instalment tax ledger | Section 236K can apply while instalments are collected before transfer | Ask for tax collected with each payment and cumulative credit |
| PSID / CPR or official receipt | Evidence is required to claim adjustable advance tax | Match buyer identity, tax section, amount and property details |
| Transfer-office computation | Other society, stamp, registration and transfer charges are separate | Request a line-by-line written cost sheet rather than a combined verbal total |
For a buyer appearing on FBR's Active Taxpayers' List, the Finance Act 2026 rates are 1.5% where fair market value does not exceed PKR 5 Crore, 2% above PKR 5 Crore up to PKR 10 Crore, and 2.5% above PKR 10 Crore.
The Tenth Schedule rates are 10.5%, 14.5% and 18.5% across the same fair-market-value bands. Confirm the buyer's live ATL position before the payment or transfer event.
The amended Income Tax Ordinance states that Rule 1A, which contained the separate late-filer withholding table, was omitted by the Finance Act 2026. Buyers should therefore verify current ATL status and obtain the transaction-date computation instead of relying on the old 4.5%, 5.5% or 6.5% table.
Not necessarily. Section 236K covers transfer registration and also provides for collection with instalments where transfer will occur after all instalments are paid. Obtain a written collection schedule and tax ledger for the exact booking.
No. Section 68 provides a statutory fair-market-value framework using FBR-notified values, or the relevant provincial/stamp-duty value where FBR has not set one. The taxable base cannot be assumed from a marketing price alone.
Yes, the amended Ordinance describes the tax collected under Section 236K as adjustable, subject to the taxpayer's circumstances and return. Preserve PSID/CPR evidence and consult a qualified tax adviser for credit treatment.
Finance Act 2026 substituted the ATL buyer table in Division XVIII and reduced the three rates to 1.5%, 2% and 2.5%. The amended law also marks the separate late-filer Rule 1A as omitted. This makes a buyer's live ATL position especially important: a person not appearing on the ATL can face a much higher Tenth Schedule rate.
Bahria Sky 2 is marketed by OZ Developers as a mixed-use project with apartments, shops, offices and penthouses on a multi-year plan. Section 236K does not wait only for a conventional registry: where payments are collected in instalments and transfer follows after full payment, the person collecting instalments is required to collect advance tax at the statutory rate. The proviso prevents a second collection at transfer where the full required amount has already been collected with instalments.
Section 68 allows FBR to notify fair market values for immovable property. If FBR has not notified a value for the relevant area, the value fixed by the district, provincial or stamp-duty authority is used under the statutory rule. The value used for Division XVIII cannot be below that statutory fair market value. A brochure total or discounted sale price is therefore not, by itself, a safe tax base.
At an illustrative PKR 1.50 Crore fair market value, the ATL advance tax is PKR 2.25 Lakh while the non-ATL amount is PKR 15.75 Lakh—a PKR 13.50 Lakh cash-flow difference. Because the tax is collected during the transaction and may be collected with instalments, the buyer should resolve ATL status and budget the cash requirement before issuing a token.
Request the booking form, legal seller identity, title and approval evidence, exact unit statement, complete 100% payment schedule, current inventory status and every additional charge. Then obtain a tax computation that shows the applicable fair market value, ATL status, Section 236K rate, collection timing and official payment evidence.
This guide explains federal law available on 25 August 2026 and uses assumed values only. It is not a quotation, tax return opinion, approval claim or guarantee that a particular unit is available. FBR valuations, ATL status, project terms and collection procedures can change. Verify the exact Bahria Sky 2 unit, statutory valuation and payable amount with FBR records, the legal seller, the transfer authority and a qualified tax adviser before payment.
Prepared on 25 August 2026 from the Federal Board of Revenue's Income Tax Ordinance, 2001 amended up to 30 June 2026 and the Finance Act 2026. Division XVIII of Part IV sets current Section 236K rates of 1.5%, 2% and 2.5% for purchasers appearing on the Active Taxpayers' List (ATL), according to fair-market-value bands. The Tenth Schedule sets 10.5%, 14.5% and 18.5% for persons not appearing on the ATL. The amended Ordinance also records that Rule 1A—the separate late-filer withholding table introduced in 2024—was omitted by the Finance Act 2026. Section 236K covers registration/recording/attestation and, where an immovable property is paid by instalments before transfer, collection with instalments; the tax is adjustable, subject to the law and the taxpayer's circumstances. This guide is an illustration, not an exact tax demand or tax advice. Confirm ATL status, FBR valuation, collection timing and the current PSID/computation for the exact unit and transaction date. Information may change after publication; always obtain the latest official document before acting.
Friends Property Network is not responsible for project delays, non-delivery, possession delays, escalation or developer-imposed charges, approval changes, investment loss or developer default. Conduct independent legal, financial and technical due diligence before investing.