FBR requires owners of immovable property to submit form deemed tax

The Federal Board of Revenue (FBR) in Islamabad says that people who own more than two immovable properties have until December 31 to fill out a form for the deemed tax on those properties. This was reported by news sources on November 24.

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The deemed tax will be 5% of the fair market value of the property, and the tax rate on this kind of income will be 20%. Starting with the tax year 2022, residents of Pakistan who own immovable property will have to pay taxes on their deemed income. This is because the government has passed laws that make this happen. The government has made it a requirement to fill out the form. Even people who have already turned in their taxes must fill out the deemed tax form by the end of 2022. Section 7E of the Income Tax Ordinance says that taxpayers must give information on all types of immovable property, including agricultural, industrial, residential, and commercial property, as well as the total amount of presumed taxable assets and deemed income.

It’s important to remember that FBR has set a tax goal of PKR 7.4 trillion, which means that different types of taxes will need to be changed in different areas. To meet its tax revenue goals, the government has already set up different tax systems for people who file taxes and people who don’t.