The federal government is set to give taxpayers who have held a property for personal use for at least 20 years a major relief in Advance Tax.
Previously, no exemption existed from advance tax on the sale or transfer of immovable property, even in cases where long- term holding made the capital gain exempt under section 37. This created an unnecessary tax burden on genuine, long- term property holders.
Now, taxpayers who have held a property for personal use for at least 20 years, and have duly declared it in their tax returns from tax year 2014 onwards, will be able to apply to the Commissioner for exemption from advance tax under section 236C of the Ordinance.