The government of Pakistan has announced incentives for the builders and developers to make the construction industry thrive. The features of the incentives that are granted to the construction industry are as follow

The government has decided to measure the tax liability per square/yard feet upon quarterly installments.

All New and Incomplete projects can avail this opportunity till 31-12-2020

Registration of projects has to be finalized with FBR, online via IRIS portal.

Incomplete projects have to declare their status of progress and the project has to be completed till 30-9-2022

The government has excluded the withholding tax from products except for cement and steel.

Tax liability has been reduced to 90% on low-cost housing.

Dividends shall not be liable to tax if paid by builders and developers.  Besides this, no withholding tax shall be charged on the payment of dividends.

The government has provided much ease to the investor by declaring that capital investment in a new project shall not be questioned, in case

The company or AOP is registered between 17-4-2020 to 31-12-2020

The investment is made via crossed banking

The land is transferred by shareholder till 31-12-2020

The invested money is being used in the project

The project has to be completed by 30-9-2022

In case Builders

The grey structure has to be completed

In Case Developer

Landscaping has to be completed and roads have to be completed to the sub-grade level.

Minimum 50% plots have to be sold out and 40% sale receipts have to be received

In Case Plot is purchased before 31-12-2020 and the payment is also completed by this time via banking channel. And if the construction of the plot has been started before 31-12-2020 and will be completed before 30-9-2022.

In case the building is purchased from a registered project and the buyer is the first to purchase the building. The condition is only applicable if the building is purchased before 31-12-2020 and the payment is paid via the banking channel.

public office holders

Public companies

REITs Companies with exempted income

Proceeds of crime.

Furthermore, An exemption shall be granted for the one or first time on the capital tax on the sale of personal accommodation of size up to 500 square yard house or 4000 square feet apartment.

The government of Pakistan has given the status of industrial undertaking to the Construction Industry for the import of plants and machinery.

Tax on the auction of immovable property has been reduced to 5% from 10%.

CVT on immovable property and shares has been withdrawn in ICT.