Learn · Track 4: Costs, tax and zakat · lesson 2 of 3 · Beginner
Capital gains tax on shares Pakistan 2026
Capital gains tax on PSX shares is 15% for filers on shares bought from 1 July 2024. Non-filers pay more. NCCPL deducts it. Rates by date, losses, example.
Capital gains tax on shares in Pakistan (shares par tax) is charged under section 37A of the Income Tax Ordinance 2001. For shares bought on or after 1 July 2024, a person on FBR’s Active Taxpayers List (ATL) pays 15% of the gain, however long the shares are held. That is the position for tax year 2027 (1 July 2026 to 30 June 2027), as of 18 October 2026. A person not on the ATL pays more, and the sources disagree on the exact figure. For PSX trades, NCCPL computes the tax and collects it through the broker’s settling bank.
What is capital gains tax on shares in Pakistan?
It is income tax on the profit you make when you sell a listed share for more than you paid. The profit, called the capital gain, is the sale price less the cost of the shares. A sale at a loss carries no tax, and the loss can count against other gains in limited ways (below).
Section 37A covers “securities” that are listed and settled through the National Clearing Company of Pakistan Limited (NCCPL). Off-market sales outside that system are not covered here. Dividends are a separate matter: they carry their own tax, deducted by the company before payment, and the withholding tax on dividends post explains it.
How much tax on shares: the rate depends on the date you bought
The rate is set by when you acquired the shares, not when you sell them. Because the rule has changed several times, a portfolio built over years can hold shares in four or five tax groups. The table below follows NCCPL’s notice of 19 July 2024 and FBR’s published rates for tax year 2027, as reported by Pakistani tax news sites.
| Shares acquired | Rate for ATL persons | Rate for non-ATL persons |
|---|---|---|
| Before 1 July 2013 | 0% | 0% |
| 1 July 2013 to 30 June 2022 | 12.5% | 12.5% |
| 1 July 2022 to 30 June 2024 | 15% if held up to 1 year, falling by steps to 0% after 6 years | Same as ATL (NCCPL notice, July 2024) |
| 1 July 2024 to 30 June 2025 | 15% | Higher: sources say 30% (KPMG) or slab rates, never below 15% (NCCPL) |
| On or after 1 July 2025 | 15% | Higher, see the next section |
For the 1 July 2022 to 30 June 2024 group, the holding-period steps in NCCPL’s notice are 15% for up to one year, then 12.5%, 10%, 7.5%, 5% and 2.5% for each further year, and 0% beyond six years. The same percentages apply whether or not you are on the ATL.
For shares bought on or after 1 July 2024, FBR’s tax year 2027 rates apply the 15% rate to a person who is on the ATL on both the acquisition date and the disposal date. Being on the list only on the day you sell may not be enough.
What do non-filers pay?
More than 15%, but the sources differ on how much, and the rule may have changed in the last budget. What can be checked:
- NCCPL, July 2024. For shares acquired on or after 1 July 2024, individuals and associations of persons not on the ATL pay the rate in Division I of the First Schedule (the normal slab rates), and “the rate of tax for individuals and association of persons shall not be less than 15% in any case.” Companies not on the ATL pay 29% unless they document small-company status.
- KPMG, August 2025. For shares acquired between 1 July 2024 and 30 June 2025, 15% for ATL persons and 30% for others. For shares acquired on or after 1 July 2025, 15% for ATL persons and normal slab rates (individuals) or 29% (companies) for others.
- Press reports of NCCPL’s notice for the 2025-26 year said a flat 15% applies to shares acquired on or after 1 July 2025 whatever the ATL status. That does not match the KPMG summary of the same Finance Act.
- Finance Bill 2026 (June 2026). KPMG’s budget summary says the Bill proposed to withdraw an exclusion that kept section 37A tax out of the “double rate” for non-ATL persons in the Tenth Schedule. Tax news sites read that as doubling the tax for non-filers. We could not confirm that the proposal passed in the final Finance Act 2026.
So this post gives no single non-filer number. Read the current NCCPL notice or ask a tax adviser. One point is stable: appearing on the ATL is the largest thing an investor controls about this tax, and it is an administrative step.
Who collects it: NCCPL
NCCPL computes capital gains tax on PSX trades from its own settlement records and collects it through the settling banks of clearing members, which are the brokers. In a June 2026 notice, NCCPL said it would collect the tax on May 2026 disposals on 3 July 2026, and that members must keep enough money in their settling bank accounts on the collection date. In plain terms, the tax is taken in periodic batches after the month of the sale, by way of your broker, and reported to FBR.
Two consequences follow. A sale can be followed some days later by a deduction you did not enter anywhere yourself. And NCCPL’s figures come from its records of your trades, so the document to trust is NCCPL’s own CGT statement, not an estimate.
A separate super tax under section 4C applies only to very large gains: NCCPL’s 2025-26 notice describes slabs that start at 0% for income up to Rs 150 million. Most retail investors are far below that.
How are losses treated?
Capital losses on listed securities can be carried forward, within limits. Under rules introduced in 2021 and described again in current tax summaries, a loss that you cannot set off against gains in the same tax year can be carried to the following tax year and set off only against gains on listed securities. It cannot be carried beyond three tax years after the year in which the loss arose.
Two details matter. First, the loss only offsets gains from listed securities, not salary or business income. Second, reports of the 2021 rules say NCCPL applies the carried-forward set-off only for persons on the ATL. Whether that still holds, and how your own loss balance stands, is shown on NCCPL’s statement; check it there rather than assuming.
A worked example (illustrative numbers)
The prices and share counts below are invented round figures to show the arithmetic. They are not real trades, and they ignore brokerage and other charges, which are treated under their own rules.
Suppose an investor on the ATL bought all the shares below in March 2026, so the 15% rate applies.
| Item | Amount |
|---|---|
| Sale of Example Textile Ltd: 1,000 shares sold at Rs 260, bought at Rs 200 | Gain of Rs 60,000 |
| Sale of Example Power Ltd: 500 shares sold at Rs 90, bought at Rs 130 | Loss of Rs 20,000 |
| Net capital gain in the tax year | Rs 40,000 |
| Tax at 15% | Rs 6,000 |
Without the loss, the tax on the first sale alone would be Rs 9,000. The Rs 3,000 difference is the loss netted against the gain, as NCCPL does when it computes the net figure for the year. Now change one fact. If the same Example Textile Ltd shares had been bought in August 2023 and sold after 14 months, they fall in the 1 July 2022 to 30 June 2024 group, held more than one year but not more than two, so the rate is 12.5% and the tax on the Rs 60,000 gain is Rs 7,500. Same sale price, different tax, because the purchase date is different.
How is it different from dividend tax?
The two taxes fall on different events and are collected by different parties.
| Capital gains tax | Dividend withholding tax | |
|---|---|---|
| Triggered by | Selling a share for a gain | The company paying a dividend |
| Who collects | NCCPL, through your broker’s settling bank | The company, through its share registrar |
| Rate depends on | Acquisition date, holding period for older shares, ATL status | Dividend category and ATL status |
| Loss rule | Net gains per year, limited carry-forward | No loss concept |
| Where to check | NCCPL CGT statement | Registrar’s dividend advice |
A share can trigger both in the same year: dividend tax when it pays you, and capital gains tax when you sell it at a profit. Mutual funds follow a separate rule: NCCPL and FBR list 15% for stock funds, and the funds page lists the funds.
Why cost basis and dates matter
The rate turns on the purchase date, and for older shares on the holding period, so two records decide the tax: what you paid and when you bought. Broker statements show them, but a different statement each year is hard to read across five years of buying. The SuperX portfolio tracker records your cost basis and the date of each purchase for every holding, so you can see which tax group each lot belongs to before you sell. SuperX does not compute your tax, does not know your ATL status, and does not replace NCCPL’s statement; it keeps the inputs in one place so you can check NCCPL’s figures against your own.
If you are still setting up, how to start investing in PSX covers the account side, and zakat on shares covers the religious obligation, which is a different thing from this tax.
Where to check the current rules
NCCPL publishes the CGT notices and the guide to the regime, and your broker provides your CGT statement. FBR publishes the Ordinance, the Finance Acts and the Active Taxpayers List. Rates change with each Finance Act, so confirm the figure for the tax year of your sale with NCCPL’s CGT statement or a tax adviser. This post states facts and sources. It does not tell you what to do.
Frequently asked questions
What is the capital gains tax rate on shares in Pakistan for filers?
For shares acquired on or after 1 July 2024, the rate is 15% for a person on the Active Taxpayers List on the acquisition and disposal dates. For shares bought between 1 July 2022 and 30 June 2024, the rate falls from 15% to 0% as the holding period grows to over six years.
Do non-filers pay more tax on shares?
Yes, for shares acquired from 1 July 2024. Published sources give different figures, and the Finance Bill 2026 proposed doubling the tax for non-filers. Check NCCPL’s current notice for the exact rate.
Who deducts capital gains tax on PSX trades?
NCCPL computes it and collects it through your broker’s settling bank. You do not pay it yourself for trades settled through NCCPL.
Can I set a share loss against other income?
No. A loss on listed securities offsets only gains on listed securities. It can be carried forward for up to three tax years after the year it arose.
Are shares held for six years tax free?
Today, only shares acquired before 1 July 2013 are at 0%. Shares bought between 1 July 2022 and 30 June 2024 reach 0% after more than six years, so none can qualify before July 2028. Shares acquired on or after 1 July 2024 pay the flat rate however long you hold them.
Is capital gains tax the same as dividend tax?
No. Dividend tax is deducted by the company when it pays you. Capital gains tax is deducted by NCCPL when you sell at a profit. The rates and rules differ.
Education, not investment advice.
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