Tax on Sale of Shares in Pakistan is generally charged on the taxable capital gain earned when an investor sells shares for more than their allowable acquisition cost. For Tax Year 2027, qualifying Pakistan Stock Exchange (PSX) transactions are principally governed by Section 37A of the Income Tax Ordinance, 2001, while Section 100B and the Eighth Schedule regulate capital gains tax computation and collection through the National Clearing Company of Pakistan Limited (NCCPL).
Quick Answer: NCCPL’s published Tax Year 2027 schedule shows a 15% capital gains tax rate for ATL investors and a 30% rate for non-ATL investors on qualifying PSX securities acquired on or after 1 July 2025. Older securities may qualify for different rates. The final treatment depends on the acquisition date, holding period, applicable ATL conditions, type of security and relevant statutory provisions.
This guide explains the official rates, practical calculations, capital loss adjustments, NCCPL certificates and reporting requirements for Pakistani investors.
Table of Contents
What Is Capital Gains Tax on Shares?
Capital Gains Tax (CGT) is a tax on a taxable profit arising from the disposal of an investment.
For example:
- Purchase price of shares: Rs. 200,000.
- Sale proceeds: Rs. 260,000.
- Capital gain before applicable adjustments: Rs. 60,000.
The taxable amount is generally based on the gain rather than the entire selling price.
Section 37A(1A) expresses the securities capital gain calculation as the consideration received on disposal minus the acquisition cost. The applicable NCCPL mechanism and tax rules determine relevant adjustments.
A sale may also produce a capital loss where the relevant acquisition cost exceeds the disposal proceeds.
Which Tax Laws Apply to the Sale of Shares in Pakistan?
The main provisions are:
| Provision | Purpose |
|---|---|
| Section 37A | Taxation of capital gains on qualifying securities |
| Section 37 | General capital gains provisions for transactions outside the special securities regime |
| First Schedule, Part I, Division VII | Capital gains tax rates on securities |
| Section 100B | Special computation and collection framework for listed securities |
| Eighth Schedule | NCCPL computation, collection, certificates and related procedures |
| Section 37A(5) | Adjustment and carry-forward of qualifying securities capital losses |
The official consolidated legislation is available through the FBR Income Tax Ordinance.
For market-specific rates, investors should also consult NCCPL’s official Capital Gains Tax information.
Capital Gains Tax Rates on PSX Shares for Tax Year 2027
NCCPL publishes the following rates for qualifying securities within its Tax Year 2027 CGT framework.
| Acquisition Date | ATL Rate | NCCPL-Published Non-ATL Rate |
|---|---|---|
| Before 1 July 2013 | 0% | 0% |
| 1 July 2013 – 30 June 2022 | 12.5% | 25% |
| 1 July 2022 – 30 June 2024 | Holding-period-based | Holding-period-based |
| 1 July 2024 – 30 June 2025 | 15% | 30% |
| 1 July 2025 onward | 15% | 30% |
Important: This table summarizes NCCPL’s published operational rates. For securities acquired on or after 1 July 2024, the First Schedule contains specific ATL conditions relating to the acquisition and disposal dates, along with statutory rules for taxpayers who do not meet those conditions. The actual tax treatment must be checked against the legislation and the investor’s circumstances.
The table should not be applied automatically to unlisted shares, exceptional off-market transfers, all debt securities, mutual fund redemptions or transactions covered by special provisions.
Why Does the Acquisition Date Matter?
Capital gains tax rates have changed through successive Finance Acts.
As a result, two investors who sell shares during the same tax year may face different rates if their investments were acquired during different periods.
Investors should retain:
- Acquisition date and purchase cost.
- Disposal date and sale proceeds.
- Relevant brokerage and settlement records.
- ATL status information where applicable.
- NCCPL CGT statements and certificates.
- Records supporting capital losses and adjustments.
Holding-Period-Based CGT Rates for Shares Acquired Between July 2022 and June 2024
For qualifying securities acquired from 1 July 2022 through 30 June 2024, the First Schedule provides the following holding-period rates.
| Holding Period | Base CGT Rate | NCCPL-Published Non-ATL Rate |
|---|---|---|
| Not exceeding 1 year | 15% | 30% |
| More than 1 year, up to 2 years | 12.5% | 25% |
| More than 2 years, up to 3 years | 10% | 20% |
| More than 3 years, up to 4 years | 7.5% | 15% |
| More than 4 years, up to 5 years | 5% | 10% |
| More than 5 years, up to 6 years | 2.5% | 5% |
| More than 6 years | 0% | 0% |
The 15% rate for a holding period not exceeding one year is expressly provided in Division VII of Part I of the First Schedule.
The subsequent reduced rates apply to the relevant acquisition-date category.
A holding period exceeding six years does not automatically exempt every share investment. Investors must first establish that their securities fall within the acquisition-date category eligible for the declining-rate schedule.
For example, shares acquired in August 2026 do not qualify for the older declining-rate schedule merely because the investor intends to hold them for several years.
How to Calculate Capital Gains Tax on Shares
The basic formula under Section 37A is:
Capital Gain = Consideration Received on Disposal − Cost of Acquisition
The applicable computation may include adjustments permitted under the relevant securities tax rules.
Once the taxable gain and rate are determined:
Capital Gains Tax = Taxable Capital Gain × Applicable Tax Rate
Example 1: ATL Investor Selling Shares Acquired in 2026
Suppose an investor:
- Acquires qualifying PSX shares in August 2026.
- Pays Rs. 500,000 for the investment.
- Sells the shares for Rs. 650,000.
- Has a taxable gain of Rs. 150,000.
- Meets the applicable ATL conditions.
Using the published 15% rate:
| Particulars | Amount |
|---|---|
| Taxable capital gain | Rs. 150,000 |
| CGT rate | 15% |
| Capital gains tax | Rs. 22,500 |
| Gain after CGT | Rs. 127,500 |
Calculation: Rs. 150,000 × 15% = Rs. 22,500.
This example assumes that the transaction qualifies for the stated rate and that no additional adjustments or liabilities affect the result.
Example 2: Non-ATL Investor
Suppose a non-ATL investor earns the same taxable gain of Rs. 150,000 from a qualifying transaction for which NCCPL’s published 30% rate applies.
| Particulars | Amount |
|---|---|
| Taxable capital gain | Rs. 150,000 |
| NCCPL-published rate | 30% |
| Illustrative CGT | Rs. 45,000 |
| Gain after CGT | Rs. 105,000 |
Calculation: Rs. 150,000 × 30% = Rs. 45,000.
This is an illustration of NCCPL’s published non-ATL rate, not a determination of every non-ATL investor’s final statutory liability.
For an explanation of taxpayer status, see Active Taxpayer vs Non-Active Taxpayer in Pakistan.
Example 3: Shares Acquired in 2021
Assume qualifying shares were acquired in 2021 and sold during Tax Year 2027.
If the taxable gain is Rs. 100,000 and the applicable ATL rate is 12.5%:
Capital Gains Tax = Rs. 100,000 × 12.5% = Rs. 12,500.
This illustrates why the acquisition date must be checked before selecting a rate.
Is CGT Charged on the Full Sale Price?
Generally, no.
Consider the following simplified transactions:
| Acquisition Cost | Sale Proceeds | Result |
|---|---|---|
| Rs. 100,000 | Rs. 140,000 | Rs. 40,000 gain |
| Rs. 100,000 | Rs. 100,000 | No gain |
| Rs. 100,000 | Rs. 85,000 | Rs. 15,000 loss |
The gain or loss must still be determined using the applicable statutory computation rules.
Brokerage charges, settlement fees and other transaction expenses should not be confused with capital gains tax. Their treatment depends on the applicable rules.
How Does NCCPL Calculate and Collect CGT?
NCCPL plays a central role in computing and collecting capital gains tax on qualifying listed securities.
Under Section 100B, capital gains on listed securities and the related tax, including super tax under Section 4C where applicable, are dealt with under the Eighth Schedule.
The Eighth Schedule provides for an automated NCCPL system to compute relevant gains and collect and deposit tax.
Investors should review their records to confirm:
- Securities acquired and disposed of.
- Acquisition and disposal dates.
- Capital gains and eligible losses.
- Applicable tax rates.
- Tax computed or collected.
- NCCPL certificates and supporting statements.
The NCCPL CGT page provides the published rates and related information.
Important 2026 Amendment to Section 100B
The Finance Act, 2026 amended Section 100B.
Under the revised framework, banking companies, insurance companies and mutual funds have specific treatment. NCCPL is required to compute and determine capital gains for these entities under the prescribed mechanism, while the entities continue to deposit the applicable tax under the relevant provisions.
Therefore, the general NCCPL collection explanation should not be treated as identical for every category of investor.
What Does the Eighth Schedule Require?
The Eighth Schedule contains important procedural rules for qualifying securities transactions.
NCCPL Annual Certificate
NCCPL is required to issue an annual certificate to the taxpayer for capital gains covered by the Schedule.
A certificate for a shorter period may also be issued where requested or required under the applicable provisions.
Certificate and Income Tax Return
The Schedule requires the relevant certificate to accompany the income tax return and treats it as conclusive evidence concerning income under the Schedule.
Taxpayers should retain the certificate and follow the current FBR IRIS procedure for reporting or submitting the relevant information.
NCCPL Reporting
NCCPL must furnish prescribed quarterly information concerning capital gains and computed tax to FBR.
Applicable Rates
Capital gains computed under the Eighth Schedule are charged at the rates specified in Division VII of Part I of the First Schedule.
Super Tax
The Eighth Schedule also contains provisions relating to super tax under Section 4C.
Where applicable, this is a separate consideration from the basic CGT percentage.
Can Capital Losses on Shares Be Adjusted?
Yes, subject to Section 37A(5).
A capital loss on securities chargeable under Section 37A may be adjusted against gains from other securities chargeable under the same section.
A qualifying unused loss may be carried forward for up to three immediately succeeding tax years.
For example, suppose an investor incurs a qualifying securities loss of Rs. 100,000 in Tax Year 2027.
If the loss cannot be fully adjusted against eligible Section 37A gains in that year, the unadjusted amount may, subject to the law, be carried forward for adjustment against qualifying securities gains in Tax Years 2028, 2029 and 2030.
It cannot be carried forward indefinitely.
Example: Securities Loss Adjustment
Assume an investor has:
- Qualifying securities gains: Rs. 80,000.
- Qualifying securities losses: Rs. 30,000.
If the losses are eligible for adjustment:
Net relevant gain = Rs. 80,000 − Rs. 30,000 = Rs. 50,000.
The tax is then determined under the applicable computation and rate rules.
Can Share Trading Losses Be Adjusted Against Salary?
No, a loss governed by Section 37A(5) is not a general deduction against salary or unrelated income.
The special securities loss-adjustment provisions should also not be confused with the general capital loss rules under Section 59, which apply in their own statutory context.
Investors should maintain year-wise loss records and reconcile them with NCCPL computations.
Are Listed and Unlisted Shares Taxed the Same Way?
Not necessarily.
Listed Shares
Qualifying listed securities traded and settled through the relevant framework generally fall within Section 37A and the associated NCCPL rules.
Unlisted Shares
Unlisted shares may fall under the general capital gains provisions, including Section 37, depending on the nature of the asset and transaction.
The applicable treatment may involve different rates, valuation rules and compliance requirements.
Investors should not apply NCCPL’s listed-securities rate table automatically to unlisted shares.
Off-Market Transactions and IPO Disposals
Section 37A includes exceptions for specified disposals of listed-company shares made otherwise than through a registered stock exchange and not settled through NCCPL.
It also contains rules for certain disposals during the initial public offering process.
Where an exception applies, Section 37 may govern the transaction instead.
The exact transaction structure must be reviewed before determining the applicable tax treatment.
Capital Gains Tax vs Dividend Tax
Capital gains and dividends are separate taxable events.
| Feature | Capital Gains Tax | Dividend Tax |
|---|---|---|
| Trigger | Disposal of shares resulting in a taxable gain | Receipt of a dividend |
| Relevant income | Gain on disposal | Dividend income |
| Principal rules | Section 37A or Section 37 | Dividend taxation provisions |
| Collection | NCCPL for qualifying securities | Applicable payer withholding |
| Rate | Acquisition-date and transaction-specific | Depends on applicable dividend rules |
An investor may receive dividends while holding shares and later earn a capital gain when selling them.
The two events should be reported according to their respective tax treatment.
How to Report Share Capital Gains in FBR IRIS
Investors required to file income tax returns should reconcile their share transactions with the relevant tax-year records.
Step 1: Identify the Correct Tax Year
The normal Tax Year 2027 covers 1 July 2026 to 30 June 2027.
For additional guidance, read Tax Year vs Financial Year in Pakistan.
Step 2: Obtain Investment Records
Collect:
- Broker trading statements.
- NCCPL CGT certificates.
- Relevant purchase and sale records.
- Capital gains and losses statements.
- Supporting documents for any applicable adjustments.
Step 3: Determine the Correct Legal Category
Check whether the transactions are covered by Section 37A, Section 37 or another applicable provision.
Do not combine unlisted-share gains with NCCPL-settled listed-security gains without reviewing their separate tax treatment.
Step 4: Reconcile NCCPL Figures
Compare reported gains, losses and tax with the available NCCPL certificates.
Investigate material discrepancies before filing.
Step 5: Complete the Applicable IRIS Fields
Use the relevant income tax return fields and current IRIS instructions for the taxpayer’s category.
Ensure that the treatment of securities gains and taxes is consistent with the statutory framework.
Step 6: Reconcile the Wealth Statement
Where a wealth statement is required, ensure that investment holdings, sale proceeds and resulting cash or bank balances are reflected consistently.
For the general filing process, see How to File Income Tax Return Online in Pakistan.
Quick Tool: Income Tax Calculator
Securities CGT is governed by specific rules and should not automatically be calculated using ordinary salary or business income tax slabs.
For a broader understanding of income tax calculations, use the TaxInfo.pk Income Tax Calculator.
For qualifying securities transactions, NCCPL’s applicable computation remains the relevant reference.
Common Mistakes to Avoid
Applying the Latest Rate to Older Investments
Shares acquired in different periods can attract different rates.
Ignoring the Holding-Period Rules
The declining holding-period schedule is restricted to specified acquisition-date categories.
Confusing Sale Proceeds With Taxable Gain
The entire amount received on selling shares is not automatically the taxable capital gain.
Assuming ATL Status at Disposal Is the Only Relevant Date
For securities acquired on or after 1 July 2024, the legislation includes conditions referring to ATL status at acquisition and disposal.
Treating Every Non-ATL Rate as a Universal Flat Rate
NCCPL’s published operational schedule should be read alongside the applicable statutory provisions.
Ignoring Capital Loss Carry-Forward
Eligible unadjusted Section 37A losses may be carried forward for up to three succeeding tax years, subject to the relevant restrictions.
Applying Listed-Security Rules to Unlisted Shares
Different transaction categories can fall under different statutory provisions.
Failing to Retain NCCPL Certificates
The Eighth Schedule places particular importance on NCCPL certificates and related tax reporting.
Frequently Asked Questions
What is the tax on sale of shares in Pakistan for 2026–27?
For qualifying PSX securities acquired on or after 1 July 2025, NCCPL’s Tax Year 2027 schedule publishes 15% for ATL investors and 30% for non-ATL investors. The applicable statutory conditions and investor circumstances must also be considered.
What is the CGT rate for shares held for less than one year?
For qualifying securities acquired from 1 July 2022 through 30 June 2024, Division VII provides a 15% base rate where the holding period does not exceed one year. NCCPL’s published non-ATL schedule indicates 30% for that category.
Are shares acquired before July 2013 tax-free?
NCCPL’s Tax Year 2027 schedule provides a 0% CGT rate for qualifying securities acquired before 1 July 2013. The transaction must fall within the relevant regime.
Does holding shares for six years eliminate CGT?
Not automatically. The declining holding-period schedule applies to specified acquisition-date categories. Investors should verify the applicable rules before assuming a zero rate.
Can I carry forward a loss on shares?
Yes. Under Section 37A(5), eligible unadjusted securities losses may be carried forward for up to three immediately succeeding tax years and adjusted only against qualifying Section 37A securities gains.
Can share losses reduce salary tax?
No. Losses governed by the special Section 37A rules cannot simply be deducted from salary income.
Does NCCPL issue a CGT certificate?
Yes. The Eighth Schedule provides for an annual certificate, with shorter-period certificates available in specified circumstances.
Is tax on unlisted shares always 15%?
No. Unlisted-share transactions require separate legal analysis and should not automatically use the PSX-listed-securities CGT schedule.
Is capital gains tax deducted automatically?
For qualifying transactions within the NCCPL framework, CGT is computed and collected through the prescribed mechanism. Special taxpayer categories and transactions outside that framework may be treated differently.
Where can investors verify the latest official CGT rates?
Investors can consult the NCCPL Capital Gains Tax page and the FBR Income Tax Ordinance.
Final Words
Tax on Sale of Shares in Pakistan for 2026–27 depends on the acquisition date, holding period, applicable taxpayer status and the legal treatment of the transaction.
For qualifying PSX-listed securities, investors should use the official NCCPL schedule together with Section 37A, Section 100B and the Eighth Schedule.
Accurate purchase records, NCCPL certificates, eligible loss adjustments and correct tax-year reporting are essential for compliance.
Investors dealing in unlisted shares, unusual off-market transfers or transactions subject to special rules should establish the applicable statutory treatment separately.
