PSX Tax Guide: Capital Gains & Dividend Tax

When you make money on PSX, tax is usually deducted automatically, through your broker, NCCPL or the company paying the dividend. Here is a plain guide to what is taxed and how.

1. Be a filer first

Your tax rates depend on whether you are on FBR’s Active Taxpayer List (ATL). Non-filers pay noticeably higher rates on both profits and dividends. You can check your status on FBR’s website (e.fbr.gov.pk) or by SMS. Becoming a filer is one of the easiest ways to keep more of your profit.

2. Capital gains tax (CGT) on selling shares

• Non-filers pay a higher rate. Confirm the current rate with your broker or NCCPL.
• How it is collected: NCCPL works out your gains and losses across the tax year and collects the tax through your broker. Losses on some sales can be set against gains on others.
• You can see your CGT statement in your NCCPL account or ask your broker for it.

3. Tax on dividends

• Deducted by the company before the dividend reaches your bank account.
• Usually 15% for filers and about 30% for non-filers.
• Some sectors, such as power producers (IPPs), have a lower rate.
• Use our dividend yield calculator to see what you receive after tax.

4. Charges on every trade

• Brokerage commission on both buying and selling, which differs by broker.
• Sales tax on brokerage, charged by the province on the broker’s commission.
• Small CDC, NCCPL and exchange fees.

These add up for active traders. Use the profit after charges calculator to see your real profit.

5. Your yearly tax return

Tax on shares and dividends is largely final, but you should still show your share investments, gains and dividends in your annual return as a filer. Your broker and NCCPL statements have the figures you need. For anything complex, speak to a tax advisor.

This page is for education and information only. It is not investment, tax or legal advice. Rules and rates change, so always confirm with your broker, NCCPL, FBR or a qualified advisor.