Capital Gains Tax & Dividend Tax on PSX Stocks (Pakistan)
If you invest on the Pakistan Stock Exchange, two taxes touch almost everything you do: capital gains tax (CGT) when you sell shares for a profit, and dividend tax when a company pays you a dividend. This guide explains how both work in plain English, why your filer status matters more than almost anything else, and who actually calculates and collects these taxes so you are not left guessing.
If you invest on the Pakistan Stock Exchange, two taxes touch almost everything you do: capital gains tax (CGT) when you sell shares for a profit, and dividend tax when a company pays you a dividend. This guide explains how both work in plain English, why your filer status matters more than almost anything else, and who actually calculates and collects these taxes so you are not left guessing.
One thing up front, because it matters for a topic like this: tax rates in Pakistan are set in the annual federal budget each June and can change from one year to the next. The figures below reflect the framework into the 2026-27 tax year, including the Finance Act 2026 passed in June 2026 (which, for ordinary listed-share investors, left the headline rates unchanged - details below). Treat them as a map of how the...
Key takeaways Two separate taxes: CGT applies to your profit when you sell shares; dividend tax applies to dividends you receive. They sit in different parts of the law (CGT under Section 37A, dividends under Section 150) and are collected differently. Filer vs non-filer is the biggest lever. Being on FBR's Active Taxpayers List (ATL) roughly halves the tax you pay on dividends and gives you the lower CGT treatment....
Capital gains tax (CGT) Dividend tax When it applies When you sell listed shares for a profit When a company pays you a dividend Law Section 37A, Income Tax Ordinance Section 150, Income Tax Ordinance Who calculates/collects it NCCPL, across your brokerage accounts Withheld at source by the company/CDC before you receive it How it is charged Rate depends on acquisition date, holding period and filer status Ge...
Listed-share CGT: unchanged. The 15% headline rate for people on the Active Taxpayers List continues to apply to shares acquired on or after 1 July 2024, and the heavier slab-based treatment for those not on the list continues for later acquisitions. Dividend tax on ordinary listed shares: unchanged. The ~15% filer / ~30% non-filer withholding picture carries into 2026-27. Debt securities: withholding increased. Tax...