Stock market investors in Pakistan — whether trading shares on PSX or receiving dividends — must declare all investment income in their annual tax return. FBR taxes capital gains on short-term trades and dividend income at source. This guide covers every rate, rule, and filing step for 2026.
Capital Gains Tax (CGT) on Listed Securities — 2026 Rates
CGT on shares listed on Pakistan Stock Exchange (PSX) is collected by NCCPL at the time of sale. Rates depend on how long you held the shares:
| Holding Period | CGT Rate (Filer) | CGT Rate (Non-Filer) |
|---|---|---|
| Less than 12 months | 15% | 20% |
| 12 to 24 months | 12.5% | 20% |
| More than 24 months | 0% (Exempt) | 0% (Exempt) |
Key point: NCCPL deducts CGT automatically when you sell. The tax deducted appears in your IRIS profile and can be claimed as advance tax credit in your annual return.
Dividend Income Tax — 2026 Rates
Dividend income from Pakistani companies is subject to withholding tax at source. The company paying the dividend deducts tax before you receive it:
| Investor Status | WHT Rate | Tax Treatment |
|---|---|---|
| Active Filer | 15% | Final tax — no further liability |
| Non-Filer | 30% | Final tax — but higher cost |
| Mutual Fund dividend | 15% | Final tax on stock fund distributions |
Since dividend tax is "final," you do not add dividend income on top of your salary or business income for tax calculation. However, you must still declare it in your return.
How to Declare Stock Market Investments in Tax Return
Filing your return as a PSX investor involves four key declarations:
| What to Declare | Where in IRIS | Details Required |
|---|---|---|
| Share portfolio value | Wealth Statement → Investments | Market value as of June 30 |
| Capital gains (short-term) | Income from Capital Gains | Total gains from NCCPL statement |
| Dividend income received | Income from Other Sources | Total dividends (gross amount) |
| CGT already deducted by NCCPL | Advance Tax Paid | Claim as tax credit |
Where to Get Your Tax Data
- Log into NCCPL website → download Annual CGT Statement for the tax year
- Check your broker account statement for dividend credit vouchers
- Log into IRIS → Pre-filled Tax Information — many withholding credits appear automatically
- Mutual fund investors: download annual account statement from the AMC
Wealth Statement — What to Include
Even if you have no taxable gains, your share portfolio must appear in your wealth statement every year:
- List total value of all PSX shares at June 30 market price
- Include mutual fund NAV value at June 30
- Brokerage account balance also forms part of investable assets
- Shares purchased during the year: explain the source of funds used
Reconciliation tip: Wealth growth = Total income – Total expenditure. If you bought Rs. 5 lakh in shares from salary, your wealth statement must show that salary was the source. Mismatch triggers FBR notice under Section 111.
Frequently Asked Questions
Stock Market Tax Filing — Done Right
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