Updated: 26 October 2026 | Applicable tax year discussed: Tax Year 2027 (1 July 2026–30 June 2027)
When investors make a profit on the Pakistan Stock Exchange (PSX), they often ask a practical question: how much tax will be deducted? Understanding tax on stock trading in Pakistan helps investors evaluate net returns, compare trading costs and keep better records. This guide explains capital gains tax (CGT), dividend withholding tax, filer and non-filer status, and the role of the National Clearing Company of Pakistan Limited (NCCPL).
Important: The general rates and examples below are based on official NCCPL Tax Year 2027 tables and the FBR tax framework available as of 26 October 2026. They describe typical PSX-listed share transactions, not every type of security, account or taxpayer. Tax laws, exceptions and individual circumstances can affect the outcome. Confirm the applicable position with NCCPL, FBR, your broker or a qualified tax adviser before acting.
What Taxes Apply to Stock Trading in Pakistan?
Two taxes are especially relevant for an individual investing in listed shares:
1. Capital gains tax (CGT): tax on a taxable gain when listed shares are disposed of.
2. Dividend withholding tax: tax deducted from a cash dividend distributed by a company.
Investors may also pay brokerage commission, clearing or depository charges, and applicable taxes on brokerage services. These costs are not the same as capital gains tax or dividend tax.
What Is Capital Gains Tax on PSX Shares?
Capital gains tax generally applies to the gain on disposal rather than the full sale proceeds. For example, buying a share for Rs 100 and selling it for Rs 130 produces a simple gain of Rs 30 before transaction charges or other tax adjustments. The precise taxable gain can differ according to the applicable cost basis, rules and adjustments.
If a disposal produces a loss rather than a gain, that transaction does not produce a positive gain to tax. However, the use of losses against other gains and the filing treatment are subject to specific legal rules; do not assume every loss can automatically reduce other taxes.
Capital Gains Tax Rates for Tax Year 2027
NCCPL publishes separate capital gains tax rates for persons appearing in the FBR Active Taxpayers List (ATL) and those not appearing in it. The following summary covers the ordinary PSX-listed securities categories shown in its Tax Year 2027 table:
| When shares were acquired | Appearing in ATL | Not appearing in ATL |
| Before 1 July 2013 | 0% | 0% |
| 1 July 2013 to 30 June 2022 | 12.5% | 25% |
| 1 July 2022 to 30 June 2024 | Holding-period-dependent rates | Holding-period-dependent rates |
| On or after 1 July 2024 | 15% | 30% |
For shares purchased between 1 July 2022 and 30 June 2024, NCCPL shows declining rates across defined holding periods, so a single percentage would be misleading. The rates and treatment for mutual funds, commodity contracts, certain special situations and corporate taxpayers may also differ. Use the NCCPL CGT schedule for the exact acquisition date and security type.
The ATL classification and relevant dates should be confirmed with the broker or NCCPL rather than inferred merely from having an NTN. Higher-income persons may also be affected by other statutory provisions, including super tax where applicable.
Capital Gains Tax Example: Investor Appearing in ATL
Assume a typical individual investor is on the applicable ATL, purchases ordinary PSX-listed shares on or after 1 July 2024 for Rs 500,000, then sells them for Rs 650,000. For this simplified example:
- Sale proceeds: Rs 650,000
- Purchase cost: Rs 500,000
- Illustrative gain: Rs 150,000
- CGT at 15%: Rs 22,500
- Illustrative gain remaining after CGT: Rs 127,500, before other costs
If the relevant rate instead were 30%, the tax on the same illustrative Rs 150,000 gain would be Rs 45,000. These examples are not an individualized tax assessment and exclude commissions, other taxes, losses and adjustments.
Who Calculates and Collects CGT on PSX Trades?
NCCPL administers the capital gains tax computation and collection process for relevant transactions in listed securities under the applicable framework. The securities broker and clearing arrangements are involved in reporting and collecting the amount due. Investors should review their transaction confirmations, CGT reports and brokerage statements rather than assuming every calculation is automatically correct for their personal tax return.
Keep records showing acquisition dates, sale dates, quantities, prices, transaction costs and any tax deducted. Ask your broker how to obtain your relevant NCCPL tax reports or certificates.
What Is Dividend Tax in Pakistan?
A dividend is a payment a company may distribute to shareholders. For a standard cash dividend paid by an ordinary listed company, withholding tax is generally deducted at source under section 150 of the Income Tax Ordinance, 2001.
| Investor status | Ordinary listed-company dividend WHT |
| Appearing in ATL | 15% |
| Not appearing in ATL | 30% |
These are the standard rates for ordinary listed-company dividends. Different rules can apply to specified power producers, mutual funds, REIT-related entities, special-purpose vehicles, exempt entities and other categories. Do not apply the ordinary-share rates to every dividend or investment product.
Dividend Tax Example
On a standard gross cash dividend of Rs 10,000, an ATL investor with 15% withholding would have Rs 1,500 deducted and receive Rs 8,500. At the ordinary non-ATL withholding rate of 30%, Rs 3,000 would be deducted and Rs 7,000 received. Actual tax treatment depends on the category and applicable status.
Filer vs Non-Filer: What Does ATL Status Mean?
For withholding tax purposes, the important distinction is whether a person appears on the Federal Board of Revenue Active Taxpayers List (ATL) under the applicable rules. Merely knowing your National Tax Number (NTN), or having previously registered with FBR, does not necessarily mean you are currently appearing in ATL.
FBR allows a person who has filed after the due date to qualify for ATL inclusion under applicable late-filing and surcharge rules. Investors should verify their actual status rather than assume that late filing permanently prevents inclusion.
| Item | Appearing in ATL | Not appearing in ATL |
| CGT on ordinary shares acquired on/after 1 July 2024 (NCCPL 2027 table) | 15% | 30% |
| Standard cash dividend withholding | 15% | 30% |
| What to confirm | Active status on relevant FBR record | Status and applicable higher rates before trading |
How to Check Your FBR Active Taxpayer Status
You can check your current income tax ATL status through FBR’s official online verification service. FBR also provides an SMS verification method: individuals can send “ATL” followed by a space and their 13-digit CNIC number to 9966; companies and associations use their NTN in the format described by FBR. Use only your own information or details you are authorized to verify.
For an individual, FBR explains that the 13-digit CNIC serves as the registration number/NTN when e-enrolled. Filing an appropriate return through Iris, and meeting any late-filing obligations where relevant, is distinct from merely registering for income tax.
How to Become a Tax Filer in Pakistan
1. Register or confirm your tax registration through the official FBR Iris system using your own details.
2. Prepare and submit your applicable income tax return and other required information in accordance with FBR requirements.
3. Check whether your name appears in the relevant FBR ATL. If you filed late, check whether any surcharge or further action applies.
4. Provide updated tax registration and status information to your broker when requested, and verify the rates shown on transaction or dividend statements.
Return deadlines can be extended or revised, and requirements differ by taxpayer type. Check the latest instructions on FBR’s website instead of relying on last year’s dates.
Other Charges to Consider When Buying or Selling Shares
Tax on stock trading in Pakistan is only one part of an investor’s total costs. The charges applicable to an individual account may include:
- Brokerage commission and applicable tax on brokerage services.
- Clearing and settlement charges, depending on the transaction and account.
- Depository or related account charges, when applicable.
- Other regulatory or transaction charges specified in the broker’s current schedule.
Ask your broker for its current written schedule of charges. The amounts can vary; this article does not claim any universal fee for every brokerage account.
Practical Tax Record-Keeping Tips for PSX Investors
- Confirm your applicable FBR ATL status before relying on a filer rate.
- Keep trade confirmations, periodic account statements and dividend vouchers.
- Record when shares were purchased: acquisition dates can change the CGT rate.
- Check NCCPL tax calculations against your own transaction history and raise questions promptly.
- Consider foreign tax obligations if you live overseas or use a Roshan Digital Account.
- Ask a qualified tax adviser about tax-loss treatment, special securities, large transactions and personal return filing.
Frequently Asked Questions About Tax on Stock Trading in Pakistan
1. Is profit from selling PSX shares taxable?
Taxable capital gains on listed shares are generally subject to capital gains tax. The applicable rate depends on the acquisition date, holding period where relevant, ATL status and applicable law.
2. What is the CGT rate on PSX shares in Tax Year 2027?
For ordinary listed shares acquired on or after 1 July 2024, NCCPL’s Tax Year 2027 table shows 15% for investors appearing in ATL and 30% for investors not appearing in ATL. Different acquisition periods and securities can have different rates.
3. Is a dividend taxed even if I do not sell my shares?
Yes. A cash dividend can have withholding tax deducted when the payment is made, regardless of whether you sell your shares.
4. What is the ordinary dividend withholding tax rate?
For an ordinary listed-company cash dividend, the standard rates are generally 15% for ATL and 30% for non-ATL recipients. Certain dividend categories have different rules.
5. Who calculates capital gains tax?
NCCPL administers CGT computation for the applicable stock-market transactions, with brokers and clearing participants involved in the collection process.
6. Does an NTN automatically make me a filer?
No. For the rate distinction discussed here, appearing on FBR’s Active Taxpayers List is important. Check current ATL status through the official FBR service.
7. Do I pay CGT when I sell shares at a loss?
A loss does not create a positive taxable capital gain for that disposal. Rules on loss adjustment and income tax returns are more detailed and should be checked with a tax adviser.
8. Can tax rates change after this article is published?
Yes. Finance Acts, notifications and official interpretations may change the applicable treatment. Verify the position at the time of your transaction.
Learn About PSX Investing with Pine Capital Management
Pine Capital Management (Pvt.) Ltd., based in ISE Towers, Blue Area, Islamabad, provides brokerage-related account opening and support for investors interested in the Pakistan Stock Exchange. Understanding the tax impact of investing can help you ask better questions and evaluate your net returns more carefully.
If you are new to share investing, read our guide on opening a PSX trading account online in Pakistan or contact the Pine Capital team for information about the onboarding process. Tax questions specific to your circumstances should be addressed to FBR or a qualified tax adviser.
Pine Capital Management website
How to Open a PSX Trading Account Online in Pakistan
Official Sources and Tax-Year References
The following official sources were consulted for the Tax Year 2027 explanations and definitions above (reviewed 26 October 2026):
- NCCPL — Capital Gains Tax (Tax Year 2027 rate tables)
- FBR — Withholding Tax Rate Cards (Tax Year 2027)
- FBR — Income Tax Ordinance, 2001 (amended up to 30 June 2026)
- FBR — Income Tax Active Taxpayers List guidance
- FBR — Check ATL Status
- FBR — Income Tax Registration Basics
- PSX — Investor Information and Market Structure
Risk and Tax Disclaimer
Investing in shares involves market risk, including the possible loss of capital. The rates in this article are general published reference rates as of 26 October 2026 and may not apply to every investor or instrument. Actual CGT, withholding, loss treatment and return-filing obligations depend on the law and individual facts. This article is for general education only, not personalized investment, tax or legal advice. Consult an appropriately qualified professional and current official sources before making financial or tax decisions.
