If you invest on the Pakistan Stock Exchange (PSX), you deal with two main taxes:
- capital gains tax (CGT), when you sell shares at a profit
- tax on dividends, when a company pays you cash
The good news for beginners is that both are deducted at source. NCCPL, the National Clearing Company, collects CGT through your broker. The company paying a dividend deducts dividend tax before the money reaches you.
This guide explains the rates for tax year 2026–27, how they depend on when you bought and whether you are a filer, and works through an example. Rates come from the linked sources, as checked on 1 October 2026. Budgets change them often, so check with your broker or a tax adviser before you rely on any figure.
Filer vs non-filer: why it matters
You are a filer if you appear on FBR's Active Taxpayer List (ATL). In practice, that means you filed your income tax return on time.
- On dividends, non-filers usually pay double the filer rate.
- On capital gains, the gap depends on when you bought the shares, as the next section shows.
If you plan to invest seriously, getting on the ATL is one of the easiest ways to keep more of your returns.
Capital gains tax (CGT) on shares
CGT is charged on the profit you make when you sell: your sale price minus your purchase price. The rate depends on when you bought the shares.
| When you bought the shares | Filer (ATL) | Non-filer |
|---|---|---|
| On or after 1 July 2025 | 15% | 15% deducted by NCCPL. Under the Finance Act 2025, final tax may be at normal income tax slab rates |
| 1 July 2024 to 30 June 2025 | 15% | 30% |
| 1 July 2022 to 30 June 2024 | Falls with how long you hold: 15% if held under 1 year, down to 0% after 6 years | Check with your broker |
| 1 July 2013 to 30 June 2022 | 12.5% | Check with your broker |
| Before 1 July 2013 | 0% | 0% |
Sources: KPMG on Finance Act 2025, PwC tax summary and Profit on NCCPL's FY26 rates.
What this means in practice
- For anything bought since July 2024, the holding period no longer matters for filers. Whether you sell after a week or after five years, the rate is 15%.
- The non-filer rules changed in July 2025. NCCPL deducts 15% from non-filers too on these shares. KPMG and PwC note, however, that a non-filer's final liability is at normal slab rates, with 15% as the minimum. Non-filers may therefore owe more on assessment.
- Very large gains may also face super tax once total income passes Rs 150 million. This does not affect typical retail investors.
How NCCPL collects CGT
- Each trade is recorded against your UIN, the unique number NCCPL gives every investor.
- NCCPL matches your buys and sells, works out gains and losses at the applicable rates, and calculates the tax.
- The tax is collected through your broker. Your broker statement or NCCPL statement shows how much was deducted.
- NCCPL also issues a CGT certificate or statement you can use when you file your tax return.
You do not have to calculate CGT trade by trade. It does help to understand it, so you can check the deductions. Ask your broker how losses in one share are set off against gains in another within the tax year, and whether unused losses carry forward.
Tax on dividends
When a listed company pays a cash dividend, it deducts tax first, under section 150 of the Income Tax Ordinance. For most individual investors this is a final tax. You report the dividend on your return, but you don't pay anything more on it.
| Type of company | Filer rate | Non-filer rate |
|---|---|---|
| Most listed companies | 15% | Usually double (about 30%) |
| Power producers (IPPs) where the dividend is a pass-through item | 7.5% | Usually double |
| Companies with no tax liability (exempt, or with losses carried forward) | 25% | Usually double |
Source: PwC tax summary. PwC notes that rates increase by 100% for people not on the ATL.
Mutual funds and REITs have their own rates, which this guide does not cover.
Dates that decide who gets a dividend
To receive a dividend, you must own the shares before the ex-date. A ticker with an "XD" suffix, such as OGDCXD, is already trading ex-dividend.
The cash arrives in the bank account linked to your CDC account, after tax. Upcoming payouts are on our dividends page.
Zakat
For some Muslim shareholders, zakat may also be deducted from dividends, unless the shareholder has filed a valid exemption declaration. Check with your broker or CDC how this applies to you.
Bonus shares
Bonus shares are also taxed. Since 2023, tax at 10% has been withheld on bonus issues, usually by keeping back some of the bonus shares. This is one reason many companies now prefer share splits to bonus issues. Check the current rate with your broker before a bonus book closure.
Capital value tax (CVT)
Older guides mention capital value tax on buying shares. It was abolished for listed shares from 19 April 2020 under the Tax Laws (Amendment) Ordinance 2020 (PKRevenue). If you see a CVT line on a share purchase today, ask your broker what it is.
You still pay these small trading charges on each trade:
- brokerage commission
- provincial sales tax on the commission
- small PSX, SECP, CDC and NCCPL fees
These are not taxes on your profit. Our getting started guide shows them on a sample trade.
Worked example: a filer's year
Ayesha is on the ATL. Here is what she did:
- August 2025: bought 200 shares of a company at Rs 250 each, for Rs 50,000.
- March 2026: the company paid a cash dividend of Rs 15 a share.
- September 2026: sold all 200 shares at Rs 310 each, for Rs 62,000.
Step 1: dividend tax
| Item | Amount |
|---|---|
| Gross dividend (200 × Rs 15) | Rs 3,000 |
| Tax deducted at 15% (filer) | Rs 450 |
| Paid into her bank account | Rs 2,550 |
If Ayesha were a non-filer, about Rs 900 would be deducted (30%), and she would receive about Rs 2,100.
Step 2: capital gains tax
| Item | Amount |
|---|---|
| Sale value (200 × Rs 310) | Rs 62,000 |
| Purchase cost (200 × Rs 250) | Rs 50,000 |
| Capital gain | Rs 12,000 |
| CGT at 15% (bought after 1 July 2025) | Rs 1,800 |
NCCPL works this out and collects it through her broker. Her broker statement shows the exact figure. Brokerage and other charges can change the gain slightly.
Step 3: what she keeps
| Amount | |
|---|---|
| Dividend after tax | Rs 2,550 |
| Gain after CGT (Rs 12,000 − Rs 1,800) | Rs 10,200 |
| Total return after tax, before trading charges | Rs 12,750 |
That is about 25.5% on her Rs 50,000. Trading charges would reduce it by a few hundred rupees.
What if she had bought in August 2024 instead?
As a filer she would still pay 15% CGT. As a non-filer, she would pay 30%, or Rs 3,600 on the same gain, and roughly double the tax on the dividend.
Do I need to file a tax return?
You need to file if your income is above the taxable limit, or if you want filer rates. Most importantly, being a filer:
- halves your dividend tax
- protects you from higher withholding in banking, property and vehicle purchases
- lets you show your share investments as declared wealth
Even when tax is deducted at source, you should report your shares, dividends and gains in your wealth statement. A tax adviser can help with your first return.
Quick summary
- CGT: 15% for filers on shares bought since 1 July 2024, whatever the holding period. It is deducted by NCCPL through your broker.
- Dividend tax: 15% for filers on most companies, deducted at source. Non-filers usually pay double.
- CVT: none on buying listed shares since April 2020.
- Bonus shares: 10% is withheld. Check the current rate.
- Becoming a filer is the simplest way to cut your tax.
New to PSX? Read our complete guide to opening an account and buying shares, or browse the learning section.
Not financial advice or tax advice. Tax rates change with every budget, so confirm your position with your broker, NCCPL or a qualified tax adviser.