FBR: Only Registered Builders/Developers can Avail Fixed Tax Scheme

FBR has stated that the fixed tax scheme is only available to those builders or developers who choose it by registering their projects with FBR. Builders and developers eligible for this fixed tax scheme include individuals, a company or an Association of Persons (AOP). The fixed tax scheme includes new projects as well as incomplete existing projects subject to completion of such projects by 30th September, 2022.

The tax payable by builders and developers on their income, profits and gains yielded from the sale of buildings or plots shall be determined on a project by project basis on the basis of specified rates per square foot/per square yard for commercial and residential buildings and commercial, residential and industrial plots.

Builders and developers opting for the proposed scheme are not required to withhold income tax on the purchase of building material except steel and cement.