Every rupee you earn on the stock market is taxed in one of two ways: tax on dividends, deducted before the money reaches you, and capital gains tax on PSX shares you sell at a profit, worked out and collected through NCCPL. How much you pay depends heavily on whether you are on the FBR Active Taxpayers List (ATL), the list of so-called filers. This guide explains both taxes for tax year 2027 (1 July 2026 to 30 June 2027) using FBR, NCCPL and PSX documents, with links to each source.
Tax rules change with every budget and can depend on your personal situation. Use this as a map of how the system works, then confirm the figures for your own case with your broker’s tax statement or a tax adviser.
Filer or non-filer: why the ATL matters
FBR’s withholding tax tables show two rates for most items: one for persons on the Active Taxpayers List and a higher one for persons not on it. For listed share income, the non-ATL rate on most dividends is double the ATL rate, as the table below shows. Being on the ATL generally means filing your income tax return on time; you can check your status on the FBR website.
Tax on dividends (section 150)
When a listed company pays a dividend, it deducts tax at source under section 150 of the Income Tax Ordinance 2001 and pays you the net amount. The FBR Withholding Tax Rate Card updated to 30 June 2026 as per the Finance Act 2026 gives these rates:
| Type of dividend | On ATL (filer) | Not on ATL |
|---|---|---|
| General rate for company dividends (cases not covered below), including REITs | 15% | 30% |
| Dividends paid by Independent Power Producers (IPPs) | 7.5% | 15% |
| Mutual funds deriving 50% or more of income from profit on debt | 25% | 50% |
| Mutual funds, depending on the share of income from debt securities | 25% or 15% | 50% or 30% |
| Company paying no tax because of exempt income or carried-forward losses | 25% | 50% |
| Dividend received by others from a REIT Special Purpose Vehicle | 35% | 70% |
| Dividend received by a REIT scheme from a Special Purpose Vehicle | 0% | 0% |
For most ordinary company dividends, a filer therefore has 15% deducted and a non-filer 30%. Here is a simple worked example with round numbers:
- You hold 1,000 shares and the company declares a cash dividend of Rs 10 a share, so the gross dividend is Rs 10,000.
- On the ATL: 15% is withheld, Rs 1,500, and Rs 8,500 reaches your bank account.
- Not on the ATL: 30% is withheld, Rs 3,000, and Rs 7,000 reaches you.
The same card lists tax on bonus shares under section 236Z at 10% for persons on the ATL and 20% for those not on it. To see how dividends compare across companies before tax, our guide to dividend yield and our list of the highest dividend yield stocks on PSX are good next steps. Remember that the yields shown there are before tax.
Capital gains tax on PSX shares (section 37A)
When you sell listed shares for more than you paid, the profit is a capital gain taxed under section 37A. Unlike dividends, you do not usually calculate or pay this yourself. The National Clearing Company of Pakistan (NCCPL) computes each investor’s gains and losses and collects the tax through brokers.
How NCCPL collects CGT
NCCPL works on a monthly cycle. For example, its notice NCCPL/CM/AUGUST-26/20 of 31 August 2026 said capital gains tax on PSX disposals made between 1 July and 31 July 2026 would be collected on Tuesday 8 September 2026 through the settling banks of clearing members, which are the brokers. Investor-wise gains, losses and tax due appear in NCCPL’s CGT system reports, which brokers must check. In practice your broker recovers the tax from your account, so make sure your ledger has enough balance.
The Finance Act 2026 widened this system. FBR Circular No. 2 of 2026-27, which explains the Finance Act 2026 changes, says the option to stay outside the NCCPL computation rules in the Eighth Schedule has been abolished, and that the rules on computing and paying capital gains tax now apply to every person. The FBR salient features of the 2026-27 budget also say NCCPL’s role in computing capital gains on listed securities “has been expanded and clarified”.
The rate: what we could and could not confirm
The last official CGT rate table we could read is NCCPL notice NCCPL/CM/JULY-24/08 of 19 July 2024, which applied the Finance Act 2024 rates for tax year 2025:
| Shares on PSX | Rate in tax year 2025 (NCCPL notice, July 2024) |
|---|---|
| Acquired on or after 1 July 2024 (individuals and AOPs) | 15% |
| Acquired 1 July 2022 to 30 June 2024 | From 15% (held up to 1 year) down to 0% (held over 6 years), in steps of 2.5 points per year held |
| Acquired 1 July 2013 to 30 June 2022 | 12.5% |
| Acquired before 1 July 2013 | 0% |
For tax year 2025, that notice applied the same rates to ATL and non-ATL individuals. That has now changed. FBR Circular No. 2 of 2026-27 explains that a clause in rule 10 of the Tenth Schedule has been omitted, “meaning thereby the enhanced rate of tax on capital gain on disposal of securities under section 37A shall become applicable” to persons not on the ATL. The salient features document describes the same change as withdrawing the exclusion from enhanced rates for non-ATL persons on capital gains from listed securities, “to encourage tax compliance and return filing”.
As of 2 November 2026 we could not find an official FBR or NCCPL page that sets out the full tax year 2027 rate table for section 37A, including the exact percentage non-filers now pay. Please treat the table above as background only and confirm the current rate for your holdings on your broker’s CGT statement, with NCCPL or with a tax adviser. We will update this article when the official table is available.
Other taxes and rules worth knowing
- Super tax. The 2026-27 salient features say super tax has been abolished for persons with income up to Rs 500 million, and cut from 10% to 8% above that level (with exceptions for the banking, oil and gas exploration and fertilizer sectors). An NCCPL notice of 5 June 2026 explains how super tax and CGT were handled for tax year 2026. Most retail investors are far below the Rs 500 million threshold.
- Debt securities. Circular No. 2 of 2026-27 says the rate under section 151A has risen from 15% to 20%; the rate card shows 20% for ATL persons and 40% for others, on the gross capital gain.
- Losses. NCCPL’s system records both gains and losses on listed securities; how losses are set off in your return is a question for your tax adviser.
- Your annual return. Tax withheld on dividends and collected on capital gains still needs to be reported correctly in your income tax return. Your broker and NCCPL can provide the statements you need.
Practical checklist for investors
- File your income tax return on time so you stay on the ATL. For most dividends this halves the tax rate.
- Keep a ledger balance with your broker around month-end, as CGT is recovered through brokers in the monthly cycle.
- Save your dividend tax certificates and NCCPL CGT statements for your return.
- Compare dividend income after tax, not before, when you look at yield.
- When in doubt, ask a qualified tax adviser before acting.
New to the market? Start with our step-by-step guide on how to invest in the Pakistan Stock Exchange and our guide to opening a CDC account and choosing a broker. The Market Pulse Hub dashboard also has a Calculators section that includes a dividend income calculator.
Frequently asked questions
What is the tax on dividends in Pakistan for filers?
Under the FBR withholding tax rate card updated for the Finance Act 2026, the general rate on company dividends is 15% for persons on the Active Taxpayers List and 30% for those not on it. Some categories differ, such as 7.5% for dividends from IPPs and 25% for certain mutual funds.
What is the capital gains tax rate on PSX shares?
The most recent official NCCPL table we could read, for tax year 2025, showed 15% for shares acquired on or after 1 July 2024. For tax year 2027 FBR confirms that non-filers now face an enhanced rate, but we could not confirm the full official rate table as of 2 November 2026, so check the current rate with your broker or a tax adviser.
Who collects capital gains tax on shares in Pakistan?
NCCPL computes capital gains and losses on listed securities and collects the tax every month through brokers’ settling banks. Under the Finance Act 2026, the option to stay outside this system has been abolished, so the rules apply to every person.
Do non-filers pay more tax on shares?
Yes. Non-ATL persons pay double the filer rate on most dividends (for example 30% instead of 15%), 20% instead of 10% on bonus shares, and from tax year 2027 an enhanced rate on capital gains from listed securities.
Is tax deducted on bonus shares?
Yes. Section 236Z applies to bonus shares issued by companies. The FBR rate card shows 10% for persons on the ATL and 20% for those not on it.
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Bilal, Market Pulse Hub
Tax rates are from FBR, NCCPL and other official publications, and figures are from our calculations up to 2 November 2026 and will change as new data arrives. This article is for education only and is not investment advice.