Introduction

If you sell shares on the Pakistan Stock Exchange (PSX), the tax is not worked out on the sale amount. It is worked out on your profit, and the National Clearing Company of Pakistan Limited (NCCPL) normally calculates and collects it for the Federal Board of Revenue (FBR). That sounds simple until you ask which rate applies, and the answer depends on when you bought the shares, how long you held them and whether you were on the Active Taxpayers List (ATL).

The rules also moved this year. The Finance Act 2026, enacted in June 2026, kept the headline 15% rate for filers but withdrew a carve-out that had softened the position for non-filers. At the same time, the return deadline for Tax Year 2026 has just passed, so many investors are reconciling last year's NCCPL figures right now.

This guide explains the current capital gains tax (CGT) rules for PSX shares, shows the rate table by purchase date, walks through worked examples and tells you what to check before you declare gains in your return. It covers shares traded through PSX. For property, see ICT's separate guide to capital gains tax on property and other assets in Pakistan.

Quick Answer

For shares sold on PSX in Tax Year 2027 (1 July 2026 to 30 June 2027), NCCPL deducts capital gains tax from your profit, not your sale value. Shares bought on or after 1 July 2024 are taxed at 15% if you were on the Active Taxpayers List at purchase and sale. Older shares carry lower rates; non-filers pay more.

Key points

• Tax is charged on the gain (sale proceeds minus cost), under section 37A of the Income Tax Ordinance, 2001.
• Shares bought before 1 July 2013 are taxed at 0%; those bought from 1 July 2013 to 30 June 2022 at 12.5%.
• Shares bought from 1 July 2022 to 30 June 2024 follow a sliding scale from 15% down to 0% by holding period.
• Non-filers face higher collection after the Finance Act 2026 removed a Tenth Schedule exclusion.
• Keep your NCCPL annual certificate and broker records for your return and wealth statement.

What Is Capital Gains Tax on PSX Shares?

Capital gains tax on PSX shares is income tax charged on the profit you make when you dispose of listed securities. Section 37A of the Income Tax Ordinance, 2001 charges gains from the disposal of securities at the rates in Division VII of Part I of the First Schedule. The section also treats these gains as a separate block of income, which matters for loss set-off (see below).

The basic calculation, as the FBR describes it, deducts the cost of acquisition from the consideration you receive on disposal. Three things follow:

• Profit is taxed, not turnover. Selling Rs 1,000,000 of shares that cost Rs 950,000 produces a Rs 50,000 gain.
• Only realised gains count. A rise in the value of shares you still hold is not taxed until you sell.
• Dividends are a different tax. Dividend income is withheld at source when the company pays it. It is not part of CGT.

Who collects it?

NCCPL has been mandated by the FBR to compute, determine, collect and deposit CGT on trades at PSX. Its system draws on data from the PSX trading system and the Central Depository Company (CDC), so most investors never calculate or pay the tax manually. NCCPL's own site publishes notices and guidance for investors and brokers.

What Changed in 2026: Finance Act 2026 and NCCPL Updates

Pakistan's Finance Act 2026 was enacted on 27 June 2026, and its amendments took effect on 1 July 2026 unless stated otherwise, according to KPMG Taseer Hadi's published brief. Three themes matter for PSX investors.

What stayed the same

The headline rates did not move. FBR's notified Tax Year 2027 rates keep 15% for shares bought on or after 1 July 2024 where the investor is on the ATL on both the purchase and sale dates. Government sources also said before the budget that no new tax would be imposed on trading in listed shares, and the Pakistan Stock Brokers Association welcomed the decision to maintain the existing framework (ProPakistani, 15 June 2026).

What changed

1. Higher burden for non-filers. The Finance Act 2024 had excluded tax collected under section 37A from the Tenth Schedule, which doubles withholding rates for people not on the ATL. The Finance Act 2025 narrowed that exclusion to shares bought from 1 July 2025. According to KPMG's brief, the Finance Act 2026 omitted the exclusion altogether, so tax collected under section 37A is increased by 100% for persons not on the ATL. (This is a professional reading of the Act; confirm the exact non-ATL figure for your holding in NCCPL's Tax Year 2027 rate notice.)
2. No opt-out from NCCPL. The Act omitted Rule 5 of the Eighth Schedule, which allowed a person to opt out of NCCPL's computation and collection. Anyone within section 37A is now mandatorily subject to the NCCPL process.
3. Wider NCCPL role. NCCPL's regime now covers non-banking finance companies, modarabas and, for debt securities, companies. For banks, insurers and mutual funds, NCCPL computes the gain but those entities still deposit the tax.
4. Super tax relief for most. For Tax Year 2027 onwards, the Act levies super tax at 8% only where income exceeds Rs 500 million for persons outside the specified sectors. Most retail investors are nowhere near that threshold.

NCCPL's Tax Year 2026 adjustment

Following a Federal Constitutional Court order dated 27 January 2026, NCCPL announced on 5 June 2026 that for Tax Year 2026 it would not compute or collect super tax on net capital gains where no CGT is payable because of the holding period. It also stopped adjusting CGT against super tax and said excess CGT would be refunded regardless of any super tax obligation (NCCPL notice, 5 June 2026).

For a wider picture of the budget, ICT's Pakistan Budget 2026-27 explainer covers salaried, freelancer and business changes, and the guide to the Income Tax Ordinance 2001 as updated in 2026 summarises the amended sections.

PSX CGT Rates for Tax Year 2027 (Disposals from 1 July 2026)

Source note: The table reflects the rates FBR notified for Tax Year 2027 under section 37A, as reported by Pkrevenue and shown in the Finance Act 2026 tax rate card. Effective 1 July 2026. These are enacted rates, not proposals.

How to read the table

Find your purchase date first, then, only if you bought between 1 July 2022 and 30 June 2024, check the holding period. For purchases from 1 July 2024, holding for longer does not reduce the rate.

Non-ATL investors

For shares bought on or after 1 July 2024 by people not on the ATL at both dates, FBR says individuals and associations of persons are taxed at the rates in Division I of the First Schedule, and companies under Division II. For individuals and AOPs the tax cannot be less than 15%. Layered with the Tenth Schedule change above, the practical result is a materially higher rate than for filers. Do not rely on a rule of thumb: check NCCPL's current non-ATL column for your acquisition period.

What about Tax Year 2026?

If you are reconciling the year to 30 June 2026, note that a flat 15% for shares bought from 1 July 2025 applied to ATL investors, and that NCCPL's notice for that year was reported to apply 15% to non-ATL investors too, while one professional summary describes slab rates for non-ATL investors. Sources differ, so use the figures printed on your own NCCPL certificate for that year rather than any table on a website, including this one.

ATL vs Non-ATL: Why Filer Status Decides Your Rate

The ATL is the FBR's list of taxpayers who have filed their returns. For PSX investors it has become the biggest single driver of the tax bill.

The two-date test

For shares bought on or after 1 July 2024, the 15% rate applies only if your name was on the ATL on the date you acquired the shares and on the date you disposed of them. Joining the ATL just before selling does not rescue shares bought while you were a non-filer.

Practical steps

• Check your status before you buy and before you sell. ICT's guides on checking your ATL status in 2026 and the FBR Active Taxpayer List, including the SMS check show the steps.
• If you are not on the list, follow ICT's walkthrough on how to become a filer in Pakistan. For definitions, see ATL explained and the difference between ATL, NTN, STRN and SECP registration.
• Mind the late-filing cost. The Finance Act 2026 raised the surcharge for being restored to the ATL after a late return to Rs 25,000 for individuals, Rs 50,000 for AOPs and Rs 100,000 for companies (KPMG brief). ICT covers this in its late filer surcharge guide.
• See the wider effect. Status affects far more than shares; ICT's filer vs non-filer comparison and non-filer tax rates guide set out the other rates.

How NCCPL Calculates and Collects Your CGT

NCCPL's published guide describes an automated system. In plain terms:

1. Transaction-level computation. CGT is computed on each transaction executed at PSX, using trading and depository data.
2. FIFO matching. NCCPL applies the First-In, First-Out method: the oldest shares you hold are treated as sold first.
3. Provisional amounts go to your broker. NCCPL passes provisional CGT to the clearing member (your broker).
4. Monthly collection. NCCPL collects aggregate CGT from clearing members through their settling banks. For example, tax on July 2026 disposals was due for collection on 8 September 2026 (NCCPL notice, 31 August 2026).
5. Costs and financing. NCCPL's guide says financing costs on leveraged products used to buy a security are taken into account, and capital losses within a financial year are set off against gains in the same year. Read the guide to see exactly which charges are included.
6. Annual certificate. NCCPL issues annual CGT certificates. Where you traded through a single broker, the certificate is normally provided through that broker. If you used several brokers, NCCPL issues it on request, and you can also collect from its offices in Karachi, Lahore or Islamabad with a CNIC (see Mettis Global's report on the 2023-24 certificates).

How to Calculate CGT on Your PSX Shares

Use this formula to estimate the tax before NCCPL does it:

Gain = sale proceeds − cost of acquisition. Tax = gain × the rate for your acquisition period and filer status.

Example 1: Single purchase, filer

You buy 1,000 shares at Rs 100 (cost Rs 100,000) in January 2025 and sell them at Rs 130 (proceeds Rs 130,000) in November 2026.

• Gain: Rs 30,000
• Rate: 15% (bought after 1 July 2024, on the ATL at both dates)
• Tax: Rs 4,500

Example 2: How purchase date changes the rate

The same Rs 100,000 profit, taxed for an ATL investor in Tax Year 2027:

Example 3: Two lots and FIFO

You hold two lots: 500 shares bought at Rs 100 in February 2023 and 500 bought at Rs 120 in August 2024. In November 2026 you sell 600 at Rs 150. (This ignores brokerage and charges, and assumes ATL status throughout.)

• Lot 1 (FIFO, 500 shares): gain Rs 25,000. Held about 3 years 9 months, so 7.5%: tax Rs 1,875.
• Lot 2 (remaining 100 shares): gain Rs 3,000. Bought after 1 July 2024, so 15%: tax Rs 450.
• Total: gain Rs 28,000; tax Rs 2,325.

Quick reference: tax at a flat 15%

Treat any online calculator with caution: check that it asks for your acquisition date and filer status, and compare its output with NCCPL's figure.

What Happens If You Sell at a Loss?

Section 37A(5) allows a loss on securities to be set off only against gains from other securities chargeable under the same section. The text as published by FBR also allows an unadjusted loss to be carried forward to later tax years, but for no more than three years after the year in which it arose. A loss cannot be set against salary or business income.

NCCPL's automated computation works on a financial-year basis, so ask your adviser how a carried-forward loss should be claimed in your return, and check the current wording of section 37A(5) before relying on it.

CGT vs Dividend Tax vs Trading Charges

These three are often confused, but they are separate.

Dividends from a company that pays no tax because of exemption, losses or credits are withheld at 25% for ATL investors and 50% for non-ATL, and mutual fund dividends are split by income source. These rates come from the FBR Withholding Income Tax Rate Card, updated to 30 June 2026. For the wider withholding picture, see ICT's withholding tax guide.

Shares versus mutual funds

For Tax Year 2027, FBR's notified rates for redemption of mutual fund units are 15% for individuals on both stock and other funds, and for companies 15% on stock funds and 25% on other funds. No CGT is deducted where units acquired on or before 30 June 2024 were held for more than six years (Pkrevenue).

What If the Sale Does Not Go Through NCCPL?

The NCCPL route applies to trades at the exchange settled through NCCPL. FBR has explained that capital gain on shares of a listed company disposed of otherwise than through a registered stock exchange, and not settled through NCCPL, is taxed under section 37 rather than section 37A (ProPakistani, 2023). If that applies to you, such as an off-market transfer, take professional advice before the sale, because the collection method and your reporting duties differ.

Declaring Your Shares in the Tax Return and Wealth Statement

NCCPL's deduction does not remove your own reporting duties. Work through this checklist:

1. Get your NCCPL annual CGT certificate for the year, from your broker or NCCPL.
2. Collect broker documents: contract notes, ledger, purchase and sale reports and your portfolio statement.
3. Match totals. Compare certificate figures (gain or loss and tax deducted) with your own records. Differences usually come from lots, corporate actions or multiple brokers.
4. Claim only what is verifiable. The Finance Act 2026 added a penalty equal to the excess where a taxpayer claims credit for withheld tax beyond the amount verifiably deducted and deposited (KPMG brief).
5. Declare holdings in your wealth statement; ICT's IRIS 2.0 wealth statement guide lists shares among declarable investments.
6. File correctly. ICT's step-by-step return filing guide, the documents checklist for Tax Year 2026 and the note on changes to the Tax Year 2026 return form cover the mechanics. Not sure you must file? Read who must file an income tax return.
7. If excess tax was deducted, see how refunds work in ICT's IRIS refund process guide.

Deadlines to know

The standard deadline for individuals' Tax Year 2026 returns was 30 September 2026. FBR extended it to 15 October 2026 under section 214A (ProPakistani, 30 September 2026), so as of 17 October that date has passed. Check FBR's official channels for any further notice, and keep ICT's Pakistan tax calendar 2026 handy for upcoming dates.

Common Mistakes PSX Investors Make

• Assuming the tax is on the sale price. It is on the gain.
• Ignoring the purchase date. One share can fall into a different band from another you bought later.
• Checking ATL status only at the time of sale. For shares bought from 1 July 2024, both dates matter.
• Forgetting multiple brokers. NCCPL certificates are provided through each broker, so combine them or request a consolidated certificate.
• Treating NCCPL deduction as the end of reporting. You still declare holdings and gains.
• Using an outdated rate table. Several websites still show Finance Act 2025 or earlier rules.
• Mixing up CGT, dividend tax and trading costs.

Expert Tips

• Keep a simple spreadsheet of purchase date, quantity and cost per lot. It makes FIFO checks straightforward.
• Before a large sale, ask your broker what NCCPL has already computed for you year to date.
• Re-check rates each July. The Finance Act changes every year, and several rates in this article depend on the Finance Act 2026.
• Use official sources for any figure you rely on: NCCPL notices, FBR rate cards and the updated Ordinance. Treat commentary and calculators as secondary.

Frequently Asked Questions

What is CGT on PSX shares? It is tax on the profit from selling listed shares, charged under section 37A of the Income Tax Ordinance, 2001 and collected by NCCPL.

What is the CGT rate on PSX shares for Tax Year 2027? For ATL investors, 15% on shares bought on or after 1 July 2024, 12.5% for purchases from 1 July 2013 to 30 June 2022, 0% for purchases before 1 July 2013, and a sliding scale from 15% to 0% for purchases between 1 July 2022 and 30 June 2024.

Is tax charged on profit or sale proceeds? Profit: sale proceeds minus cost.

How much tax do I pay on Rs 100,000 profit? At 15%, Rs 15,000. At 12.5%, Rs 12,500; at 7.5%, Rs 7,500; and nil for shares bought before 1 July 2013.

Does my purchase date matter? Yes. The acquisition date selects the rate band, and for 2022–2024 purchases, the holding period does too.

Do filers and non-filers pay the same? No. Non-filers pay more, and the Finance Act 2026 removed an exclusion that had limited the increase. Check NCCPL's non-ATL rate for your acquisition period.

How do I get my CGT certificate? Ask your broker, or request it from NCCPL if you used several brokers.

What if I sell at a loss? The loss can be set off only against gains on other securities under section 37A, with limited carry-forward under the Ordinance's wording.

Do dividends get the same tax treatment? No. Dividends are withheld at source, generally 15% for ATL and 30% for non-ATL investors.

Where do I verify current rates? NCCPL notices, the FBR rate card and the updated Income Tax Ordinance.

Conclusion

Tax on PSX share trading comes down to a short list of facts: it is charged on profit, NCCPL collects it, your purchase date selects the rate band, and your ATL status can double the burden. For shares bought on or after 1 July 2024, 15% applies to filers who were on the ATL at both dates, and the Finance Act 2026 has made non-filer status costlier.

The practical habits are equally simple. Check your status, keep lot-level records, collect your NCCPL certificate and reconcile it before you file.

If you want to go beyond understanding your own return, ICT offers two relevant routes. The Mastering the Stock Market course covers stock analysis, technical analysis and risk control for people who want to trade with discipline; see also ICT's guide to online stock market courses for beginners. If you want to advise others on income tax and FBR filing, the Certified Tax Advisor programme covers income tax, sales tax and IRIS filing, and you can browse every option on the ICT courses page. To find out which programme fits your goals, contact ICT's admissions team.