DJP Collaborates with Australian Tax Office to Boost Crypto Tax Compliance

Previously, in an effort to stabilize Pakistan's struggling economy and obtain an important loan funding package of USD 3 billion or the equivalent of IDR 47.2 trillion (assuming an exchange rate of IDR 15,735 per US dollar) from the International Monetary Fund (IMF), the country was urged to implement stricter tax measures.

Reporting from Coinmarketcap, Tuesday (19/3/2024), one of them is tax on capital gains from cryptocurrency investments and real estate transactions.

During the ongoing review talks between the IMF and Pakistani authorities regarding the USD 3 billion standby arrangement (SBA), the global lender has recommended that the Federal Board of Revenue (FBR) expand the scope of Capital Gains Tax (CGT) by including cryptocurrencies in the net tax.

The IMF also called for a review of taxes on real estate and securities to ensure all profits would be taxed, regardless of the holding period.

As part of the proposed measures, property developers in Pakistan may be required to track and report all transfers of interest in real property prior to settlement and registration of title to the property.

Failure to comply with these new regulations may result in fines, including secondary liability for unpaid taxes. This step aims to make the practice of buying and selling various plots of land in housing schemes within the tax net.

If Pakistan agrees to these terms, the IMF is expected to disburse around USD 1.1 billion or the equivalent of IDR 17.3 trillion as the final tranche of the rescue package Pakistan obtained last summer, which helped the country avoid default on its sovereign debt.