Karachi, June 30, 2024 – The Federal Board of Revenue (FBR) has introduced a new tax regime for builders and developers through the Finance Act, 2024, aiming to streamline taxation in the real estate sector.According to details outlined in the Finance Act, 2024 and commentary provided by A. F. Ferguson & Co., builders and developers will now be subject to specific tax rates based on their activities:1. Construction and Sale of Buildings: Builders and developers involved in the construction and sale of residential, commercial, or other buildings will be taxed at a rate of 10% on their taxable profits from these activities.2. Development and Sale of Plots: For those engaged in the development and sale of residential, commercial, or other plots, the applicable tax rate stands at 15%.3. Combined Income: If a builder or developer derives income from both construction and sale of buildings as well as development and sale of plots, a composite tax rate of 12% will apply on their taxable profits from these combined activities.The Act specifies that taxpayers must accurately account for the nature and source of credited amounts or investments, ensuring that no credits are claimed in excess of taxable profits computed under the prescribed rates. However, if actual taxable…