NCCPL waives Capital Gains Tax fee for small investors

The National Clearing Company of Pakistan Limited (NCCPL) has approved amendments to its regulations, waiving the annual capital gains tax (CGT) fee for investors with annual traded values below PKR 500,000.

Under the amendments to the NCCPL Regulations, 2015, the fixed annual CGT fee for investors with traded values below PKR 500,000 has been reduced from PKR 100 to zero. Investors with annual traded values from PKR 500,000 to less than PKR 5 million will continue to pay an annual fee of PKR 200.

Futures commodity contracts

The revised fee structure also applies to local and foreign investors trading futures commodity contracts on the Pakistan Mercantile Exchange Limited (PMEX). The annual CGT fee for investors with traded values below PKR 500,000 has been waived, while those in the PKR 500,000 to less than PKR 5 million category will continue to pay PKR 250.

Relief on maintenance fees

The amendments also provide relief from recurring Unique Identification Number (UIN) maintenance fees. NCCPL will charge the fee upon an investor’s registration, but waive it in subsequent years if the investor has not executed any trades during the entire year. UIN maintenance fees for Sahulat Accounts will be waived both at registration and in subsequent years.

Under amendments to the Centralized Know Your Customer (CKO) Organization Regulations, 2017, the CKO maintenance fee will also be charged upon an investor’s registration but waived in subsequent years if no trading activity takes place during the entire year. The CKO maintenance fee for Sahulat Accounts will also be waived at registration and in subsequent years.

The approved amendments relate to the fee, charges and deposits schedules under both regulatory frameworks, NCCPL said in a notice to market participants.