Taxes and Charges 2022 - 2023 July 2022

Types of Transactions Type Individual’s Account Institutional’ s Account

Front End Load Revenue Charge Fund Specific Fund Specific
Government TAX (Sindh Sales TAX) + Withholding 13% on FEL 13% on FEL
Withholding TAX on Dividend (All funds) ++ Withholding 15% Filer 30% Non-Filer 15% Filer 30% Non-filer
Withholding TAX on Bonus +++ Withholding 0% 0%
Capital Gain TAX on Equity Funds ++++ Gain Tax 10% Filer 1 20% Non-Filer 1 10% Filer 1 20% Non-Filer 1
Capital Gain TAX on Other Funds Gain Tax 10% Filer 1 20% Non-Filer 1 25% Filer 1 50% Non-Filer 1
Back End / Contingent Load Fund Charge Fund Specific Fund Specific
Management Fees Revenue Charge Fund Specific 2 Fund Specific 2
PAC – Price Adjustment Charges Fund Charges 1% of NAV in MGF/ MTPF-GSF 3 1% of NAV in MGF/ MTPF-GSF 3
Transaction Cost Fund Charge 0.25% of Transaction in KMIF 4 0.25% of Transaction in KMIF 4
TAX on VPS (Withdrawal in access of 50% at maturity) +++++ Last 3 years avg. Tax Rate of Investor or highest Tax Rate (as applicable) on
(only encashment of 50% at retirement is free of tax) Withholding
Withdrawal amount or Monthly Income amount or Growth Units investment

References: Taxes - Income Tax Ordinance (ITO)

1. Dividend receipts < capital gain, + Notification No. SRB-3- 4/7 /2013 dated 18th June, 2013
CGT = 12.5% Filer and 25% Non-Filer ++ Section 150 for Dividend
2. Already adjusted in Daily NAV +++ Section 236 M for Bonus units
3. Applied on Investment, Redemption & Conversion (In and out) ++++ Section 37 A for CGT
4. Applied on Investment & Convert In +++++ Section 23 A applicable for tax on withdrawal (in case of withdrawal
before retirement age or withdrawal at the time of or after retirement age in excess of fifty percent of the
accumulated balance) and Section 23B removed for tax free withdrawal
Related Updates:
• Section 62 of ITO 2001 has been removed resulting removal of tax credit on units of
mutual funds. Exemption Certificate For Corporate Accounts;
• Exemption of CGT is increased from 4 years to 6 years. 159(1)/150 for Dividend Tax | 37A for CGT | Recognition
• Individual’s tax rate/slabs has been increased on salary / income. Certificate of Retirement funds (for CGT exemption)
• Profit on debt from government securities has been included in profit on debt category
which was taxed at 15% full and final, previously.