Pakistan’s 15% Crypto Capital Gains Tax: What’s Real and What’s Not

There’s a rumor going around that Pakistan is cutting its crypto capital gains tax from 15% to 0%. If you’ve seen this on social media or a forum, you’re not alone. But here’s the truth: Pakistan has not lowered its crypto tax to 0%. As of December 2025, the flat 15% capital gains tax on cryptocurrency profits is still in full effect - and there’s no official plan to remove it.

Where Did the 0% Tax Myth Come From?

The idea that Pakistan might eliminate crypto taxes likely stems from confusion with countries like Portugal, Dubai, or El Salvador - places that truly do have 0% crypto tax regimes. But Pakistan isn’t one of them. The 15% rate was introduced in July 2025 under the Virtual Assets Ordinance, a move backed by the International Monetary Fund and shaped by the newly formed Pakistan Digital Assets Authority (PDAA). This wasn’t a sudden policy flip. It was the result of months of negotiations, international pressure, and internal economic review.

Some online posts mix up tax rules for different asset classes. For example, Pakistan does not tax cryptocurrency purchases or transfers between wallets - only the profit you make when you sell crypto for Pakistani rupees (PKR) or convert it to fiat. That’s where the 15% kicks in. But that’s not the same as a 0% tax. And there’s no law, no government announcement, no PDAA press release that says this rate is going away.

How the 15% Tax Actually Works

The 15% capital gains tax applies only when you sell crypto and make a profit. It doesn’t matter if you held Bitcoin for three days or three years - the rate is the same. That’s different from the U.S., where long-term holdings (over one year) get taxed at lower rates. In Pakistan, short-term traders and long-term holders pay the same.

Here’s how it breaks down:

• If you bought 1 BTC for ₨2,500,000 and sold it for ₨3,000,000, your profit is ₨500,000. You owe 15% of that: ₨75,000.
• If you bought 10 ETH for ₨800,000 and sold them for ₨1,200,000, your gain is ₨400,000. Tax due: ₨60,000.

There’s a small exemption: if your total annual crypto profit is under ₨50,000, you don’t pay tax. But that’s a very low threshold - roughly $180 USD. Most active traders will hit it quickly.

What Else Gets Taxed?

The 15% rule is just one piece. Other crypto income is taxed differently:

• Staking and mining rewards: Treated as regular income. Taxed at your personal income tax rate - from 5% to 35%, depending on how much you earn annually.
• Receiving crypto as payment: If you’re paid in Bitcoin or USDT for freelance work, that’s taxable income at your marginal rate.
• Businesses: Crypto-related businesses pay 29% corporate tax.
• Foreign transfers: If you move crypto profits out of Pakistan through Roshan Digital accounts, you may face an extra 10% tax.

And no, GST or VAT doesn’t apply to crypto trades - yet. But officials have hinted this could change in 2026.

Why the 15% Rate Stuck Around

When Pakistan first started talking about taxing crypto, people feared a 30% rate - like India’s. The 15% was seen as a win. But it’s not a win for everyone.

Here’s what experts say:

• Dr. Ayesha Siddiqa, Quaid-i-Azam University: “It’s a pragmatic middle ground. The government needed revenue, but didn’t want to kill the market.”
• Fahad Shahbaz, blockchain consultant: “No holding period discount means no incentive to hold. You’re punishing patience.”
• PwC Pakistan, January 2025 report: “The biggest problem isn’t the rate - it’s the lack of clear rules on how to calculate cost basis for crypto bought before 2025.”

Many users bought crypto years ago, before any regulation. Now they’re stuck trying to figure out what they paid for it in 2018 or 2020 - with no official exchange rate records. Some use CoinMarketCap averages. Others guess. Neither is legally safe.

How People Are Coping

With no official tax forms for crypto, most Pakistani users rely on third-party tools like Koinly and CoinTracker. These platforms auto-import transactions from Binance, Coinbase, and local exchanges like Rain. As of October 2025, over 28,000 Pakistani users have created accounts on these tools.

Still, problems remain:

• Exchange statements don’t always match up - especially between international platforms and local ones.
• The FBR website still doesn’t have a crypto-specific filing portal. You have to manually fill out Form IT-1 and attach transaction logs.
• Many chartered accountants don’t know how to handle crypto gains. The FBR is running training sessions for 5,000 accountants through early 2026 - but most aren’t trained yet.

On Reddit, users like ‘CryptoIslamabad’ complain: “I spent 22 hours last year just tracking my trades. I’m not a tax accountant.”

How Pakistan Compares to Neighbors

Here’s how Pakistan stacks up regionally:

Pakistan’s rate is lower than India’s, but higher than Bangladesh’s proposed 10%. It’s on par with Thailand - but without the same level of infrastructure. The UAE’s 0% rate is drawing serious investors away. Pakistan’s market is growing - 12.7 million users as of September 2025 - but it’s mostly retail traders, not institutions.

What’s Coming Next?

There’s no 0% tax coming - but there might be changes.

In October 2025, the PDAA released draft guidelines for “long-term holding incentives.” That means they’re considering:

• Reducing tax to 10% if you hold crypto for over one year
• Lowering it further to 5% if you hold for two years

Deloitte Pakistan predicts this change could happen by mid-2026. But until then, the 15% rate stands.

Also, the FBR plans to start automatically receiving transaction data from exchanges like Binance Pakistan and Rain by March 2026. That means if you didn’t report your gains, they’ll find out.

What Should You Do?

If you’re trading crypto in Pakistan:

1. Track every transaction - buys, sells, swaps, staking rewards. Use Koinly or CoinTracker.
2. Don’t assume the 0% myth is true. File your taxes at 15% on profits over ₨50,000.
3. Save all records - even screenshots of old trades. The FBR may ask for them.
4. Wait for the 2026 update - if long-term discounts arrive, you’ll want to adjust your strategy.

There’s no shortcut. The system is messy, but it’s real. Ignoring it won’t make it disappear - and the FBR is getting better at catching people.

Final Reality Check

Pakistan didn’t drop its crypto tax to 0%. It didn’t even come close. The 15% rate is here to stay - for now. And while it’s not perfect, it’s the most stable crypto tax regime in South Asia after India.

Don’t believe the rumors. Don’t rely on forum posts. Check the PDAA website. Read the FBR’s official notices. And if you’re unsure, talk to a chartered accountant who’s trained on crypto - not the one who still thinks Bitcoin is a pyramid scheme.

The market is growing. The rules are getting clearer. But the tax? It’s not going away. Not anytime soon.