The Federal Board of Revenue (FBR) has granted overseas Pakistanis exemptions from higher tax rates under Sections 236C and 236K of the Income Tax Ordinance, 2001, even if they are not listed on the Active Taxpayers List (ATL).
According to a recent FBR notification, non-resident Pakistanis holding Pakistan Origin Cards (POC) or National ID Cards for Overseas Pakistanis (NICOP) are now eligible for this exemption under Clause 111AC of the ordinance.
The FBR has introduced a digital verification system through its IRIS platform to facilitate the exemption process. Non-resident taxpayers must upload their POC or NICOP details while generating their Computerized Payment Receipt (CPR). The system will generate a provisional PSID, initiating the verification process, which is designed to be completed within one business day.
“This initiative is a major step forward in simplifying processes for overseas Pakistanis,” said a senior FBR official.
The verification involves multiple layers of scrutiny. Chief Commissioners of Inland Revenue (CCIRs) conduct the initial review before forwarding cases to Commissioners of Inland Revenue (CIRs) for final approval. Applicants are notified of the decision via SMS and email immediately after approval.
The initiative has been implemented across all tax offices, including Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), to ensure nationwide coverage for all eligible overseas Pakistanis.
This policy is expected to remove bureaucratic hurdles for overseas Pakistanis and incentivize investments in Pakistan’s real estate sector.
