The Federal Board of Revenue (FBR) has clarified that overseas Pakistanis will be charged advance tax on the purchase and sale of immovable properties at the “filer rate,” provided they meet certain conditions.
According to a news report, the conditions include holding a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP), and being non-residents in Pakistan—meaning their stay in Pakistan during the financial year is less than 183 days.
Under sections 236C and 236K, the advance income tax rates on property transactions differ depending on the property’s market value and the filer status of the individual.
For instance, for purchases of properties with a market value up to Rs50 million, filers will be taxed at 1.5%, while late filers will face a 4.5% tax rate, and non-filers will pay 10.5%. Rates increase for higher-value properties, with the highest tax rate of 18.5% for non-filers on properties exceeding Rs100 million.
For sellers, the tax rate also depends on the transaction value. If the amount does not exceed Rs50 million, the tax rate for filers is 4.5%, for late filers 7.5%, and for non-filers 11.5%. The tax rate increases to 5.5% for filers and 9.5% for late filers on sales exceeding Rs100 million.
To avail the “filer rate,” overseas Pakistanis must declare their POC or NICOP number on the FBR’s web portal, and the system will generate a payment slip identity (PSID). The concerned authority will verify the documents and approve the payment, allowing the person to pay the advance tax at the filer rate.
