A crackdown under income tax and anti-money laundering laws is now underway, and Pakistani residents who have invested at least 2 million AED in real estate in Dubai and the UAE are being identified through immigration data maintained by the Federal Investigation Agency (FIA), Business Recorder reported, citing sources. Â
From immigration data, property investors can be identified, and it can be determined whether their UAE property investments have been declared in their wealth statements. As per the report, most Pakistani residents have not declared their UAE property investments or any rental income and capital gains in their income tax returns in Pakistan.
Additionally, many have not paid Capital Value Tax (CVT) on foreign assets.
Thousands of Pakistani residents hold 10-year UAE golden visas (residence/Iqama) issued due to their investments. These individuals use their golden residence cards at Pakistan’s immigration counters, where they are scanned and saved in the FIA’s immigration portal.
The golden visa contains key details such as the individual’s name, passport number, profession as a property owner, and the card’s issue and expiry dates.
Tax experts say that while there is a tax treaty between Pakistan and the UAE, including provisions for exchanging information, the UAE has reportedly not shared this data with Pakistani authorities. Under the Automatic Exchange of Information treaty, financial data is not provided as UAE bank accounts are opened using the residence permit as an identity document, not a Pakistani passport.
These factors have contributed to a lack of declaration of UAE investments by Pakistanis. Informal remittances are often used for such investments, as they are inexpensive and easily accessible.
