The Federal Board of Revenue (FBR) has clarified that overseas Pakistanis will be subject to the “filer rate” for advance income tax on the purchase and sale of immovable properties, even if they are non-filers, provided they meet certain conditions.
The FBR issued a set of frequently asked questions (FAQs) to address tax rates on real estate transactions by overseas Pakistanis.
The authority specified that individuals holding a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP) and who are non-resident in Pakistan (spending less than 183 days in the country during a financial year) would be eligible for the filer rate.
The FBR explained that the tax rates for advance income tax under sections 236C and 236K vary based on the fair market value of the property and the filer status of the individual. Overseas Pakistanis holding POC or NICOP can avail the filer rate by following a set process outlined on the FBR’s web portal.
The process involves registering through the “Overseas Pakistanis” link on the FBR portal, creating a Payment Slip Identity (PSID), submitting documents, and obtaining approval from the concerned Commissioner. Once verified, the system allows individuals to pay the advance tax at the filer rate.
This clarification aims to streamline the tax process for overseas Pakistanis engaged in property transactions while ensuring compliance with tax laws.
