KARACHI – The Federal Board of Revenue (FBR) has announced a major tax relief for overseas Pakistanis on transaction of properties, local media reported.
The top tax authority has issued directives to all tax offices to extend relief to the expatriates on taxes regarding sale and purchase of immovable properties.
The exemptions have been announced under Clause 111AC, introduced through the Finance Act, 2022, which amends the Income Tax Ordinance, 2001.
The Clause 111AC exempts non-resident individuals holding National Identity Card for Overseas Pakistanis (NICOP) or Pakistan Origin Card from higher tax rates under Sections 236C and 236K, even if they are not included in the Active Taxpayers List (ATL).
How to Avail Tax Relief on Properties
The overseas Pakistanis and non-residents are required to upload their NICOP or POC on IRIS system while general withholding tax challan.
The system will generate a provisional Payment Slip ID (PSID) and it will be sent to the Chief Commissioner Inland Revenue (CCIR) by the overseas Pakistani for review.
The tax exemption will be approved after verifying the non-resident status of applicant. The taxpayer will be notified via SMS and email, enabling them to avoid higher tax rates.
