FBR eases tax burden on property transactions for expatriates.

Islamabad, December 4, 2024: The Federal Bureau of Revenue (FBR) has relieved expatriates from the tax burden on property transactions. This is to encourage them to invest in small, immovable properties.

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The relief is allowed under Clause 111AC, incorporated through the Finance Act of 2022 into the Income Tax Ordinance of 2001. This clause relieves persons who are not residents of Pakistan but hold a NICOP or POC from the tax rates higher than the normal rate under sections 236C and 236K of the ordinance. More importantly, these exemptions are irrelative to the ATL. In other words, one cannot be exempted from paying tax due to failure to be listed under the ATI.

To avail of the other tax exemptions, non-residents must scan and upload NICOP or POC to FBR’s IRIS system while filing a general withholding tax challan. Once the user submits the payment request, the system produces a provisional Payment Slip ID (PSID). This ID is then submitted to the CCIR to check the applicant’s non-resident status per the application.

Once the process is completed, the tax exemption is approved. The taxpayer is then notified via email and SMS. This will lessen the financial strain on the expatriates, and they can bypass the high tax rates.

The streamlined, user-friendly tax exemption process for expatriates will allow them to do business and contribute to enhancing the country’s economy. It’s a win-win situation for both the country and the expatriates.

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