KARACHI: Overseas Pakistanis can now enjoy exemption from higher taxes under Sections 236C and 236K, regardless of their inclusion on the Active Taxpayers List (ATL). This significant move aims to attract international investors and boost Pakistan’s real estate market.
The Federal Board of Revenue (FBR) has significantly simplified the process for overseas Pakistanis carrying Pakistan Origin Cards (POC) or National ID Cards for Overseas Pakistanis (NICOP), according to a letter that was released recently.
The Income Tax Ordinance, 2001, Clause 111AC, expanded the eligibility of non-resident individuals to be exempt from higher tax rates under sections 236C and 236K. This exemption applies regardless of whether they are listed on the Active Taxpayers List (ATL).
Streamlined Digital Verification System
In order to streamline this procedure, the FBR has integrated a new digital verification system called IRIS. Taxpayers who do not currently reside in the country and are requesting an exemption now need to attach supporting documents such as a POC or NICOP when they create their CPR. A simplified verification process will be initiated when the system generates a provisional PSID.
“This new system represents a significant step forward in facilitating overseas Pakistanis,” remarked a senior FBR official. “The verification process has been designed to be completed within one business day, ensuring minimal delays for applicants.”
Efficient Verification Procedure
The verification process involves multiple levels of inspection:
- Initial Review: Conducted by the Chief Commissioners of Inland Revenue (CCIRs).
- Final Verification: Handled by Commissioners of Inland Revenue (CIRs).
Applicants are notified immediately via email and text message upon approval.
This program is being rolled out throughout all tax offices, including the Large Taxpayers’ Office (LTO), the Medium Taxpayers’ Office (MTO), the Corporate Tax Office (CTO), and the Regional Tax Office (RTO), guaranteeing that all qualified Pakistanis living abroad are covered. The move is meant to make it easier for Pakistanis living outside of Pakistan to invest in the country’s real estate market. This is in line with the government’s larger economic goals of attracting foreign investment.
