Islamabad, July 5, 2025: The Federal Board of Revenue (FBR) has clarified that the rate of advance income tax on the purchase and sale of immovable properties by overseas Pakistanis will be considered at the “filer rate” even if they are classified as “non-filer”.
The FBR has released frequently asked questions (FAQs) regarding the tax rates applicable on buying and selling of immovable properties by overseas Pakistanis.
As per the FBR, for overseas Pakistanis, the rate of advance income tax on purchasing and selling of immovable properties under sections 236C and 236K shall be applied at the “filer rate” even if they fall under the category of “non-filer” provided the following conditions are fulfilled:
- They possess a POC or NICOP,
- They are non-residents in Pakistan, meaning their stay in Pakistan during a financial year is less than 183 days.
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- The advance income tax under sections 236C and 236K at the time of transaction of immovable properties varies based on the fair market value of the properties, along with the filing status of the individual, whether they submitted their income tax return on time or failed to do so.
- The FBR stated that overseas Pakistanis holding POC or NICOP can benefit from the “filer rate” under sections 236C and 236K by following this process:
- The relevant Authority, Registrar, or Housing Society responsible for registration, transfer, or record of the property shall select the “Overseas Pakistanis” option on the FBR’s web portal to generate a PSID (payment slip ID).
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- The portal will then lead the user to a form where they can input their POC or NICOP number; the system will automatically retrieve their details including name and address; upload a scanned image of their POC or NICOP; indicate their status as “resident” or “non-resident,” and upload necessary supporting documents.
- The system will electronically send the PSID to the digital IRIS inbox of the concerned Commissioner for validation. The Commissioner will examine the attached documents, approve them upon verification, and notify the applicant through email and SMS.
The system will then enable the individual to pay advance income tax at the “filer rate” even if they are classified as a “non-filer,” the FBR concluded.
