Islamabad, Dec 2: Overseas Pakistanis must now seek approval from the Commissioner Inland Revenue (FBR) to confirm their non-resident status and qualify for tax rates applicable to “filers” on immovable property transactions. This requirement is part of updated clarifications issued by the Federal Board of Revenue (FBR) regarding withholding tax challans under sections 236C and 236K of the Income Tax Ordinance.
Real estate experts have dismissed rumors of new exemptions for overseas Pakistanis, emphasizing that the provisions have been in place until June 30, 2024. The FBR has replaced the “non-resident” category with “late filers” on its portal, causing additional complexities.
Under the Finance Act 2022, non-residents with Pakistan Origin Cards (POC) or National ID Cards for Overseas Pakistanis (NICOP) were already exempt from sections 100BA and Rule 1 of the Tenth Schedule for property transactions. However, the new requirement mandates uploading proof of non-resident status for verification.
The FBR’s updated process involves submitting POC or NICOP information via the IRIS system, generating a provisional PSID sent to the Chief Commissioner Inland Revenue (CCIR). The CCIR will assign the case to the Commissioner Inland Revenue (CIR), who will verify and approve the exemption if satisfied. Taxpayers will be notified of the decision via SMS or email.
Despite assurances of expedited processing within one business day, experts predict the new conditions will prolong the exemption process, making it harder for overseas Pakistanis to access benefits already guaranteed by law.
