Islamabad, Dec 5: The Federal Board of Revenue (FBR) has made a significant move to support overseas Pakistanis by introducing a tax exemption under sections 236C and 236K of the Income Tax Ordinance, 2001.
As per the new rules, individuals holding a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP) are now exempt from the higher tax rates, even if they are non-filers or late filers.
The advance income tax under section 236C applies on the seller of immovable property and provision of section 236K in the case of buyer of immovable property shall apply on registration of immovable property but now overseas Pakistanis are exempted from higher rates of tax on sale and purchase of properties in Pakistan.
This exemption is granted under Clause 111AC, Part IV, Second Schedule, ensuring that overseas Pakistanis are no longer subject to the higher withholding tax rates.
The process for claiming the exemption involves uploading the POC/NICOP on the IRIS system during the creation of the CPR.
Once uploaded, a provisional PSID is generated, which is then verified by the Chief Commissioner Inland Revenue (CCIR) within one business day. Taxpayers will be notified of the approval via SMS or email.
With this new initiative, the FBR has streamlined the process to help genuine overseas Pakistanis by providing a more efficient way to claim exemptions, ensuring their tax burdens are reduced.
