In a major step to boost foreign investments in Pakistan’s real estate sector, overseas Pakistanis are now eligible for tax exemptions under sections 236C and 236K, even if they are not listed on the Active Taxpayers List (ATL).
A recent notification from the Federal Board of Revenue (FBR) outlines a streamlined process for overseas Pakistanis holding Pakistan Origin Cards (POC) or National ID Cards for Overseas Pakistanis (NICOP). These individuals can now be exempt from higher tax rates under the Income Tax Ordinance, 2001, Clause 111AC, without being registered on the ATL.
To make the process more efficient, the FBR has introduced a new digital verification system via its IRIS platform. Non-resident taxpayers wishing to claim the exemption must upload their POC or NICOP details while creating a Computerized Payment Receipt (CPR). The system will generate a provisional PSID, triggering a faster verification process.
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According to an FBR official, the new system ensures that the verification process is completed within one business day, minimizing delays for applicants. The process includes multiple review stages, starting with the Chief Commissioners of Inland Revenue (CCIRs) and concluding with final approval from Commissioners of Inland Revenue (CIRs). Applicants will be notified via SMS and email once their application is approved.
This initiative, which applies across all tax offices, including Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Office (MTO), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), aims to make it easier for overseas Pakistanis to invest in the real estate sector. The move aligns with the government’s efforts to encourage foreign investment and support the country’s economic growth.
