The Federal Board of Revenue (FBR) has granted overseas Pakistanis exemptions from high tax rates under Sections 236C and 236K of the Income Tax Act, 2001, even if they are not on the Active Taxpayers List (ATL).
As per the latest FBR notification, non-resident Pakistanis holding Pakistani Origin Cards (POC) or National Identity Cards for Overseas Pakistanis (NICOP) are now eligible for this exemption under Section 111AC of the Act.
The FBR has introduced a digital verification system through its IRIS platform to facilitate the exemption process. Non-resident taxpayers must upload their Proof of Ownership (POC) or NICOP details while generating their Computerized Payment Receipt (CPR). The system will generate a temporary PSID, to initiate the verification process, which is designed to be completed within one business day.
“This initiative is a big step forward in simplifying operations for overseas Pakistanis,” a senior FBR official said.
Verification involves multiple layers of scrutiny. Senior Commissioners of Inland Revenue (CCIRs) conduct the initial review before referring cases to the Commissioners of Inland Revenue (CIRs) for final approval. Applicants are notified of the decision via SMS and email immediately upon approval.
The initiative has been implemented in all tax offices, including Large Taxpayer Offices (LTOs), Medium Taxpayer Offices (MTOs), Corporate Tax Offices (CTOs) and Regional Tax Offices (RTOs), to ensure nationwide coverage for all eligible overseas holders. . Pakistanis.
This policy is expected to remove bureaucratic hurdles for overseas Pakistanis and stimulate investments in the real estate sector in Pakistan.