FBR Announces Tax Exemption for Overseas Pakistanis Not Listed on ATL
FBR has announced a new update for overseas Pakistanis. Now, Pakistani citizens living abroad can qualify for tax exemptions under sections 236C and 236K, even if they are not listed on the Active Taxpayers List (ATL).
It particularly assists holders of a Pakistan Origin Card, also known as POC, or a National Identity Card for Overseas Pakistanis, also called NICOP.
Main Change: Exemption from Taxes without ATL
A letter recently received from the FBR clarified that non-resident Pakistanis can now receive tax relief under Clause 111AC of the Income Tax Ordinance, 2001. This is part of a larger effort to simplify the tax process and encourage investment from overseas Pakistanis, especially in sectors like real estate.
How does it work?
To ease this process the FBR has introduced a new electronic verification system through its IRIS platform. The computerized payment receipt of these non-resident Pakistanis applying for tax exemptions will have to upload, the details of their POC or NICOP. It will then generate the provisional PSID and most. probably complete the verification within one working day.
A senior FBR official mentioned that this system is a big improvement in making the tax exemption process quicker and easier for overseas Pakistanis.
Verification Process
The verification process is done in two stages:
Initial Review: The Chief Commissioners of Inland Revenue (CCIRs) will do the first review.
Final Verification: The Commissioners of Inland Revenue (CIRs) will do the final check.
After successful verification, the applicants will receive an SMS and an email notification.
Where to Apply?
The new system is accessible at all FBR offices, including Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs). Thus, overseas Pakistanis can easily apply for exemption from anywhere.
This move by the FBR intends to simplify the bureaucracy so that overseas Pakistanis are able. to invest in Pakistan, particularly in real estate, for the overall success of the government’s broader economic objectives.
