The Federal Board of Revenue (FBR) has announced a significant update regarding tax exemptions for overseas Pakistanis, allowing them to qualify for relief from higher tax rates under sections 236C and 236K, even if they are not listed on the Active Taxpayers List (ATL).
This change particularly benefits those holding Pakistan Origin Cards (POC) or National ID Cards for Overseas Pakistanis (NICOP).
According to a recent letter issued by the FBR, non-resident individuals can now access these exemptions under Clause 111AC of the Income Tax Ordinance, 2001. This move is part of a broader effort to streamline the tax exemption process for overseas Pakistanis, facilitating their investments in Pakistan.
To support this initiative, the FBR has implemented a new digital verification system through its IRIS platform. Non-resident taxpayers seeking exemptions must upload their POC or NICOP documentation when creating their Computerized Payment Receipt (CPR). The system will then generate a provisional PSID, triggering an efficient verification process designed to be completed within one business day.
“This new system represents a significant step forward in facilitating overseas Pakistanis. The verification process has been designed to ensure minimal delays for applicants,” senior FBR official noted.
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The verification involves multiple layers of scrutiny, starting with Chief Commissioners of Inland Revenue (CCIRs) conducting the initial review, followed by Commissioners of Inland Revenue (CIRs) for final verification. Successful applicants will receive immediate notifications via SMS and email.
This initiative is being rolled out across all tax offices, including Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs), ensuring comprehensive support for eligible overseas Pakistanis. The FBR’s actions aim to significantly reduce bureaucratic hurdles and encourage foreign investment in Pakistan’s real estate sector, aligning with the government’s broader economic objectives.
