FAQs for Income Tax Return Filing in Pakistan
Following are the FAQs for Income Tax Return Filing in Pakistan.
Asalam alaikum.
I am a non-resident overseas Pakistani. I have no earning in Pakistan, and have never earned previously any income in Pakistan. I am looking for professional legal advise and support to help me become a filer in Pakistan and have an active tax-payer status. Can your firm please help me in this regard?
I look forward to hearing from you.
Best regards,
Thank you for email and in our tax return filing services for Non-residents.
As you are non-resident so you are required to declare any income earned outside Pakistan, but in order to become filer you have to file income.
I am a overseas Pakistani working in UAE for last 15 years. My stay in Pakistan is always less than one month per year.
I am a tax filer for last two years and declared my property and bank accounts as maintained in Pakistan. However I did not declare my property and bank accounts i am having in UAE..
Under present Tax laws do I need to declare my overseas property and bank accounts while I am a overseas Pakistani.
Your kind advise will be appreciated with thanks.
Best regards,
Thank you for the email and query.
First of all as a non-resident you were not supposed to declare income or assets at all.
A simple NIL return is required to be filed and we only have to report Taxes deducted, if any, during tax year.
Now you have declared your assets in Pakistan but failed to declare assets accumulated outside Pakistan as you are owner in both the countries you have to be just with your declarations.
Now either you revise your wealth statement and wait for FBR notice(hire someone to represent FBR in case of notice is served, as Pak Government already has your details with them of your assets in UAE). Or avail amnesty scheme!
I am Canadian citizen and here in Canada since April 2015. Let me know how can I become a tax filer in Pakistan. I heard that there are numerous advantages for a filer. How can you help me and how much charges. I have a property in Pakistan as well.
Dear Sir
Thank you for email and in our tax return filing services for Non-residents.
As you are non-resident so you are required to declare any income earned outside Pakistan, but in order to become filer you have to file income.
Asalam Alaikum
RESPECTED SIR,
I AM WORKING IN U-A-E AND I AM GETTING SALARY ( 135000 PKR ).
HOW MUCH I COULD PAY INCOM TAX WITH ( 135000 PKR ) SALARY.
AND WHAT DOCUMENT REQURIED FROM ME TO BECOM I ATL ( ACTIVE TAXPAYERS LIST )
THANKS
Kind regards,
Dear Sir
Your salary of Rs.135,000/- is exempt under section 111 sub-section 4 of the Income Tax Ordinance, 2001 because you don’t have to pay any tax on this salary.
To be a filer (ATL Active Taxpayers List) I need following information: –
- CNIC Number
- Email address
- Mobile number in Pakistan
- Address in Pakistan
We need above information to register you and file income tax return.
Dear sir
Assalam o alaikum
I just saw your article regarding non resident Pakistanis. I am an expatriate since 5 year. I am also tax filer. I purchased 10 marla residential plot recently in bahria town lahore. I want to declare this plot in my returns but my lawyer is saying that I don’t need to declare this plot. I am very confused whether it should be declared or not.
Kindly guide me in this issue.
Regards
Dear Sir
As a non-resident you are not required to declare any assets, says the Income Tax Ordinance, 2001.
However, if you have sending money to Pakistan through Hundi or by hand then there will be problem but if you are sending through proper banking channel then no problem.
Hi,
I need information regarding declaring plot in my annual income tax return. I purchased 1 kanal plot in 2017 and purchased 6 marla plot in about 2014. I want know do I need to declar these if yes in which years’ statements ? Do I have to pay tax on this ? as I purchased this with my legitimate savings. Could you please clarify on this and also how much you charge to file income tax return annually ?
Thank you
Hi
Thank you for the email.
In which country are you residing?
Funds remitted to Pakistan were through proper banking channel?
If Funds used to buy property were transferred legally through proper channel then you don’t to pay tax in amnesty.
If you are a non-resident and have stayed more than 183 days out of Pakistan you don’t have yo declare assets.
However, if you have any Pakistan source income then we have to declare it in income tax return.
Waheed Ensari
+92 321 8408828
Dear Sir
I am a not resident having NICOP . I have no income inside Pakistan but I have plot in DHA .
Is it mandatory for me to become a tax filer .
Waiting for your reply .
Dear Sir
There is no problem in being a non-resident and own property/house/plot/shops in Pakistan and neither it is mandatory to become filer but if in future you want to buy and sell property you have to become filer in order to save taxes.
As tax on filer is lesser or zero as compared to non-filers.
Hello Sir,
I am an American citizen sinner several years and used to send money to Pakistan. My wife made several trips to United States but she was not intended to live permanently in USA and wanted to be a Pakistani citizen and never applied for her immigration to the USCIS.
Since she is a non tax filer as she has no other income in Pakistan and depends on me as well as on her children who are also American citizens living in the USA.
She has purchased some properties in Pakistan with her savings worth about more than Rupees hundred million including her dollar account in Pakistani Banks.
I want to know if she is still responsible to declare her assets in Pakistan being a non filer Citizen of Pakistan with no income in Pakistan as I am an American and Overseas Pakistani citizen filing my tax returns every year in the USA since last 21 years. Kindly advise me clearly if she still needs to declare her assets.
Thanks in advance for your early response.
Dear Sir
Thank you for contacting us.
- As a non-resident person you are not required to file income tax return in Pakistan but if you have Pakistan source income then you are required to file tax return.
- If your wife is living in Pakistan then she is required to file returns, please clarify that is she Pakistani or US Citizen, I couldn’t get your point of view on this.
- Filing of return and declaring of assets in amnesty scheme are 2 different things so please don’t be confused on these
- And if your wife is non-resident living outside Pakistan then as a non-resident person she is not required to file income tax return in Pakistan but if she have Pakistan source income then she is required to file tax returns
- Now the question that she depends on you for household expenditure and other, in this case I assume that the remittances/ funds that you send to Pakistan are through proper banking channel and not through Hundi/ carrying cash to Pakistan by any means.
- If you have been sending money to Pakistan legally i.e. through proper banking channel then you need not to worry about anything as any fund transferred legally are exempt from taxes in Pakistan with an upper limit of PKR10 million in a single tax year.
- Now the properties purchased by her: If those properties are purchased from the money that you sent legally then there is no need to declare them in Amnesty Scheme
- What is amnesty scheme: The government has given an opportunity to declare any illegal/ illegitimate / unexplained income/assets inside or outside Pakistan
- Your observation of her (your wife) not having any income in Pakistan wrong. Because the funds that you remit to her on monthly/quarterly basis are your savings that you spend and remit. So these remittances are her income (exempt income) in Pakistan
I believe he above reply is sufficient and answers all your questions/ addresses all your concerns.
Having said all this if she is a resident person in Pakistan it would be advisable that she start filing/ submitting her normal income tax returns each year, why?
- If she is a filer and compliant citizen she will enjoy benefits of being a filer of being charged with lower rates of taxes
- She will be invisible to FBR as all her income is exempt as its foreign remittance
- She would be able to buy properties by paying lesser/ zero taxes
- Being a non-filer and paying more than normal taxes makes you visible on the tax radar that allow tax officials to look into the fact that why a citizen is paying more tax when excessive taxes can be saved by changing the status to filer.
Have a nice day.
Read our blog on How Do I Become a Tax Filer in Pakistan?
To know more about non-resident tax filing write us at info@thebscon.com or call +92 321 8408828.
