Karachi: In a landmark move to encourage foreign investment in Pakistan’s real estate sector, the Federal Board of Revenue (FBR) has announced a tax relief initiative for overseas Pakistanis. Under this program, non-resident Pakistanis holding Pakistan Origin Cards (POC) or National ID Cards for Overseas Pakistanis (NICOP) are now exempt from higher tax rates under sections 236C and 236K of the Income Tax Ordinance, 2001, even if they are not listed on the Active Taxpayers List (ATL).
This exemption, outlined under Clause 111AC of the Income Tax Ordinance, is aimed at reducing financial barriers and simplifying the investment process for overseas Pakistanis. To facilitate this, the FBR has introduced a new digital verification system through its IRIS portal.
Overseas Pakistanis seeking tax relief must upload their POC or NICOP documentation when generating their Computerized Payment Receipt (CPR). The system will then generate a provisional PSID, initiating a streamlined verification process.
According to a senior FBR official, the verification process is designed to be completed within one business day, ensuring swift approval for applicants. The procedure involves oversight by Chief Commissioners of Inland Revenue (CCIRs) and final verification by Commissioners of Inland Revenue (CIRs). Successful applicants are notified immediately via SMS and email.
“This initiative represents a significant step forward in facilitating overseas Pakistanis,” the official stated. “It reflects our commitment to reducing bureaucratic hurdles and encouraging foreign investment in the real estate sector.”
The tax exemption process is being implemented across all tax offices, including Large Taxpayers’ Offices (LTOs), Medium Taxpayers’ Offices (MTOs), Corporate Tax Offices (CTOs), and Regional Tax Offices (RTOs).
The move aligns with the government’s broader economic objectives of promoting foreign investment and fostering economic growth. By streamlining the tax exemption process, the FBR hopes to make Pakistan a more attractive destination for overseas investors, particularly in the burgeoning real estate sector.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
