Key Highlights of the Update:
- Overseas Pakistanis with a POC or NICOP can pay advance tax at filer rates on property transactions, even if they are non-filers.
- Must be non-resident in Pakistan (stay less than 183 days in a financial year).
- Buyers purchasing properties valued up to Rs50 million:
- Filers: 1.5 percent
- Late filers: 4.5 percent
- Non-filers: 10.5 percent
- For properties exceeding Rs100 million, non-filers may pay up to 18.5 percent.
- Sellers are also taxed based on transaction value and filer status.
- To benefit, POC or NICOP details must be declared on the FBR portal.
The Federal Board of Revenue (FBR) has officially announced that overseas Pakistanis can now pay advance tax at filer rates when buying or selling property in Pakistan, even if they are non-filers, provided they meet specific conditions.
According to the latest clarification, overseas Pakistanis holding a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP) will be eligible for this relief. They must also be non-resident in Pakistan, meaning their stay in the country during the financial year does not exceed 183 days.
Under Sections 236C and 236K of the Income Tax Ordinance, advance income tax is charged on the purchase and sale of immovable properties based on the property’s market value and the filer status of the individual.
Similarly, for sellers, the advance tax rate depends on the transaction value. If the sale amount does not exceed Rs50 million, the tax rate is 4.5 percent for filers, 7.5 percent for late filers, and 11.5 percent for non-filers. For properties above Rs100 million, the rate for filers increases to 5.5 percent, while late filers are charged 9.5 percent.
To avail this facility, eligible overseas Pakistanis must declare their POC or NICOP number on the FBR’s web portal. The system will then generate a Payment Slip Identity (PSID). Once the concerned authority verifies the documents, the payment is approved at the filer rate.
This move is seen as a positive step for overseas Pakistanis looking to invest in Pakistan’s real estate sector, providing them with fair tax treatment and encouraging greater investment in the country.
If you are an overseas Pakistani planning to buy or sell property in Pakistan, ensure your POC or NICOP information is updated on the FBR portal to benefit from this new policy.
For more information and FAQs, please visit the official FBR page for Overseas Pakistanis.