Overseas Pakistanis no longer need ATL status for property tax exemptions

ISLAMABAD: Overseas Pakistanis can avail tax exemptions, even if they are not on the Active Taxpayers List (ATL), thanks to a new move by the Federal Board of Revenue (FBR).

This applies to those who hold a Pakistan Origin Card (POC) or a National Identity Card for Overseas Pakistanis (NICOP).

In an effort to attract more foreign investment, particularly in the real estate sector, the FBR has simplified the process for overseas Pakistanis. Under the Income Tax Ordinance, 2001, individuals with POC or NICOP are now exempt from higher tax rates under sections 236C and 236K, whether they are listed on the ATL or not.

To make things easier, the FBR has launched a digital system through its IRIS portal. If you’re a non-resident Pakistani looking to claim this exemption, all you need to do is upload your POC or NICOP when generating your Computerized Payment Receipt (CPR).

The system will automatically verify your details and generate a provisional PSID, starting the verification process.

An FBR official explained that the process has been streamlined to ensure it’s fast and hassle-free. “We’ve designed it so the verification is done within one business day,” they said, “minimising any delays.”

The verification itself goes through a couple of steps. First, it’s reviewed by the Chief Commissioner of Inland Revenue (CCIR), before being passed on to the Commissioner of Inland Revenue (CIR) for final approval. Once it’s approved, you’ll get an SMS or email letting you know.

This initiative will be rolled out across all tax offices, including Large, Medium, and Corporate Taxpayers’ Offices (LTOs, MTOs, CTOs), as well as Regional Tax Offices (RTOs).

The goal is to cut down on red tape, making it easier for overseas Pakistanis to invest in Pakistan’s real estate market, and helping to boost foreign investment in line with the government’s broader economic goals.

Read next: Intraday trade: PKR gains 15 paisa against USD