As Pakistan continues to strengthen its ties with its diaspora, the Federal Board of Revenue (FBR) has announced an exciting new policy that offers significant tax exemptions for overseas Pakistanis purchasing real estate. This move is not only a game-changer for the real estate market but also a lucrative opportunity for non-resident Pakistanis to invest in their homeland. Here’s what you need to know.
What Is the Tax Exemption About?
Under the new policy, overseas Pakistanis holding a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP) are exempted from higher tax rates associated with Sections 236C and 236K of the Income Tax Ordinance, 2001. These sections previously imposed additional taxes on individuals not listed on the Active Taxpayers List (ATL). Now, even if you are not on the ATL, you can still enjoy reduced tax obligations when buying or selling property in Pakistan.
How Does It Work?
The FBR has implemented a streamlined digital verification process to ensure transparency and efficiency. Here’s the step-by-step procedure:
- Digital Verification via IRIS Platform:
- Overseas Pakistanis need to upload their POC or NICOP while generating the Computerized Payment Receipt (CPR).
- Provisional Payment Slip ID (PSID):
- Upon uploading the required documents, the system issues a provisional PSID, initiating the verification process.
- Verification Process:
- The application undergoes a two-layer review process—first by the Chief Commissioners of Inland Revenue and then by the Commissioners of Inland Revenue.
- Notification of Approval:
- Once the verification is complete, applicants are notified via SMS and email, typically within one business day.
- Advance Tax Payment:
- While the exemption covers higher tax rates, overseas Pakistanis are still required to pay a standard 1% advance tax under Section 236K at the time of property purchase.
Why Is This a Big Deal?
This tax exemption significantly reduces the financial burden on overseas Pakistanis, making real estate investments more attractive. By eliminating the higher tax rates for non-ATL individuals, the government aims to:
- Encourage Foreign Investment: Simplified processes and reduced costs create an investor-friendly environment.
- Boost Real Estate Growth: Increased participation by overseas Pakistanis can drive up demand and positively impact the sector.
- Strengthen Diaspora Ties: These measures reinforce Pakistan’s commitment to its overseas citizens, acknowledging their economic contributions.
Trusted Real Estate Guidance with OREM
At OREM (Online Real Estate Marketing), we specialize in providing reliable consultancy services tailored to the unique needs of overseas Pakistanis. With over eight years of expertise, particularly in OPF Valley Islamabad, we are here to guide you every step of the way—from understanding tax exemptions to finding your dream property.
Our mission is to ensure that your investment journey is smooth, transparent, and profitable. Whether you are looking to buy your first property or expand your portfolio, our team will provide expert advice to help you make the best decisions.
Contact Us for Tax Consulting
To ensure you fully understand and benefit from these tax exemptions, consult with a trusted tax consultant. Contact us via WhatsApp at Click Here to Chat or reach out directly at +923127248673.
This groundbreaking tax exemption policy is a golden opportunity for overseas Pakistanis to invest in Pakistan’s thriving real estate market. With reduced taxes, streamlined procedures, and trusted guidance from OREM, there has never been a better time to invest in your homeland.
Reach out to us today and let’s make your real estate dreams a reality!
