FBR explains conditions for expats to be deemed 'filers'

ISLAMABAD: The FBR has explained that the tax machinery will charge advance tax on the purchase and sale of immovable property for overseas Pakistanis as a filer subject to certain conditions.

There will be two conditions such as they are holding a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP), and they are non-resident in Pakistan, meaning their stay in a financial year in Pakistan is less than 183 days.

For overseas Pakistanis, the rate of advance income tax on the purchase and sale of immovable properties under sections 236C and 236K shall be “filer rate” even if they are “non-filer” subject to the conditions they are holding POC or NICOP, and they are non-resident in Pakistan meaning their stay in a financial year in Pakistan is less than 183 days.

What are the ‘filer and non-filer rates’ under sections 236C and 236K? The advance income tax under sections 236C and 236K at the time of transfer of immovable properties differ depending on the fair market value of the immovable properties, as well as the status of a person who has filed his income tax return and a person who filed late or did not file at all. Those advance rates after the amendments made through the Finance Act, 2025.

For purchasers, if the fair market value does not exceed Rs50 million, there will be rate of 1.5pc for filers, 4.5pc for late filer and 10.5pc for non-filers. If the fair market value exceeds Rs50 million but does not exceed Rs100, the rate for filer will be 2pc, 5.5pc for a late filer, and 14.5pc for non-filer.

If the fair market value exceeds Rs100 million, there will be a tax rate of 2.5pc for filer, 6.5pc for late filers and 18.5pc for non-filers. For seller of property under 236C, if the gross amount of the consideration received does not exceed Rs50 million, there will be tax rate of 4.5pc for filer, 7.5pc for late filer and 11.5pc for non-filer.

If the gross amount of the consideration received exceeds Rs50 million but does not exceed Rs100 million, there will be tax rate of 5pc for filer, 8.5pc for late filer and 11.5pc for non-filers.

If the gross amount of the consideration received exceeds Rs100 million, there will be tax rate of 5.5pc for filer, 9.5pc for late filer and 11.5pc for non-filer. The Overseas Pakistanis who are holding POC or NICOP can avail “filer rate” under sections 236C and 236K by following procedure:

The authority concerned, registrar or a housing Society, who is responsible for registering, transferring or recording the immovable property, shall click on the ‘Overseas Pakistanis’ link on FBR’s web portal to create a PSID (payment slip identity).

The system shall redirect the person to a form to: Declare his POC or NICOP number and the system will fetch automatically his details such as name and address;

Upload scanned copy of his POC or NICOP; and His status as ‘resident’ or ‘non-resident’ and can upload documents in support thereof.

They system shall digitally make the PSID available in the IRIS digital inbox of the commissioner concerned for approval; The commissioner shall verify the documents attached, approve after verification and inform the person who created PSID by email and SMS; The system shall allow the person to make payment of advance income tax at “filer rate” despite being a “non-filer”.