The Federal Board of Revenue (FBR) has introduced new tax regulations and implementation procedures for overseas property purchases by non-resident Pakistanis. Here’s a summary:
Tax Rates and Refunds:
- Non-resident Pakistanis (NRTs) will now pay a flat tax rate of 3% for property purchases.
- Previously, NRTs could avoid tax if they filed their tax returns within the prescribed deadlines. However, this exemption has been removed.
Non-Resident Status Validation:
- The FBR will now determine the non-resident status of individuals, rather than Transferring Authorities (e.g., Deputy Commissioners).
- To obtain non-resident status, NRTs must generate a provisional PS ID through the FBR’s IRIS software.
- After the validation process, a confirmed PS ID will be issued, indicating approval for the 3% tax rate.
Property Transfer Procedure:
- A new procedure has been implemented for property transfers involving NRTs.
- NRTs must obtain an authority letter from the overseas property owner, authorizing the transfer of ownership on their behalf.
- The authority letter must be sent by email or WhatsApp to the relevant authority.
Form 7e:
- NRTs continue to be exempt from Form 7e requirements.
Conclusion
These new regulations aim to streamline the process of overseas property purchases for NRTs while ensuring compliance with tax laws. Individuals must understand these changes and follow the updated procedures to avoid penalties or delays during property transactions.
by Azan Maqsood
Join The Discussion
You must be logged in to post a comment.