The Federal Board of Revenue (FBR) has introduced a significant relief measure for overseas Pakistanis, streamlining the process for availing tax exemptions on property purchases in Pakistan. This initiative aims to simplify procedures and eliminate the need for their physical presence during transactions.
Following the repeal of Sections 236 and 236-K, overseas Pakistanis can now independently generate a Payment Slip Identification (PSID) code online. This code must then be sent via email to the relevant Chief Commissioner of Inland Revenue. The commissioner will verify the applicant’s non-resident status using the National Identity Card for Overseas Pakistanis (NICOP) and, upon approval, grant the tax exemption. This process opens the door for non-resident Pakistanis to claim exemptions worth millions of rupees when purchasing property.
In line with this reform, the Federal Tax Ombudsman (FTO), Dr. Asif Mehmood Jah, had previously directed the FBR to expedite tax refunds for overseas Pakistanis. The FBR has also instructed all Chief Commissioners of Inland Revenue to process cases for tax exemptions within a single day to ensure efficiency and transparency.
The FBR has issued official correspondence to its Chief Commissioners, urging strict adherence to these new measures to facilitate non-resident Pakistanis.
This development is seen as a step towards enhancing the convenience of overseas Pakistanis, encouraging investment in Pakistan’s property sector while recognising their contribution to the national economy.
