The Federal Board of Revenue (FBR) has clarified that overseas Pakistanis can still benefit from the lower filer rate of advance income tax on purchasing and selling immovable property, even if they are formally listed as non-filers.
In its latest FAQs, the FBR explained that under Sections 236C and 236K of the Income Tax Ordinance, this relief applies if two conditions are met: the individual must hold a Pakistan Origin Card (POC) or a National Identity Card for Overseas Pakistanis (NICOP), and must also qualify as a non-resident by spending fewer than 183 days in Pakistan during a financial year.
Typically, advance income tax rates on property transactions differ for filers and non-filers, and are calculated based on the fair market value of the property. This exemption helps overseas Pakistanis avoid higher non-filer tax rates under defined circumstances.
To claim this benefit, overseas Pakistanis need to follow a process through the FBR’s online portal. The authority responsible for property registration, such as a Registrar, housing society, or similar entity, must first click the “Overseas Pakistanis” option on the FBR portal to create a Payment Slip ID (PSID).
The applicant must then enter their POC or NICOP number, after which the system will automatically retrieve their details. They are also required to upload a scanned copy of their POC/NICOP and provide evidence confirming non-resident status.
The PSID is then forwarded digitally to the relevant Commissioner via the FBR’s IRIS system for verification. Once the documents are approved, the applicant receives confirmation by email and SMS, enabling payment of advance tax at the filer rate despite officially being a non-filer.
