Dear all,
Hope you guys are doing well, and as far i know most of the guys are abroad and having good earning and might be depositing hard earned money in pak account via legal ways.
Since last year i was working in pakistan and did not have enough figures for taxation, but with the help of my finance guy in office i did filed my tax returns. So now from feb, 2014 i am working abroad,and my salary is transferred to pakistani bank.
My question is "are we entitled for any taxation having incoming sources outside pakistan " if so what percentage? Any guideline for filling ? And what other things to consider?
Hope this will help alot of us guys.
Thanks in advance
If your income comes in the ambit of remittance than it is not subject to Tax.
But if origin (Sender ) of your payment is Pakistan than tax is applicable no matter where you work. It happens so when Pakistani companies/branches send someone abroad but salary is given here in Pakistani account.
I needs a clarity as well.
i am working here in Pakistan from home for an Ireland based company they are sending me. My salary in Pak Bank account .. Is that subject to Tax ?
Sorry I am not sure about it. Tax rules are changed every now and than.
Yes tax is applies on it also
If the amount you are receiving is in foreign exchange and payment is made from overseas, it will get classified as remittance and is non-taxable, provided your account is in your personal name and not in the name of any company. This will remain true even if you receive the amount in a PKR account, just make sure you collect the encashment certificate from the Bank, no tax man can touch you then.
Thank you Raza bahi i will ask for encashment certificate from bank.
i am not filling the return just because of this.. Now i will go for filling my returns.
@Akhter Wahab. If this is your only source of income you might actually be entitled to refunds on all the withholding tax deductions you have faced during the past year. Its best to consult a tax advisor first before you file anything with these hounds.