Islamabad: The Federal Board of Revenue (FBR) has clarified that overseas Pakistanis holding either a Pakistan Origin Card (POC) or a National Identity Card for Overseas Pakistanis (NICOP), and who are classified as non-residents, can avail the filer tax rate on the purchase and sale of immovable property—even if they are technically non-filers.
According to the FBR, two conditions must be met for this concession to apply:
The individual must possess a valid POC or NICOP.
They must be classified as a non-resident, which means they have spent less than 183 days in Pakistan during a financial year.
Under sections 236C (sale) and 236K (purchase) of the Income Tax Ordinance, the advance income tax rates are typically higher for non-filers. However, overseas Pakistanis meeting the above criteria will be treated as filers and thus subject to significantly lower tax rates.
The current applicable tax rates for property purchasers under Section 236K are:
Up to PKR 50 million: 1.5% for filers, 4.5% for late filers, 10.5% for non-filers
PKR 50–100 million: 2% for filers, 5.5% for late filers, 14.5% for non-filers
Above PKR 100 million: 2.5% for filers, 6.5% for late filers, 18.5% for non-filers
For sellers under Section 236C:
Up to PKR 50 million: 4.5% for filers, 7.5% for late filers, 11.5% for non-filers
PKR 50–100 million: 5% for filers, 8.5% for late filers, 11.5% for non-filers
Above PKR 100 million: 5.5% for filers, 9.5% for late filers, 11.5% for non-filers
To benefit from the reduced filer rates, eligible overseas Pakistanis must follow a dedicated process on the FBR’s portal. The relevant registrar or housing authority initiating the property transaction must select the “Overseas Pakistanis” option on the FBR web portal to generate a Payment Slip ID (PSID).
The applicant is then required to:
Declare their POC or NICOP number (the system will auto-fetch their details)
Upload a scanned copy of the document
Declare their non-resident status and provide supporting documents
Once submitted, the digital PSID is routed to the concerned tax commissioner via the IRIS system. Upon successful verification, the commissioner will approve the request and notify the applicant via email and SMS. After approval, the individual will be allowed to pay advance tax at filer rates, despite not filing a tax return in Pakistan.
The FBR’s clarification aims to remove confusion among overseas Pakistanis while encouraging documentation of property transactions through verified and traceable processes. This also aligns with bro
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
