Overseas Pakistanis who want to become tax filers in Pakistan can do so by filing their Income Tax
Return. A Non-Resident person, who is generally a citizen of Pakistan, does not have to pay any
Income Tax to the Pakistani government, but he can still file an Income Tax Return to get the status
of a Tax Filer in Pakistan. Foreign Pakistani or non-resident Pakistanis who make taxable income in
Pakistan are required to pay Income Tax on their income generated in Pakistan.
Individuals in Pakistan are taxed based on their resident status, rather than the foreign country in
which they reside. This means that there are several benefits to being a tax filer in Pakistan. For
instance, if an overseas Pakistani becomes a Tax Filer, they can enjoy lower taxes on over 100
instances, including banking transactions, vehicle registration, and the transfer of immovable
There are many benefits for non-resident Pakistanis who file taxes, especially if they're looking to
invest in the real estate sector, stock exchange, mutual funds, saving schemes or prize bonds.
One of the most important things for overseas Pakistanis to know is that if they're planning to buy
any movable or immovable assets in Pakistan (like a vehicle or a house) using solely foreign income,
they can save a lot of money in the form of withholding taxes simply by declaring themselves a filer.
This can also help in declaring the entire assets acquired are from a foreign source and are not
taxable in Pakistan. In this way, overseas Pakistanis can also avoid the hassle of an audit by Tax
Authorities in Pakistan and are thus fully secured as per Pakistani laws.
An individual is considered to be a non-resident for tax purposes if they live outside of Pakistan for
120 days or more in a single tax year, and if they have been living outside of Pakistan for 365 days or
more cumulatively over the last 4 years. This means that, for the 2019-20 tax year, an individual
must have been living in a foreign country for at least 8 months to claim the status of overseas
Pakistani or non-resident.
In order to file Tax Return, foreign Pakistanis must register with FBR and get their NTN (National Tax
Number). This can be done by getting registered online at IRIS portal.
If you're a Pakistani citizen living abroad and have never filed your taxes before, you'll need to
register yourself on the FBR website first. Before starting the registration process, though, you
should check to see if you're already registered with the FBR. You can do this by verifying your NTN
on the FBR website. If there's no record of you, go to the IRIS portal and fill in your details by clicking
on “registration of un-registered person”, then following the prompts to fill in the required
You will receive verification pins via email and SMS. It's important to verify the pins right away as
you will only have a limited time before the session expires and you'll have to start the process all
The Pakistani tax year is from 1st July to 30th June of the next year. An Income Tax Return (ITR) for a
tax year must be filed by the 30th September of the next tax year. This means that for the tax year
2019, the ITR for 2019 must be filed by 30th September 2020. Tax Returns can be filed by logging in
to the IRIS portal. After you have logged in, click on ‘Declaration’ showing on top of the screen. Open
form 114(1) (Return of Income filed voluntarily by Non-Resident Pakistan-origin person having no
Pakistan-source income) in case if you do not have any source of income from Pakistan but if you
have a source of income from Pakistan or in other words you are making taxable income in Pakistan
then you have to file normal Income Tax Return form of section 114.
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