At: Residence
Resident or non-resident
You do not know whether you are resident or non-resident for this tax year.
What we do
A residency test for the tax year under section 82, based on your travel dates.
Cross-Border Tax
Cross-border tax work starts with one question: are you resident in Pakistan for the tax year? The answer decides what Pakistan taxes, which returns you file and whether a double tax treaty helps. We work through that question with you, then handle the filings and withholding that follow.
Where cross-border tax comes into play across the tax year
The points where this service comes into play are numbered.
- Stage 1ResidenceYou moved to or from Pakistan during the year and are unsure which days count.1
- Stage 2Income in PakistanYou live abroad and earn rent, profit or a salary in Pakistan.
- Stage 3Tax on both sidesThe same income taxed in Pakistan and abroad.2
- Stage 4PropertyYou are selling or buying property in Pakistan while living overseas.3
- Stage 5Payments abroadYour Pakistani company pays a foreign supplier, consultant or parent company.4
- Stage 6The returnThe return, the wealth statement and the foreign income and assets statement, filed with FBR.
Numbered points are explained below.
The four points, explained
At: Tax on both sides
Tax deducted twice
Tax was deducted in Pakistan and again abroad on the same income.
What we do
A reading of the relevant double tax agreement and how it applies to your income.
At: Property
The non-filer rate
Your bank or buyer is applying the non-filer rate to you.
What we do
Support with the filer-rate route open to overseas Pakistanis on property sales and purchases.
At: Payments abroad
Paying a non-resident
Your company paid a non-resident without deducting tax and has received a notice.
What we do
Withholding advice for payments your business makes to non-residents.
What the engagement includes
Request a proposal- Residence
Whether you are resident for the tax year under section 82, from your travel dates.
- Tax treaties
How the relevant double tax agreement applies to your income.
- Your Pakistan filings
Your return and, where the law requires them, the wealth statement and foreign income and assets statement.
- Payments to non-residents
Withholding advice for payments your business makes abroad.
- Property as an overseas Pakistani
The filer-rate route on property sales and purchases.
- Something not listed?
Ask us, and we will tell you plainly whether it is work we can take on.
How it runs
Facts first
You send your travel dates, income sources and any tax already deducted. We confirm your residency position.
Treaty and withholding review
We check whether a double tax agreement applies and what relief it gives, and how any withholding has been handled.
Filing
We prepare the return and statements in IRIS for your approval, then file them.
Follow-up
We explain what would change if your travel pattern or income changes next year.
How many days in Pakistan make me resident?
Under section 82, the general rule is that an individual is resident if present in Pakistan for 183 days or more in the tax year. Other tests apply in some cases, including for some Pakistani citizens and for government employees posted abroad. We work out your status from your travel dates.
Do I need to file a wealth statement if I live abroad?
A non-resident individual is generally not required to file a wealth statement, although the Commissioner can ask for one by notice. We check your position before filing.
Can I avoid the higher rate on a property sale if I am overseas?
FBR allows overseas Pakistanis to be charged the filer rate on property purchases and sales under sections 236C and 236K, subject to conditions. We check whether you meet them.
Does Pakistan have a tax treaty with the country I live in?
Pakistan has double taxation agreements with many countries. FBR publishes the list. We read the treaty that applies to you and tell you what it changes.