FBR Announce Tax Relief for Overseas Pakistanis on Property Sale

According to the Federal Board of Revenue (FBR), section 7E of the Income Tax Ordinance 2001 does not require non-residents, including non-resident Pakistanis, to pay tax on movable property.

Through the release of Circular No. 3 of 2023, which was announced on Tuesday, the FBR has loosened several of the procedural requirements of Section 7E.

In some circumstances, as stated in the aforementioned circular, the FBR has also relaxed the requirement of obtaining exemption certificates from the Inland Revenue Commissioners.

The explanatory Circular, which is being released to facilitate the sale of property or transfer transactions, will be in effect for a transitional time up until the creation of an automated system for this purpose, according to the FBR.

The FBR has further clarified that the circumstances listed in Circular No. 1 of 2023-24 do not fall under the requirements for requesting a certificate from the Commissioner.

However, the immovable property transferring authority will keep an accurate record of the seller/transferor information as well as pertinent documentation with regard to properties under sale or transfer covered under these stated scenarios.

Starting from the date of the issuing of this circular, the transferring authority will share the aforementioned data record on a weekly basis with the appropriate Chief Commissioner IR of the Regional Tax Office having jurisdiction over the seller/transfer.

According to the circular, the section 7E of the Ordinance does not apply to real estate used for land development and construction owned by local authorities, development authorities, builders, and developers, provided that these individuals are registered with the Directorate General of Designated Non-Financial Business and Professions (DNFBP).

On a property in the first year of acquisition for which the buyer has duly paid tax under section 236K, the provisions of section 7E do not apply. A Computerised Payment Receipt (CPR) with a specific CPR number, the seller’s or transferor’s name, CNIC number, and information indicating the tax paid under Section 236K, date of payment, and tax year must be provided to the transferring authority in such a scenario.

A person who dies while serving in the Pakistan Armed Forces or the Federal and Provincial Government, a person who sustains a war injury while serving in the Pakistan armed forces or the Federal or Provincial Government, an ex-serviceman and serving members of the armed forces, or an ex-employee, are not subject to the provisions of section 7E of the Income Tax Ordinance, 2001.

Therefore, the requirement of method and manner of providing evidence to the transferring authority announced under Circular No. I of 2023 will not apply to such categories of persons if a seller or transferor falls under one of the aforementioned categories of persons.

The application of section 7E of the Income Tax Ordinance, 2001 (the Ordinance) for the purpose of selling or transferring real property as provided for in sub-section (2A) of section 236C of the Ordinance has drawn a lot of comments from the public. In order to address any implementation-related issues with the newly added sub-section (2A), as well as a partial revision and addendum to the Circular No. 1 of 2023–24’s instructions.

In addition, FBR made it clear that the contents of the Circular will not be applicable in cases that fall under the purview of the Lahore High Court, with reference to the judgement in WP no. 52559 of 2022, dated 06-04-2023, unless and until the said judgement is reversed, suspended, or vacated in an appeal to the Inter Court of Pakistan or by the Supreme Court of Pakistan.

You can also invest in other famous and most in demand housing societies, such as , Blue World City, Rudn Enclave, 7 Wonders City Peshawar, Taj Residencia, Kingdom Valley, New Metro City Gujar Khan, Forest Town Rawalpindi, University Town Rawalpindi, ICHS Town, Park View City Islamabad, Multi Gardens B17 Islamabad and Nova City Islamabad.

Al Sadat Marketing please contact 0331 1110005 or visit https://alsadatmarketing.com/

Few more real estate housing schemes which are trending now a days in Islamabad by including: Faisal Town Phase 2, Prism Town Gujar Khan, New City Paradise, Eighteen Islamabad, 7 Wonders City Islamabad, Capital Smart City, Silver City Islamabad, The Life Residencia, Faisal Town Islamabad, Islamabad Golf City, Islamabad Model Town and Marble Arch Enclave.

Al Sadat Marketing is an emerging Real Estate Agency headquartered in Islamabad, Pakistan. With over 10+ Years of experience, Al Sadat Marketing is providing its services and dealing all trending housing societies projects in different cities of Pakistan. Islamabad Projects, Rawalpindi Projects, Gujar Khan Projects, Burhan Projects, and Peshawar Projects etc.

Book Your Plot Now: +92 331 111 0005

Tags :