Published: July 5, 2025
The Federal Board of Revenue (FBR) has officially clarified that overseas Pakistanis can avail the lower “filer” tax rates on the purchase and sale of immovable property—even if they are non-filers—provided they meet specific eligibility criteria.
In a newly released set of Frequently Asked Questions (FAQs), the FBR addressed confusion around applicable tax rates for non-resident Pakistanis conducting property transactions in the country. The move is expected to bring relief to overseas Pakistanis and simplify compliance with real estate tax obligations.
Eligibility for Filer Rate
According to the FBR, individuals who:
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Hold a valid Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP), and
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Are classified as non-resident under Pakistani tax law (i.e., they spend fewer than 183 days in Pakistan during a financial year),
will be eligible to pay the lower “filer” rate of advance income tax on real estate transactions—even if they are not listed on the Active Taxpayers List (ATL).
This applies to taxes levied under:
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Section 236C (advance tax on sale of property)
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Section 236K (advance tax on purchase of property)
These taxes are normally charged at higher rates for non-filers.
How to Avail Filer Rate as an Overseas Pakistani
To benefit from this exemption, overseas Pakistanis must complete the following steps through the FBR online portal:
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Visit the “Overseas Pakistanis” section on the FBR portal.
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Register and generate a Payment Slip ID (PSID) specific to the property transaction.
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Upload required supporting documents (POC or NICOP, proof of non-residency, etc.).
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Submit the application to the relevant Commissioner Inland Revenue for approval.
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Once verified and approved, the portal system will enable payment at filer rates.
The FBR emphasized that only approved users will be able to pay tax at the reduced rate. All others will be automatically assessed under the standard non-filer regime.
Purpose of the Clarification
This clarification is intended to remove ambiguity and facilitate non-resident Pakistanis investing in real estate. It ensures that those with a verifiable overseas status are not penalized by higher non-filer tax rates, thereby encouraging legal compliance and property market participation from the overseas diaspora.
