ISLAMABAD; Oct 25, 2018: The government has removed the condition of being a tax-filer for overseas Pakistanis to purchase properties in the country and individuals acquiring properties through inheritance.
The decision was taken to alleviate hardships faced by non-resident individuals investing in the real estate sector. The condition which was imposed by previous government increased challenges for overseas Pakistanis.
The decision issued via a circular on Wednesday reveals that restriction on purchase/transfer of property having value exceeding Rs5 million by non-filers will also not apply to legal heirs acquiring property through inheritance.
In addition to that, condition of being a filer will not apply on overseas Pakistanis who are able to produce a certificate from a scheduled bank verifying receipt of foreign exchange remitted from outside Pakistan through normal banking channels during a period of 60 days prior to the date of registering, recording or attesting transfer of immovable property valuing Rs5m or more.
Nearly 9 million Pakistanis are abroad, remitting nearly $19 billion home every year (based on 5-yr average) and participate significantly in the country’s real estate sector considered most profitable sub-sector of the economy.
The government has also allowed taxpayers to revise tax return voluntarily by December 31 2018 along with the payment of higher tax which is 25pc higher than tax paid with return on the basis of taxable income. In case no tax is payable, the taxpayer will have to pay 2pc of the turnover.