To encourage foreign remittances, the advance tax due under Section 236K of the Income Tax Ordinance 2001 on purchasing immovable properties in Pakistan should be waived for Pakistanis abroad, including non-residents.
According to Muhammad Ahsan Malik, the Income Tax Ordinance of 2001’s section 236C (advance tax on sale/transfer) should be the only tax that applies to foreign Pakistanis.
Following the Finance Act 2022, the FBR should disclose information regarding tax collections from the real estate industry during the first quarter (2022-23).
The advance tax rate on sales, transfers and real estate purchases was raised from 1% to 2% in the most recent budget.
The provisions of section 100BA and rule 1 of the tenth schedule will not apply to non-resident Pakistanis who possess a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) as long as those transactions fall under the purview of sections 236C and 236K of the Ordinance, which governs the purchase or sale of real estate.