Published by Qadri Law Chambers
🌍 Living Abroad? Here’s What You Need to Know About Taxes in Pakistan
Living overseas—whether in the UAE, UK, or USA—offers countless opportunities. But managing your tax responsibilities in Pakistan can be overwhelming. This guide simplifies the essentials of tax compliance for overseas Pakistanis, including exemptions, filing requirements, and smart savings strategies for the tax year 2025–2026.
👤 Who Qualifies as an Overseas Pakistani for Tax Purposes?
If you’ve spent 183 days or more outside Pakistan during a tax year (July 1 to June 30), you are considered a non-resident under Pakistani tax law. This status brings both benefits and responsibilities.
🔗 Related: Federal Budget 2025–26: Key Reforms Explained
❓ Do You Need to File Taxes in Pakistan?
Here’s the breakdown:
- 💼 If your only income is foreign: No need to file a return in Pakistan.
- 🏠 If you have local income (e.g., rent, capital gains): You must file with the Federal Board of Revenue (FBR).
📅 Deadline: Returns are due by September 30 each year.
For 2025–26, always check the FBR Official Portal for updates and late filing penalties.
💸 Tax Rates for Non-Resident Pakistanis
As a non-resident, only Pakistan-sourced income is taxed. Here are some common tax rates:
| Income Type | Tax Rate |
|---|---|
| Rental Income | 15% |
| Dividends | 10%–15% |
| Interest | 10%–15% |
| Capital Gains (on Property Sales) | Up to 10% based on holding period |
💡 Tip: Knowing these rates helps avoid unexpected deductions.
✅ Tax Exemptions for Overseas Pakistanis
The good news? Foreign income (salary, foreign business profits, etc.) is not taxable in Pakistan. But:
- Pakistani-sourced income (like rent or dividends) is taxable.
- Pakistan has Double Taxation Agreements (DTAs) with 60+ countries, including:
- 🇦🇪 UAE
- 🇬🇧 UK
- 🇺🇸 USA
📌 These agreements help you avoid paying tax twice on the same income.
💼 Smart Tax Planning Tips for Overseas Pakistanis
Here’s how you can save legally and plan wisely:
- 📝 Leverage Tax Treaties
Use DTAs to reduce or eliminate double taxation. - 📈 Invest Tax-Free
Income from foreign stocks, crypto, or property abroad is not taxed in Pakistan. - 💳 Remit via Official Channels
Use bank transfers or Remittance services to enjoy tax-free remittances. - 🔍 Stay Updated with Laws
Visit FBR or Qadri Law Chambers Blog for regular updates.
🛡 Why Tax Compliance Still Matters
Even if you’re exempt from filing, registering with FBR can:
- Help with property sales
- Allow you to claim refunds
- Make banking & investments easier in Pakistan
🛑 Avoid future legal issues and protect your wealth by staying compliant.
📣 Need Help Filing as an Overseas Pakistani?
At Qadri Law Chambers, we offer:
- Personalized legal tax advice
- Guidance for FBR registration, filing returns, and using DTAs
- Solutions for property tax and capital gains for non-resident Pakistanis
📞 Contact Us Now or email us at
📧 qadri.law.chambers@hotmail.com
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