Many Pakistani National living in foreign countries may have a question arising in their mind that how overseas Pakistanis can become filer. You can find your answer here:
Do Overseas Pakistanis Have to File Taxes?
Yes, overseas Pakistanis can become filer and every foreign Pakistani has to pay their taxes based on their income in Pakistan. Like many other countries, taxation in Pakistan depends on the individual’s resident status other than the foreign country in which he/she resides. Previously, if someone was held for 183 days (or more) during the tax year, it was assumed that the tax resident would end July 1 to June 30. However, this period has been reduced to four months following the 2019 financial law. This means that for the year 2019-20, a person must remain in a foreign country for at least eight months to claim tax-free status. In addition, Pakistan residents should be aware that their income is taxed. Meanwhile, after filing tax returns for foreign Pakistanis, it is necessary to file an income tax return on income from Pakistan. Non-resident Pakistanis are not obligated to file a declaration of wealth. Foreign Pakistanis file tax returns if the Pakistan-based income is below the legal income tax threshold or in any case. If they need a valid CNIC, they file tax returns to trigger the filer benefits.
How Can Overseas Pakistanis File Tax Returns in Pakistan?
First of all, foreign Pakistanis must
get NTN (National Tax Number) and it can be obtained by registering on FBR’s
You should first check the FBR filer status.
How to Check Your FBR Filer Status and NTN?
You can check the taxpayer status and
the NTN using the following two methods:
- Type ATL [space] CNIC in a message and send this message to 9966. Please note that do not add any dash, any character or extra space between the numbers because it will not be sent. In a few minutes, you will receive a text message of your taxpayer status. For this purpose, you will need a Pakistani SIM card.
- Visit the official FBR website and go for search taxpayers in the navigation panel that shows up on the website. At the top-down menu, select Active Taxpayer (IT). Then you will be asked to type your CNIC and the verification code received in the text message. After entering the CNIC and the verification code, click on Verify and you will immediately know whether your name exists in the ATL (Active Taxpayer List) or not.
If your name is available on ATL but you don’t know the NTN number, click on the online NTN / STRN Inquiry link and get your NTN number. Meanwhile, if anyone has an NTN and no Iris login credentials, log in details can be obtained by clicking on the ‘E-Enrolment for Registered Person’.
Registration for NTN
Foreign Pakistanis, who have not filed their taxes before, are required to register themself on FBR by visiting FBR and click on the registration number. They should fill in the required details to enter the iris system.
The person who is applying for NTN should verify himself with the code sent via mobile phone or email. The person is required to verify himself as soon as possible as verification code works for a few minutes after sent to you.
After completing the ‘Registration Form’, submit it to get your NTN number.
For more information, check out our comprehensive blog ‘How to become Filer’.
Filing Tax Return for Overseas Pakistanis
First of all, log in to IRIS and then click the ‘Declaration’ menu available above. Follow the procedure described and be sure while stating your income from foreign sources in the ‘Other Sources’ section of the website.
Moreover, depending upon the months
you spent in Pakistan during the financial year. Depending, choose your status
as ‘resident’ or ‘non-resident’ in the ‘Active’ section and enter the required
information in the input field.