As per Lawkidunya, Pakistan’s income tax laws for non-residents are governed by the Income Tax Ordinance, 2001. A non-resident individual is taxed only on Pakistan-source income, including income received or deemed to be received in Pakistan or deemed to accrue or arise in Pakistan.
Taxable Income For Non-Residents in Pakistan
Taxable income For non-residents includes:
– Salary received or receivable from any employment exercised in Pakistan, wherever paid
– Dividend paid by a Resident Company
– Profit on debt paid by a Resident Person
– Property or rental income from the lease of immovable property in Pakistan
– Pension or annuity paid or payable by a Resident or permanent establishment of a Non-Resident
Withholding Tax Requirements For Non-Residents in Pakistan
Withholding tax is applicable on payments made to non-residents, including salaries, dividends, and interest. The tax rates vary depending on the type of income and the tax treaty between Pakistan and the non-resident’s country of residence.
Tax Treaties For Non-Residents in Pakistan
Pakistan has signed tax treaties with several countries to avoid double taxation and fiscal evasion. These treaties may provide relief to non-residents on their Pakistan-source income.
Filing Requirements For Non-Residents in Pakistan
Non-residents are required to file their tax returns electronically through the Federal Board of Revenue (FBR) portal. The tax year runs from July 1 to June 30, and tax returns must be filed by the due date.
