[Pakistan] Government will lower tax for expats

Pakistan’s federal government may soon put into effect another presidential ordinance granting income tax concessions to local and overseas Pakistanis on investments in Naya Pakistan Certificates and the real estate sector through recently launched digital accounts, Pakistan Today reports.

The income tax rate may be reduced from 15 per cent to 10 per cent for resident Pakistanis investing in Naya Pakistan Certificates through the digital accounts, while those who have declared assets abroad with FBR can also invest in USD-denominated certificates.

Reporting by the Express Tribune - quoting sources in the State Bank of Pakistan (SBP) - said the proposal is intended to attract dollars from expatriates as well as resident Pakistanis who have offshore assets, supplementing foreign exchange reserves.

Additionally, the government will incorporate Islamic Naya Pakistan Certificates Company under the administrative control of the central bank.

According to another proposal, the government was also considering exempting 1 per cent income tax on the purchase of property by overseas Pakistanis through digital accounts. On the sale of these immovable assets by Pakistani immigrants, the proposed rate could be 1 per cent to 2 per cent, a drop from the existing 2 per cent to 4 per cent.

Similarly, the government considered exempting capital gains tax (CGT) on profit made on the sale of property bought through digital accounts. The current CGT rate ranges from 2.5 per cent to 15 per cent.

Another proposal suggests that gains made by non-filers by investing in the Pakistan Stock Exchange through digital accounts should also be charged at 15 per cent rate, as opposed to the current 30 per cent rate.

 Source: Pakistan Today

Pakistan’s federal government may soon put into effect another presidential ordinance granting income tax concessions to local and overseas Pakistanis on investments in Naya Pakistan Certificates and the real estate sector through recently launched digital accounts, Pakistan Today reports.

The income tax rate may be reduced from 15 per cent to 10 per cent for resident Pakistanis investing in Naya Pakistan Certificates through the digital accounts, while those who have declared assets abroad with FBR can also invest in USD-denominated certificates.

Reporting by the Express Tribune - quoting sources in the State Bank of Pakistan (SBP) - said the proposal is intended to attract dollars from expatriates as well as resident Pakistanis who have offshore assets, supplementing foreign exchange reserves.

Additionally, the government will incorporate Islamic Naya Pakistan Certificates Company under the administrative control of the central bank.

According to another proposal, the government was also considering exempting 1 per cent income tax on the purchase of property by overseas Pakistanis through digital accounts. On the sale of these immovable assets by Pakistani immigrants, the proposed rate could be 1 per cent to 2 per cent, a drop from the existing 2 per cent to 4 per cent.

Similarly, the government considered exempting capital gains tax (CGT) on profit made on the sale of property bought through digital accounts. The current CGT rate ranges from 2.5 per cent to 15 per cent.

Another proposal suggests that gains made by non-filers by investing in the Pakistan Stock Exchange through digital accounts should also be charged at 15 per cent rate, as opposed to the current 30 per cent rate.

 Source: Pakistan Today