FBR Sets Filer Tax Rate for Overseas Property Deals

Islamabad, July 08, 2025, 04:04 PM PKT — The Federal Board of Revenue (FBR) has issued a critical clarification, mandating that overseas Pakistanis pay advance tax on property purchases and sales at the “filer rate”, provided they hold a Pakistan Origin Card (POC) or National Identity Card for Overseas Pakistanis (NICOP) and are non-residents (staying less than 183 days in Pakistan per financial year), per a recent news report. Under sections 236C and 236K, tax rates vary by property market value and filer status, with purchases up to Rs50 million taxed at 1.5% (filers), 4.5% (late filers), or 10.5% (non-filers), escalating to 18.5% for non-filers on properties over Rs100 million. Sales up to Rs50 million incur 4.5% (filers), 7.5% (late filers), or 11.5% (non-filers), rising to 5.5% (filers) and 9.5% (late filers) above Rs100 million.

To secure the filer rate, overseas Pakistanis must register their POC/NICOP number on the FBR web portal, generating a Payment Slip Identity (PSID) for document verification and approval by the concerned authority, streamlining tax compliance. Web context highlights tax collection efforts (e.g., 5% overseas tax push), while posts found on X show relief—some welcome fairness, others question process complexity. Critically, the narrative of “tax fairness” may mask verification challenges—web data points to system lags, and X sentiment suggests distrust in smooth execution, hinting at potential hurdles.