The Federal Board of Income (FBR) has issued a authorized clarification that the non-resident Pakistanis usually are not required to file earnings tax return solely for the declaration of tax deduction on revenue on debt on the Naya Pakistan Certificates.
Based on a modified clarification issued by FBR, the Naya Pakistan Certificates, a brand new instrument launched by the Authorities/ State Financial institution of Pakistan, qualifies as debt instrument by way of Clause (5AA) of Half-II of the Second Schedule of the Revenue Tax Ordinance, 2001.
Subsequently, revenue on debt on the Naya Pakistan Certificates is topic to tax @ 10% which is remaining tax.
Furthermore, such non-residents usually are not required to file tax return solely for the declaration of tax deduction on revenue on debt. It might be added that the aforesaid concessionary tax regime is relevant to non-residents solely, FBR added.
The sooner clarification issued by the FBR said that solely non-resident people should purchase Naya Pakistan Certificates who keep checking account overseas or international forex account maintained in Pakistan. It is usually clarified that such people usually are not required to file returns of earnings.
Now this clarification has been modified by the FBR.