Here’s what FBR said in their ‘clarification’ regarding Naya Pakistan certificates
The Naya Pakistan Certificate is a new instrument launched by the Government/ State Bank of Pakistan.
- Under the Naya Pakistan Certificate issued by the FBR, non-resident Pakistanis are not required to file an income tax return solely for the declaration of the tax deduction on profit on debt.
- The Naya Pakistan Certificate qualifies as a debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001.
- Only non-residents, people who maintain bank accounts abroad or own foreign currency accounts in Pakistan, can purchase the Naya Pakistan Certificates.
Recently, the Federal Board of Revenue (FBR) issued a legal clarification which states:
Non-resident Pakistanis are not required to file an income tax return solely for the declaration of the tax deduction on profit on debt on the Naya Pakistan Certificate.
The Naya Pakistan Certificate is a new instrument launched by the Government/ State Bank of Pakistan. This certificate qualifies as a debt instrument in terms of Clause (5AA) of Part-II of the Second Schedule of the Income Tax Ordinance, 2001.
According to the modified legal clarification, profit on the debt of the Naya Pakistan Certificate is subject to tax @ 10%, which is the final tax.
FBR further clarified the matter by saying:
The non-residents are not required to file a tax return solely for the declaration of the tax deduction on profit on debt, as the aforesaid concessionary tax regime applies to non-residents only.
It should be noted that only non-resident individuals can purchase the Naya Pakistan Certificate. These non-residents include people who maintain bank accounts abroad or own foreign currency accounts in Pakistan. The clarification issued by the FBR further stated:
All such individuals are not required to file returns of income.
What are your thoughts on this? Please share with us in the comment section below.
Everyone knows these tactics? Pak Govt doesnt allows the exit of money once money comes in Pakistan. So all this just doesnt matter. Also after a few months govt will ask for source of money and people will also have to pay tax.
Dont trust FBR it changes its policy every day like IK. Only to catch people. There is a ditch behind every FBR policy.
The problem is that you cannot make a deposit to a foreign currency account in Pakistan if you are not a tax filer. So this regulation that non-residents do not have to be tax filers is wrong if you want to keep a foreign currency account in Pakistan.