Details for foreign salary/remittance entry as non resident required?

Question

Dear Sir/Madam,

Assalamualaikum,

I am working abroad in an offshore oil and gas company on rotational basis 28 days work and 28 days leave(back to home) and so spend more than 183 days out of Pakistan. I have RDA USD account in which my salary is remitted every month. I also have some investment which generate some income.

Can you please guide me that where should I mention my foreign income in the tax return. I transfer my salary from USD account to my PKR saving account as per requirement. Also is there any exemption on tax on profits in PKR account? 

Waiting for your kind reply.

Answer 1

Non-residents Pakistanis are usually not required to file tax-returns. Your income (foreign) has nothing to declare in tax-returns. Instead you will report the remitted amount to Pakistan in remittances. Many people confuse foreign income and remittances. Here’s a simple way to tell them apart:

• Remittance: This is money you earn and send to Pakistan from abroad while being a non-resident Pakistani (spending less than 183 days in the Pakistan in a tax year). This money is tax-free in Pakistan.
• Foreign Income: This is income earned by a person who is a resident Pakistani (spending 183 days or more in the country). If you live in Pakistan and earn money from a business, property, or services abroad, that is considered foreign income and is taxable in Pakistan.

The critical factor is your residency status, not just where the money is coming from.

The Roshan Digital Account (RDA), launched by the State Bank of Pakistan, offers tax benefits to Non-Resident Pakistanis (NRPs):

• Full tax exemption on RDA profits (no withholding tax).
• Fixed 10% final tax on Naya Pakistan Certificates (NPCs).

For further details visit Overseas Pakistanis Tax Guide