What is the procedure for an overseas Pakistani to maintain a 'Non-Resident' status?

Question

I live and work in Dubai and only visit Pakistan for a month each year, so I want to be sure that the FBR won't tax my foreign income under the current residency rules.

Comments

Yes, under current Pakistani tax law (ITO 2001), whether the FBR will tax your foreign income depends primarily on your residency status for tax purposes.

Based on the facts provided, you fall under the non-resident category for Pakistan tax purposes. Generally, expatriates living and working abroad (such as in Dubai) are treated as non-residents if:

Their stay in Pakistan is less than 183 days during the tax year; and
They are tax resident in another country (e.g., the UAE).

Accordingly, as a non-resident, your foreign-source income is not taxable in Pakistan, and only Pakistan-source income, if any, would be subject to Pakistani tax.

Answer 1

If you live and work in Dubai and stay in Pakistan for only about one month per year, you are treated as a non-resident under Pakistan’s tax laws.
As a non-resident, your foreign income is NOT taxable in Pakistan.
FBR can only tax Pakistan-source income, if any.
Just ensure your stay remains under 183 days in a tax year.
Keep travel records as proof, in case FBR ever asks.