Non-Resident Property Sellers Exempt from 7E

This article aims to clarify the recent regulations concerning non-resident individuals selling or transferring immovable property in Pakistan.

Key Points:

  • Provisions of section 7E of the Income Tax Ordinance, 2001 (ITO 2001) regarding evidence submission for property transfer apply only to resident individuals.
  • Non-resident individuals, including non-resident Pakistanis, are exempt from tax under section 78 of the ITO 2001.
  • Therefore, non-residents don’t need to comply with the specific mode and manner of evidence submission stated in Circular No. I of 2023-24.

Requirements for Non-Residents:

  • When selling or transferring immovable property, non-resident individuals need to submit a duly filled Form-B along with a scanned copy of their valid passport.
  • Non-resident Pakistanis must additionally provide a copy of their CNIC (Computerized National Identity Card), NICOP (National Identity Card for Overseas Pakistanis), or POC (Pakistan Origin Card) along with Form-B and the passport copy.

Verification by Transferring Authority:

  • The transferring authority will verify the credentials declared in Form-B and ensure that the non-resident individual stayed in Pakistan for less than 183 days each year they claim non-resident status.
  • This verification applies to the relevant tax year(s) for which the individual claims non-residency, such as 2022 or 2023.


While resident individuals have additional requirements for property transfer under ITO 2001, non-resident individuals, including non-resident Pakistanis, face a simplified process. They only need to submit specific documents and meet the residency criteria to proceed with the transfer. This clarification aims to provide clear information for non-residents navigating property transactions in Pakistan.

Leave a Reply

Your email address will not be published. Required fields are marked *