ANSWERS TO QUESTIONS RAISED POST # 83010,

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Adil replied on Sunday, May 29, 2016 06:37 AM PST

Dear Sir,
Thank you very much for guiding us. I have one question. If I buy property from this money then do I need to pay any property tax. What about income tax if I invest this money in plots and then sale these plots and buy new one.

ANS:

Taxes are levied on buying and selling which obviously one has to pay. Selling your plot on profits incurs Capital Gains and it is taxed in Pakistan when you sell your property, but additional income from selling your property counts towards your income in Pakistan which at the end of the year is Taxable. Please consult a lawyer on these matters, as I am not an expert. I am only telling you what I have gone through. You are subjected to WHT 2% for non filers and 1% for filers which is adjustable in your tax returns. Lawyers usually play around with these taxes which are already paid and adjust your income according to that.

Pakistan� replied on Sunday, May 29, 2016 08:53 AM PST

about bringing money in laptop. One can bring upto 10,000 US dollar while travelling as per IATA standards

ANS:

Mr. Farhan has answered this question absolutely perfectly. I will copy/paste.

Farhan replied on Sunday, May 29, 2016 09:33 AM PST

Dear this 10000US Dollars is the amount which you can take with you from Pakistan as mentioned on airport also. From saudi arabia you can bring declared 60000 SAR with you without any information to airport airport authorities However you can also bring more SAR but in that case you have to declare what is the source of funds which you are taking with you. You can get your company certificate to justify this amount like you taken loan from company or bank etc.

UAE Investor replied on Sunday, May 29, 2016 09:15 AM PST

I have been sending money to Pakistan from UAE on regular basis. I have made few investments in DHA, Bahria etc. Here is how I transfer funds:
I have joint account (me and my wife)Dirham currency account in United Bank Limited Dubai branch. Then I have an account in PKRs in UBL Pakistan.
I keep all my savings in UBL Dirham account and when I am planning to invest in Pakistan, I transfer the required funds from Dirham account to my UBL PKRs account in Pakistan. Money gets transferred within 1 hour. Let me tell you that UBL gives the best possible exchange rate and no service charges. So I get the maximum benefit with this arrangement.

However, what I am more interested in knowing is that what will be mechanism if I want to transfer UAE dirhams from Pakistan to UAE. What is the most cost effective, transparent and legal method???

ANS:

Please do get PRC from UBL and keep those for records. I have no idea about transferring money out of Pakistan, but(I think) as long as your money is white and you are sending money to blood relative its all fine. The same bank where you are holding your AED account can transfer.


NAM replied on Sunday, May 29, 2016 09:35 AM PST

But where is the answer asked in post # 82999? Still nowhere.

ANS:

You are SPOT on. Transferring money outside Pakistan is one the most difficult thing you will encounter. Bringing in the money is easy taking it out will be difficult. First of all you should have your Tax records straight and the amount which you are sending should be justified from your TAX returns. Secondly, any USD based account in Pakistan can be used to transfer money abroad. Bank will require proofs and documentation from where the money is coming from and where you are sending. If you go to EXCHANGE companies they will only transfer to blood relatives. It is best to ask your lawyer who handles your tax returns.





Mustafa replied on Sunday, May 29, 2016 09:44 AM PST

I really like the way you have explained everything in detail for investors. May Allah reward you for your effort. I confirm that everything you detailed here is exactly how it is supposed to be and this is how I manage my funds to maintain a legal record of everything. Good day!

ANS: Thanks you for your appreciations

Syed ANZ replied on Sunday, May 29, 2016 10:20 AM PST

JizakAllah SA brother for the guidance,

Just one question, you mentioned that when we overseas become filers then no WHT on property, car, cash, bank transactions etc. Is it really no WHT for us after filing or will it reduce from 0.6% to 0.3% etc.

ANS:

When any person becomes a FILER certain restrictions are lifted. For example when you buy property filers will pay 1% WHT where as non filers will pay 2% WHT. This Gap is going to be widened in the upcoming budget. WHT is applicable on DC Value of property. Same is the case with NEW car purchase WHT is lower for filers and double for non filers. Cash withdrawal for FILERS will be 0.3% and non filers 0.6%. CHQ , PO, or online TRANSFER will not have any WHT on Filers and 0.6% for non filers.
As we are discussing property here and usually we pay through PO. Filers will be saving 0.6% on money transferred Plus 1% WHT on property DC Value. It is worth to become a filers SPECIALLY for overseas.


Omran replied on Sunday, May 29, 2016 10:34 AM PST

What is PRC stands for ?
Is it a receipt or kind of certificate issued by the bank ?
What if I want to get last three years PRC ? Is that possible?
I have complete record of foreign transaction from Saudi Arabia to Pakistan e.g ( quick pay, Speedcash and telemmoney etc)
Note:Me and my wife both are sending remittance in one account Last year I have visited STandard chartered bank in Pakistan and bank PR officer told me that they cannot issue PRC as amount transfered in my a�count is done via cheque and they cannot recognize it as foreign remittance?
What kind of documents I need to produce before bank to receive PRC?

ANS:

Mr. Ahmad has answered what PRC stands for. Thank you. PRC is “Proceeds Realisation Certificate” issued by the bank which brings in your foreign remittance into Pakistan.

You can get PRC from the bank anytime you want. They have all the records. I got mine from HBL after 8 years. HBL charged me for older PRC. But within same fiscal year they are obligated to provide you with one.

Please ask quickpay speedcash telemoney about their banking partners in Pakistan. Once you know the bank you can send your receipts to that bank ( VIA EMAIL TO THE CONCERNED DEPARTMENT )which brought your money into Pakistan. That bank will send PRC to your branch where you will collect it. I have SCB account and they are least helpful in this matter. As money is transferred from local bank they don’t have any record of foreign remittance. And they will not ask the intermediary bank to issue PRC on their clients behalf. You have to do it yourself.

SA2 replied on Sunday, May 29, 2016 10:36 AM PST

Dear SA,
Thanks for your information . However I do not agree on one point that is if you send to your dollar account in Pakistan and then concert to PKR . how it become black money

ANS:

You have all the right to disagree with me. I have USD account in SCB Pakistan. I transferred in USD to my account. When I went to the bank for PRC they said we will not give me PRC unless you transfer USD into PKR through their OWN bank. Rate for USD in open market was 100 and bank was offering 95, after an hour of negotiations bank offered me 96 as their best rate. They only offered me a “CREDIT NOTE” which states where the money came from, but when FBR was contacted they refused to acknowledge the payment as foreign remittance and asked for PRC.

I only said if you convert dollars from the bank which HOLDS your USD, they will provide PRC. If you go after better rate and change from money changers no one will be able to give PRC which in turn will change your money to Black money.

kam replied on Sunday, May 29, 2016 11:19 AM PST

i have done my all transaction from Saudi Arabia to askari bank via fawari transfer and askari bank issued me a transaction number for each transaction. how can i get PRC while i am living in Saudi arabia?
wht is PRC.?

ANS:

I don’t know which bank fawari uses. Please ask them about Pakistani bank which handles their remittances. And Email the concerned department of Pakistani bank along with proof of sent receipt. They will send PRC to your branch where you can collect it. If Askari bank have given you transaction numbers and it was deposited into your account then ask Askari bank for PRC of each amount transferred into your account.

PLEASE Note that money received as CASH will not be claimable as white money in FBR tax returns.

Hassan replied on Sunday, May 29, 2016 01:53 PM PST

@SA. For Non resident Pakistani,your taxable income is NIL. But please guide do you have to declare the income earned overseas and do you have to file a wealth statement also when you file your income tax return.

ANS:

Yes you have to file a wealth statement along with your income tax returns. All your properties will be showing in your wealth statement.

Thanks to all other people whom i did not mention. JAZAKALLAH.