Lahore Real Estate Forum

Start NEW Topic Or Post Advertisment

                                                          
 
Back to Forum |

Lahore Real Estate Forum: Property News & Community Talk : ,

(116679)
   KSA
Saturday, June 22, 2019 02:49 PM 
Reply: >
Dear Tax Experts,

In past five years, I have bought two plots. One in DHA Multan (transferred money to my younger brother account, and he purchased on my behalf. He is a student and have no source of income). 2nd plot, I bought by sending directly to owner money in installment remittances.

I am a non-resident since last 10-years. Do, you advise me or my brother to become filer??
:h
Adnan replied on Sunday, June 23, 2019 05:56 AM 

ok so I am in the same situation, only that my brother is already a filer. According to the law (available on the FBR website), if you are a non resident and you do not have any income in Pakistan, you do not need to be a filer. Non residents are also not required to furnish wealth statements. If the money to buy plots was sent through banking channels (currency exchanges in the gulf also have a forwarding local bank in Pakistan) and you do have documents to show the transfer of funds, no need to become a filer since plots do not generate income. If you sell those plots in the future, then you need to be a filer to enable FBR to determine whether or not you should be charged any capital gains tax. However, with the current situation in terms of inflation, devaluation, etc. there will not be any capital gain in the foreseeable future. This is my take so far, and I plan to sit with a tax adviser in Pakistan on my visit next month. If any one on this forum can add or clarify, that will be wonderful.
amjad replied on Sunday, June 23, 2019 10:37 AM 

I am in a little bit different situation. I am a tax payer and paid instalments of my brother's plot with an understanding that he will pay when he returns. so please guide me.
faiz ahmad replied on Monday, June 24, 2019 06:51 AM 

As you have send your money through bank and you have bank receipts, your money is white.this amnesty scheme is not for you.
Still I advise you to become filer as non resident pakistani without paying any tax and mention your these two plot in your wealth.
Adnan replied on Monday, June 24, 2019 07:07 AM 

An update for overseas Pakistani brothers, I spoke to FBR today and was informed that non resident pakistanis do not need to be a filer if they do not have income in pakistan. As long as you have sent the money to buy property in pakistan that can be verified by bank through a foreign remittance certificate, it is white and tax free. The only drawback of being a non filer non resident will be having to pay higher tax on sale of property (non filer tax rate is higher). So until you do not decide to sell the property, no need to be a filer. Although you can become a filer online and can file a zero income tax return online as well, once a year, without having to hire a tax adviser or coming to Pakistan. So I have decided to not become a filer until such time that either I have income in pakistan or have to sell my plots and invest elsewhere. Decision is upto the individual. Same thing I said in my previous reply on this post but now its ratified by FBR. You can call directly to the FBR hotline at any time @ . Hope this helps.
Tahir C. replied on Monday, June 24, 2019 09:40 PM 

@Adnan... Thanks for sharing. I sent an email query to FBR helpline last week but got no reply even after 7 days. Had asked similar clarification in my own specific situation. A lot of Overseas/Non Residents are still not clear with "Disclosed/Declared" and "Undisclosed/Undeclared" e.g National Saving Scheme investments other than Real Estate.
Adnan replied on Tuesday, June 25, 2019 04:57 AM 

@Tahir C. Amnesty scheme is clear, if the money is legitimate and you can prove the source, e.g., remittance certificates that your bank has to issue, you do not qualify for the amnesty scheme. If you send money from pakistani bank overseas branch to the same bank pakistani branch, e.g., I send from HBL Bahrain to HBL pakistan, no need for remittance certificate, your bank statement is good enough. However, if the sending bank is different, or if you send via money exchange to your bank account, the money exchange will send to their corresponding bank in pakistan which may not be your bank, so your branch then needs to obtain a remittance certificate from the corresponding pakistani bank, which is a bit of a hassle but if you have good terms with your branch manager, this should not be problem. Amnesty scheme is for black money only, if your money is white, relax.
>