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Transfering money from Pakistan,

(50101)
   Zahid Aslam
Tuesday, January 20, 2009 09:56 AM 
Reply: >
Dear Readers

I would like to get some advice on how to bring money back over from Pakistan to the UK. I have always sent money to Pakistan and it is the first time i'm bringing it back.
I would appreciate any information you could provide in this regard.
Hi replied on Tuesday, January 20, 2009 10:04 AM 

Ask any politicians, they are sending billions out of Pakistan to every country of world. ;)
from Uk replied on Tuesday, January 20, 2009 10:50 AM 

If you know someone who has CitiBank account in UK then its easy, pop into any CitiBank branch in Pakistan and deposit the money in that account. they wont charge you for this

Or

Go to any Money Exchange and they will arrange this for you

I recommend the first option
Zahid Aslam replied on Tuesday, January 20, 2009 11:00 AM 

Thankyou for your advice have you used the citi bank method before and are there any charges and how long does it take to transfer the money across.
waji replied on Tuesday, January 20, 2009 11:24 AM 

I used to get money from Pk to oversea's by Kalia Khanani Exchange... but unfortunetly ...
from UK replied on Tuesday, January 20, 2009 11:30 AM 

i use it all the time, its an instant transfer if you pay deposit to that account,

no charges at all
Jameel replied on Tuesday, January 20, 2009 04:18 PM 

when you get money Back to UK you will have to file Tax on it, it depends in which income Bracket you are, most people lose 20% to 33% of their money.
If you dont want to spend it in UK then Other option is to let it stay in pakistan in FC, or tranfer to offshore account or Deposit is National savings in pakistan. Most of people who will need money in Pakistan let it stay in Pak as there is not fun of Paying Tax again and again.
Hameed replied on Tuesday, January 20, 2009 04:54 PM 

I seriously dought if there is any tax that you have to pay on the money that you transfter from another country. You pay tax in the country where the money came from. At least that is the case in USA not sure about UK.

If that is the case that would be dis-insetive for foreign investors.
abj replied on Wednesday, January 21, 2009 06:00 AM 

Not sure about other countries, but in United States, if resident or citizen, you pay tax on Income earned in any country. Money in a bank account is not considered income, but Interest on that money is considered income, and is taxable, no matter what country you earned that interest in. Short answer, just tarnsfering your money into the US is not taxable. Income is taxable, money in the bank is not. You have 10,000 in a bank account, and it earns 100 dollars interest, you pay tax on the 100 interest only. If money is in a non interest bearing account, you dont pay any taxes on principle regardless of amount.


I am not sure about UK taxes, but have serious doubts they would tax money like take away 20% to 30% if one tarnsfers any money from a foreign country. Not sure how many people will transfer money to the UK, knowing they would take away their own hard earned money and would be a total counter productive measure. Thats telling investors to please stay away from UK. I would hope the UK govt. is a lot more intelligent than that, but again, "just my opinion, and dont know that for a fact how UK tax system works". A logical thing, and a thought process behind policy makers in a developed country would be to encourage investors to bring in money to the UK, get it invested to create jobs for the UK people, and then collect taxes on sales and profit.
limo replied on Thursday, January 22, 2009 09:18 AM 

abj, the principal ammount held in a bank once excedes a certain limit becomes liable to tax.Probably what you are talking about is income tax,not property or wealth tax.
Habib replied on Thursday, January 22, 2009 10:41 AM 

If your Bank balance increases by transfer of money form Pakistan you will have to answer how you got this money, It is income? is it heritage? etc You will have to pay tax accordingly each have different rates. If you could convince that i tranferred money to Pakistan and kept for while there and same money I am tranferring Back then you will have to show the Proof.
Zahid Aslam replied on Thursday, January 22, 2009 04:18 PM 

I am already selling my land in Pakistan at a very low discounted price and I dont want to pay further taxes. Do Citi bank ask all these questions because my brother sent tohe money to Pakistan through money exchanges and it will be diffcult to prove the money that was sent over. So could From UK sahib explain the procedure of citi bank.
abj replied on Friday, January 23, 2009 02:44 AM 

Limo,
In United states, you dont have any wealth tax, and if there is such a thing, it does not apply to the money in the bank. If you are referring to the Capital gains Tax, thats on stocks or certain short sold transactions. Your comment may be true for Pakistan, or some other country. Income Tax on Income, Sales Tax on Sales, Property tax is on Property, and capital gains on dividents or certain transactions. Putting Tax on money held in a bank account is not a US concept. It may be true for pakistan, I doubt it for UK (not sure), and am sure of US, its not the case.

The banks have no right to ask you where you got the money. It is a private busienss and has no authority to ask you these questions. Hwoever, if you transfer the money into a forign acccount, the Tax dept. in any country can ask you, if they have reason to suspect tax was evaded. Your bank account should be in proportion to your declared income on your tax return. If you try to evade taxes, it is a crime, and if caught, the worry is not just about paying tax and penalty, but unfortunately a long jail time as well.
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