Hi dear all
Actually this is not property related issue,, but important to all of us specially (for overseas Pakistanis) who do their transactions through banks ,to settle realestate payments.
the banks (govt tax imposed) charging .6 percent to withdraw cash ( amt exceeding pk 50000)and .4 percent if through chq.
pls if some one know the way to save this hard earning money specially for overseas Pakistanis ,,
as I heard that their is no tax to sending money from abroad ,, how could we save this .6 percent and .4 percent.
pls advise
Mousa replied on Sunday, April 24, 2016 02:57 PM
I am sending cash payment to pak though money gram up to 5 lakh from Ksa.No Tex imposed by banks.but for larg amount u need to show evidence to bank. There are overseas account u can open in pak bank.i yhink that are exempt from texes. |
aamer replied on Sunday, April 24, 2016 03:52 PM
Dear Mousa
I know that there is option of sending money through money gram/ western union or even through banks cash payments,, but after all FBI may inquire you,, if you buy or sell any investment/property,,
because their is no evidence of money transferred into your name or in your account.. |
Ahmed replied on Sunday, April 24, 2016 04:02 PM
Online evidence is always there with Western Union. You can make an online account. And FBI or any other authority has nothing to do with it as long as money is legal and it is transferred to you or your family. Nothing happens. |
Ahmad786® replied on Sunday, April 24, 2016 04:37 PM
Keep your money invested in offshore company and send your money to any country as dividend or profits. |
Faiz® replied on Sunday, April 24, 2016 05:06 PM
Dear,
First of all you have to enter you name in ATL list (active tax payer).You have to give some basic info about your assets to your tax lawyer, he will charge you 5000 t 10000 rs and your name will be appeared in ATL list
Once your name in ATL list then a lot of benefits like if buys a plot then tax is double if your name is not in ATL list and is half if your name is in ATL list.
Similarly if your name is in list then the charges in Pakistan bank to bank transfer through bank draft is zero so if you send money there is no charges for overseas transection and if you want to pay to somebody just pay by crossed cheque or bank draft then there will be no charges.
but yes you can not take cash more than 50000 one day then the bank will chagres.
I hope you understand. |
Learning replied on Sunday, April 24, 2016 06:11 PM
Interesting discussion here. All the participants above have spoken but the very answer Mr. Aamer needs to know is still nowhere. Aamer & Ahmed is it FBI or FBR? Clarify pl. |
Ahmed replied on Sunday, April 24, 2016 06:41 PM
@Learning It is FBR, but aamer said FBI, so I too used FBI for his understanding! FBR is Federal Board of Revenue.
And I have pretty much answered his question. In short, use Western Union online, everything will work. |
Tayyeb replied on Sunday, April 24, 2016 07:24 PM
Here there are two questions. First regarding WHITE money to which I will reproduce the relevant section 111 (4)(a) of income tax ordinance 2001 of Pakistan which states "to any amount of foreign exchange remitted from outside Pakistan through normal banking channels that is encashed into rupees by a scheduled bank and a certificate from such bank is produced to that effect". For sure money remitted through banks and exchange companies especially from middle east and deposited into a bank account in Pakistan is white money. Secondly, the question of deduction of 0.6% withholding has been explained in detail by @Faiz. Here in UAE, National Bank Exchange issues rupees denominated Pay Order of any amount which can save the withholding deduction if the same is issued in Pakistan by a bank. |
L@hore replied on Monday, April 25, 2016 03:23 AM
@Tayyeb Sb,
thanks for explanation!!
but i have one more question as you quoted relevant section on income tax ordinance,
Is it necessary to encashed foreign remittance into rupees from bank in order to avoid tax on that income?
How about if money is white and is coming through proper bank channels in to any foreign currency account in any local Pak bank but we withdraw foreign current rather than encashment from bank in PKR?
Do need to pay tax on such foreign remittance case?
thanks. |
aamer replied on Monday, April 25, 2016 05:10 AM
sorry its FBR ,,
THANKS of feedback. |
Tayyeb replied on Monday, April 25, 2016 06:09 AM
Foreign Currency remitted into bank has then to be encashed by the scheduled bank. As an example, you remit $ 100,000 into your Dollar account in Pakistan if these are converted into Pakistan Rupee by teh scheduled bank it will remain WHITE. However, if your withdraw dollars and get it converted into Pakistan Rupees from any dealer / exchange (as the rate is higher in open market and there is an incentive for this) and not the bank, it will no more remain WHITE. This is my interpretation and understanding, you can confirm from some one else also to be 100% sure. |
HussainD® replied on Monday, April 25, 2016 06:38 AM
Getting money exchanged from an authorized money changer will still be a white money if you have proper documents, proof of receiving money in bank account and then receipts of exchange, etc. Money does not change colour so easily and quickly that t will become black if you do not exchange it by a bank. lol |
HussainD® replied on Monday, April 25, 2016 06:44 AM
And you cannot save WHT on cash withdrawal but you can save WHT on transfer and issuance of instruments if you are on ATL (as mentioned above). To be on and to remain on ATL you need to have a NTN and submit your tax return every year. I live overseas and have an active NTN. I transfer money to my FC account and sometimes to my PKR account and do not pay withholding tax on pay orders and cross cheques as I am on ATL. I hope it helps. |
Tayyeb replied on Monday, April 25, 2016 07:28 AM
@HussainD. It is advised to keep the remarks like "lol" to your self as it is a serious discussion and not a joke. Whether the money changes color or not one only finds out when he is taxed unnecessarily due to an unprofessional advise. Do not misguide others by presumptions, tax law is very clear and there are no two interpretations that the encashment has to be from a "scheduled bank" and money changers are not scheduled banks. |
aamer replied on Monday, April 25, 2016 07:41 AM
Thanks to all brothers
I am living in Kuwait,, from Kuwait may I get NTN ( IF I ASK SOME ONE IN PAKISTAN TO GET HELP OF ANY TAX LAWYER)..
COZ AS I MENTIONED ABOVE I BOUGHT A HOUSE IN LAHORE ,, WHEN I WITHDRAW SOME AMT THROUGH PAYORDERS BANK THEY CHG ME .4 WHT... |
HussainD® replied on Monday, April 25, 2016 04:08 PM
babloo bhai mind kyoun kerta hai, tu professional munshi ban ja meri khair hai, mujhay es tarah ka koi shauk nahi |
