Property Purchase Decision in Pakistan, FBR (Federal Board of Revenue) publishes a circular in which they clearly allowed foreign buyers of real estate to buy real estate more than 5 million, advertised in news stations. The requirement to be a registrant of income tax returns for inheriting property above the declared price measurement was also abolished.
The main concern about lifting the ban is aimed at easing the investment conditions of the real estate market, which is seeking attention for the foreign Pakistanis. This ban was established by the previous government to try to increase the number of taxpayers.
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The detailed information on allowing foreign non-registrants to buy property in Pakistan was shared by a circular issued on October 24, 2018, saying that the restriction to non-registrant for purchase of property worth more than 5 million was revoked for legal acquisition of property and non-resident Pakistanis.
These limits will not apply to foreign Pakistanis who will create a bank certificate as proof of foreign currency sent by other countries through common banking means. The certificate was divided into 60 days the date of presentation or shipment of fixed assets estimated at more than 50 million PKR.
The banks were also given instructions to provide a list containing details of deposits collecting Rs10m or more made during the calendar month and a list of payment made by anyone against credit card bills collecting Rs200,000 or more during the previous calendar month. They will also provide a list of people who receive a benefit due to debt exceeding Rs1m for registrants and Rs500,000 for non-registrants along with information on tax deductions during the previous financial year. The information will be given monthly.
By improvement, the government has allowed taxpayers to reconsider a tax return voluntarily until December 31, 2018, along with the payment of a higher tax rate that is 25pc greater than the tax paid with income based on income. In case no tax is payable, the taxpayer will have to pay 2pc of the turnover.