Pakistan Tax Return for Overseas Pakistanis: Iris Guide

Pakistan Tax Return For Overseas Pakistanis: IRIS Guide

Step-by-step FBR Iris filing guide for overseas Pakistanis and non-residents: ATL benefits, Section 236K property savings, and Pakistan-source income rules.

By Syed Asad Hussain Zaidi · 5 September 2026

Author Note / Last Updated: Updated for Tax Year 2027 by Syed Asad Hussain Zaidi | Advocate High Court | Senior Corporate & Tax Advisory Counsel

For overseas Pakistanis living in the UK, UAE, US, or elsewhere, maintaining active status on the FBR Active Taxpayer List (ATL) is essential when transacting in Pakistan. Filing an annual return as a Non-Resident ensures Active Taxpayer status, unlocking reduced withholding rates on property acquisitions and banking transactions without subjecting foreign-earned income to Pakistani taxation.

Here is the exact procedure to file an accurate Non-Resident return on the FBR Iris portal.

1. Core Statutory Principles for Non-Resident Filers

Under the Income Tax Ordinance, 2001, individual tax liability is determined by residency, not nationality:

| Criterion | Statutory Rule | Reference | | :--- | :--- | :--- | | Tax Residency Test | An individual is Non-Resident if present in Pakistan for 182 days or fewer during the tax year (1 July to 30 June). | Section 82 | | Scope of Taxable Income | Non-residents are taxed only on Pakistan-source income (e.g., local rent, agricultural yield, dividends). Foreign salary and offshore assets are excluded. | Section 11(5) | | Wealth Statement Scope | Non-residents are not required to reconcile worldwide foreign assets under Section 116; only Pakistan-sited assets and income are declarable. | Section 116 |

2. Financial Benefits of ATL Status for Overseas Pakistanis

Maintaining Active Taxpayer status substantially reduces withholding taxes on Pakistani investments:

| Investment / Banking Transaction | Active Filer Rate | Non-Filer Rate (Tenth Sched.) | Financial Advantage | | :--- | :--- | :--- | :--- | | Property Purchase (Section 236K, up to PKR 50M) | 1.25% (PKR 625,000 on 50M) | 10.5% (PKR 5,250,000 on 50M) | PKR 4,625,000 Saved | | Banking Cash Withdrawals (> PKR 50,000/day) | 0% (Section 231AB) | 0.9% (Section 231AB) | Full Exemption | | PSX Stock Dividends | 15% | 30% | 15% Spread |

3. Step-by-Step Iris Filing Procedure for Non-Residents

Follow these verified steps when completing Form 114(1) on the Iris portal:

  1. Verify Physical Presence Days: Confirm you spent 182 days or fewer in Pakistan between 1 July and 30 June of the relevant tax year.
  2. Access Iris Portal: Log into the official FBR Iris portal using your CNIC or NICOP credentials.
  3. Open Form 114(1): Select Return of Income Filed Voluntarily (Form 114(1)) for the applicable tax year.
  4. Set Residency Status: In the Attributes section, set your residential status to Non-Resident. This scopes your reporting obligations strictly to Pakistan-source income.
  5. Declare Pakistan-Source Income: Enter rental income, capital gains, or dividend receipts originating in Pakistan. If you have no local income, submit a nil declaration.
  6. Report Roshan Digital Account (RDA) Yields: Withholding tax on Naya Pakistan Certificates or RDA accounts is deducted under the Final Tax Regime (FTR) and mapped under final/fixed tax heads.
  7. Verify and Submit: Enter your four-digit transaction PIN to submit the return. Once processed, your status on the Active Taxpayer List will update accordingly.

4. Key Considerations for Overseas Filers

Frequently Asked Questions

Can I register on Iris without a Pakistani mobile phone number?

Yes. The FBR Iris registration system allows overseas Pakistanis holding a valid NICOP to receive OTP verification on an international mobile number and email address.

Does filing a Pakistan tax return affect my UK or foreign tax status?

No. Pakistan taxes non-residents strictly on Pakistan-source income. Under the UK–Pakistan Double Taxation Agreement, source-country taxes paid in Pakistan can be credited against foreign tax liabilities where applicable.

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Legal & Statutory Notice: The information provided in this publication is for general educational, academic, and statutory informational purposes only under the relevant laws of Pakistan (including the Income Tax Ordinance, 2001, the Companies Act, 2017, and the Trade Marks Ordinance, 2001). This content does not constitute formal legal, financial, or tax advice. For specific assessments, consult a licensed Advocate or qualified tax professional.