Buying or selling property from abroad: paying advance tax at the filer rate with a POC or NICOP
Advance tax on property in Pakistan is far higher for non-filers. Overseas Pakistanis who are non-resident can qualify for filer rates without filing a return — if they follow the procedure.
Published 26 October 2026
The two taxes involved
Section 236K of the Income Tax Ordinance, 2001 imposes advance tax on the purchaser of immovable property; section 236C imposes advance tax on the seller. Both are charged at different rates for active filers, late filers and non-filers, with non-filer rates several times higher.
The concession for overseas Pakistanis
FBR allows overseas Pakistanis to pay at the filer rate even if they are not on the Active Taxpayers List, provided they hold a Pakistan Origin Card (POC) or a National Identity Card for Overseas Pakistanis (NICOP) and are non-resident — that is, they spent fewer than 183 days in Pakistan in the tax year.
The procedure
The buyer or seller declares the POC or NICOP number on FBR's portal when generating the payment slip (PSID). The registering authority — the sub-registrar or housing authority — verifies the documents and accepts payment at the filer rate. Errors at this step are the usual reason overseas clients end up paying non-filer rates and then chasing refunds.
Rates change every budget
The rate bands are revised in the federal budget each year, so confirm current rates for the tax year of your transaction before transferring funds. Keep evidence of non-residence (travel history, foreign residence documents) in case your status is questioned.
How we help
We handle purchases and sales for clients abroad end-to-end — title checks, tax computation, PSID generation, registration and transfer — usually under a power of attorney. See our Tax practice and buying and selling property from abroad.
Frequently asked questions
Do I need to file a tax return to get the filer rate?
Not if you hold a POC or NICOP and are non-resident under the 183-day test; you declare the card number when generating the PSID.
Which sections apply?
Section 236K for the buyer and section 236C for the seller.
Are the rates fixed?
No — they are revised in each annual budget, so check the rates for the year of your transaction.
This article is general information as of October 2026, not legal advice. Rules change; contact the firm about your specific matter.