Exemption because of tax treaty

i) Assets acquired by the alone from the business accustomed in Pakistan; or

ii) Any adopted antecedent assets has been brought into Pakistan or accustomed in Pakistan by the person.

Foreign-Source Assets of Abiding Expatriates: [51]

Foreign-source assets of a Pakistani abiding aback in Pakistan is absolved for two years starting from the year in which he became aborigine if:

i) The assets accrues or arises alfresco Pakistan.

ii) The being was not aborigine of Pakistan in any of the four years anon above-mentioned the year in which he became afresh resident.

For example:

Mr. Ali was acclimatized in England with his ancestors back 2001 as a aftereffect of immigration. He alternate to Pakistan in March 2008 to abide in Pakistan afresh as a resident. He becoming Rs.500,000 as assets from business in England and brought it into Pakistan. His assets from business shall be absolved from tax for the tax year 2008 and for the tax year 2009.

However, bacon assets of a Pakistani shall be absolved from tax if the individual:

a) Left Pakistan during the tax year;

b) Remained away during the tax year; and

c) Becoming such bacon assets from alfresco Pakistan during the tax year.

Exemptions beneath Part-1 of the Second Schedule:

Part-1 of the Second Schedule provides assertive incomes, or classes of incomes, or bodies or classes of bodies which shall be absolved from tax, accountable to the altitude and to the admeasurement defined beneath anniversary case.

Employee of Agha Khan Development Network Pakistan (AKDNP)

The bacon assets of a being alive as an expert, advisor, adviser or chief administration agents in any academy run by AKDNP is absolved from tax if the agent is not aborigine of Pakistan.

Salary Assets of a Pakistani Bluejacket Alive on a Adopted Ship:

Salary assets acquired by a Pakistani bluejacket alive on a adopted barge (or on Pakistan banderole argosy for 183 canicule or added during a tax year) is absolutely absolved from tax; if it fulfills the afterward conditions:

a) Bacon assets is remitted to Pakistan not after two months of the accordant assets year.

b) It is remitted through accustomed cyberbanking channels.

Allowance etc. to a Being Alive Alfresco Pakistan:

Any allowance or allurement paid or accustomed by the Government of Pakistan to a Pakistani appointed by the Government of Pakistan to a Pakistani appointed by the Government of Pakistan in any adopted country is absolved from tax and who accomplish casework for Govt. of Pakistan in any adopted country and such allowance or allurement is aswell paid or accustomed in adopted country.

Explanation:

Mr. Ansar is alive as Pakistani High Commissioner in USA. The Government of Pakistan has incurred the afterward expenditures in annual of:

Utilities allowance Rs.100, 000

Conveyance allowance Rs.150, 000

Rent chargeless adaptation Rs.270, 000

Point to be noted:

Although utilities, conveyance and adaptation are taxable but if these are accustomed or accustomed to a Pakistani in any adopted country. So, all allowances accustomed by Mr. Ansar are absolutely absolved from tax that he is assuming casework alfresco Pakistan on annual of the Govt. of Pakistan.

Pension:

Pension accustomed by the afterward bodies is absolved from tax:

1) Alimony accustomed by any aborigine of Pakistan.

2) Alimony accustomed by associates of Armed Forces of Pakistan or advisers of the Federal Government or a Provincial Government.

3) Commutation of alimony accustomed from Government or beneath any alimony arrangement accustomed by the FBR.

4) Alimony accustomed by the families and audience of accessible agents or associates of the Armed Forces of Pakistan who died during service.

4) Alimony accustomed by the families and audience of "Shaheeds".

5) Alimony of above President of Pakistan and his added beneath the President Alimony Act, 1974.

Notes:

i) Exemption in annual of alimony shall be aloof if the retired being is re- active by the aforementioned employer or an accessory of the employer.

ii) Where a being receives added than one pension, again alone one alimony accepting college bulk shall be absolved and actual others shall be taxable.

Leave Encashment:

Any sum apery encashment of leave basic to retirement of a affiliate or the Armed Forces of Pakistan or an agent of the Federal Government or a Provincial Government is absolutely absolved from tax.

Annuity:

An accomplishment accustomed from Pakistan Postal Accomplishment Certificates Arrangement is absolved upto Rs. 10,000. Assets from all added annuities is absolutely taxable.

Funds:

Any bulk accustomed by any being on annual of:

i) Provident armamentarium registered beneath the Provident Armamentarium Act, 1925.

ii) Accumulated antithesis of accustomed provident fund.

iii) Benevolent Fund.

iv) Accustomed superannuation fund

v) Workers' Profit Participation Armamentarium (WPPF)

Accumulated Antithesis of Provident Fund:

An accumulated bulk accustomed by an agent accommodating in a provident armamentarium is absolved from tax provided that it is a accustomed provident fund.

Explanation:

Only the accumulated antithesis of employer's addition and absorption on such addition shall be taxable in the year of cancellation in case of anonymous provident fund, if the armamentarium has not been accustomed beneath the Provident Armamentarium Act, 1925