If you are planning to leave Pakistan permanently, it is crucial to understand your tax obligations before departure. Failing to comply with tax laws can lead to asset freezes, recovery proceedings, or other legal consequences. For tax year 2026, the Federal Board of Revenue (FBR) emphasizes compliance under Section 145 of the Income Tax Ordinance, 2001.
Here’s an interactive guide to help you navigate your tax responsibilities before leaving Pakistan.
✈ When Must You Notify FBR?
Under Section 145(1):
• Any person likely to leave Pakistan permanently must notify the Commissioner Inland Revenue.
• Notice must be submitted at least 15 days before the expected departure date.
• This “probable date of departure” is critical for initiating tax assessment.
📌 Early notification allows the FBR to complete assessments before you leave.
🧾 Filing Tax Return Before Departure
Under Section 145(2):
• Your notice must be accompanied by a return of taxable income covering:
1. The period from the end of your last assessed tax year to the departure date
2. If no prior assessment exists, a return covering all tax years ending on your departure date
✅ This period is treated as a distinct tax year for calculation purposes.
⚖ FBR May Serve Notice Even Without Your Declaration
Under Section 145(3):
• If FBR believes you might leave Pakistan permanently and have not submitted a notice,
• The Commissioner can issue a notice to furnish tax returns within a specified time.
⚠ Ignoring such a notice can trigger recovery actions.
💰 Tax Rates and Provisions Apply
Under Section 145(4):
• Your taxable income will be taxed at applicable rates for the relevant year
• All provisions of the Income Tax Ordinance apply as usual
• No exemptions are provided simply because you are leaving the country
❄ Asset Freeze for Offshore Risk
Under Section 145(5):
• If the Commissioner suspects offshore tax evasion or imminent disposal of assets,
• Any domestic assets you own may be frozen for up to 120 days or until the finalization of recovery proceedings.
• This includes assets beneficially owned, even if held indirectly.
💡 Early compliance is the only way to prevent such freezes.
🧠 Why This Matters
Leaving Pakistan without addressing tax obligations can:
• Trigger asset freezes or seizure
• Lead to recovery actions even while abroad
• Affect your ability to travel or repatriate funds
✅ Quick Checklist Before Leaving Pakistan
✔ Submit a notice to the Commissioner at least 15 days before departure
✔ File all pending tax returns up to the date of departure
✔ Pay outstanding tax or arrange for proper clearance
✔ Ensure there are no ongoing FBR investigations or appeals
✔ Seek professional tax advice for offshore assets
📌 Final Takeaway
For tax year 2026, Section 145 makes it clear: leaving Pakistan permanently does not absolve you from tax liability. Timely notice, filing of returns, and compliance with FBR rules are essential to avoid legal issues and protect your assets.
Pro tip:
Always maintain records of all tax payments and notices before departure to prevent complications with FBR.
Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Tax laws, offshore reporting, and FBR procedures may change. Consult a qualified tax professional for advice tailored to your situation.