Employers hiring foreign domestic workers will face Rs200,000 adjustable advance tax when obtaining or renewing domestic aide visas under Section 231C.

The Federal Board of Revenue (FBR) has prescribed an adjustable advance tax of Rs200,000 on employers hiring foreign nationals as domestic workers for Tax Year 2027.

According to the Income Tax Ordinance, 2001, updated up to June 30, 2026, Section 231C requires tax collection when a domestic aide visa is issued or renewed for a foreign national working as a domestic worker in Pakistan.

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Under the provision, the authority responsible for issuing or renewing the domestic aide visa must collect Rs200,000 from the employment agency, sponsor or individual hiring the foreign domestic worker.

The tax applies at the time of issuance or renewal of the visa, placing the payment responsibility on the agency, sponsor or employer using the services of the foreign national.

Section 231C further clarifies that the amount collected, or legally collectible, will be treated as adjustable advance tax for the relevant tax year.

The payment will be adjustable against the income tax liability of the employment agency, sponsor or individual employing the foreign domestic worker.

The provision forms part of the FBR’s withholding and advance tax framework under the Income Tax Ordinance for Tax Year 2027, covering July 1, 2026, to June 30, 2027.

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