ISLAMABAD: Pakistan has proposed to amend tax laws to bring wealthy citizens living abroad and evading tax.
The amendment has been proposed through budget 2022/2023, which was presented on June 10, 2022.
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According to budget documents, criteria for the resident person for the purpose of taxation are being modified.
The current regime is being misused by wealthy individuals whereby they are not tax residents of any country therefore it is proposed that any citizen of Pakistan who is not a tax resident of any other country shall be treated as a tax resident of Pakistan.
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Through Finance Bill, 2022, amendment has been proposed to Section 82 of Income Tax Ordinance, 2001.
The amendment proposed to the Section is as follow (amendment in bold):
82. Resident individual. — An individual shall be a resident individual for a tax year if the individual —
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(a) is present in Pakistan for a period of, or periods amounting in aggregate to, one hundred and eighty-three days or more in the tax year; or
(c) is an employee or official of the Federal Government or a Provincial Government posted abroad in the tax year;
“(d) being citizen of Pakistan is not a tax resident of any other country.”
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