The Federal Board of Revenue (FBR) of Pakistan has introduced new rules to simplify tax processes for non-resident Pakistanis. These changes apply to individuals holding a Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP). Here is an overview of how to create a withholding tax challan under sections 236C and 236K of the Income Tax Ordinance, 2001.

Who is Eligible for Tax Exemption?

Non-resident individuals must hold a POC or NICOP. Additionally, individuals who are not on the Active Taxpayers List (ATL) can still qualify for exemptions.

The Process of Creating a Withholding Taxes Challan

1. Upload Details: Non-resident taxpayers need to upload their POC or NICOP information on the FBR portal.
2. Generate PSID: After uploading, the system generates a provisional Payment Slip ID (PSID). The PSID is then sent to the Chief Commissioner Inland Revenue (CCIR) for review.
3. Verification and Approval: The CCIR reviews the details and confirms the non-resident status. The CCIR typically grants approval within one business day.

Benefits of the New Rules

Exemption from Higher Tax Rates: Non-residents holding a POC or NICOP qualify for exemptions under sections 236C and 236K for specific transactions. Simplified Claim Process: The new rules make it easier for non-resident Pakistanis to claim exemptions, improving convenience and compliance. If you have any issue Creation of Withholding Taxes Challan u/s 236C & 236K feel free to contact us