Income From Salary Chapter- 07
A credit or exemption shall be allowed
only if the foreign income tax is paid
within 2 years after the end of the tax
year in which the foreign income was
derived by the resident taxpayer shall
be taxable in Pakistan.
b. Non-resident
individual
Not taxable [Section 11(6)]c. Short term resident[For all foreign
source income][Section 50]
An individual shall be exempt in
respect of his foreign-source income
which is not brought / received in
Pakistan if he is resident only by
reason of his employment and he is
present in Pakistan for not exceeding
3 years.
d. Returning expatriate[Citizen of Pakistan
coming back in
Pakistan][For all foreign
source income][Section 51]
If an individual citizen of Pakistan
(returning expatriate) is resident in the
current tax year but was non-resident
in the 4 preceding tax years, his
foreign-source income shall be
exempt in current tax year and in the
following tax year.e. Individual leaving
Pakistan during the
year and remains
abroad during that tax
year[Citizen of Pakistan
leaves Pakistan]Exemption for salary income [Section
51]TOP CHART OF EXEMPTIONS UNDER THE INCOME TAX ORDINANCE, 20 01
SR. PARTICULARS
1 Exemptions under various sections of the Income Tax Ordinance, 2001^
2 Exemptions from total income under Part I of 2ND^ Schedule^
3 Reduction in tax rates under Part II of 2nd^ Schedule^
4 Reduction in tax liability under Part III of 2 nd ScheduleEXEMPTIONS UNDER VARIOUS SECTONS OF THE INCOME TAX ORDINANCE, 2001
SR. SECTION PARTICULARS OF EXEMPTION^
1 42 Diplomatic and United Nations exemptions
2 43 Foreign government officials
3 44 Exemptions under international agreements^
4 45 Presidents honours^
5 47 Scholarships
6 50 Foreign source income of short term resident individuals^
7 51 Foreign-source income of returning expatriates^