Reported by: Ch. Muhammad Natiq
According to the Finance Bill 2022-23, non-resident Pakistan businessmen would now be required to file their income tax returns irrespective of their period of stay in Pakistan and also pay the due amount of taxes to become tax resident individuals.
Through the Finance Act, 2019, the definition of a resident individual was broadened to include an individual who stays in Pakistan for at least 120 days during the tax year and who was also present in Pakistan for an aggregate of 365 days or more during the preceding 4 years.
The above-referred criterion for determining the residential status of an individual was withdrawn through the Act. This means that an individual’s residential status was only be determined on the sole basis of his physical stay in Pakistan for at least 183 days during that particular tax year.