Moving back to Pakistan from the Gulf: tax and your money

When you count as resident

Under section 82, 183 days or more in Pakistan in a tax year makes you resident for it.

Section 82(d) adds a citizen who "is not present in any other country for more than one hundred and eighty-two days during the tax year or who is not a resident taxpayer of any other country". Gulf states charge no personal income tax. Ask an adviser how this part reads for you while you work in the Gulf.

The two-year exemption for returning citizens

Section 51(1) exempts the foreign-source income of a returning citizen. It applies if you were not resident in any of the 4 tax years before. The exemption covers the tax year you become resident and the next one.

Section 51(2) covers a citizen who leaves during a tax year and stays abroad for the rest of it. Their salary earned outside Pakistan is exempt.

The Ordinance defines "foreign-source income" separately. Before you rely on section 51, see a tax adviser. Ask whether your end of service money falls under it, and which tax year it lands in.

Sending a large sum: the Rs 5 million rule

Section 111(4) gives a limit for foreign exchange sent through normal banking channels. Up to Rs 5 million in a tax year, the charge on unexplained income does not apply. The bank must change it into rupees and give you a certificate.

Exchange companies and money transfer operators count as banking channels. Above Rs 5 million in a tax year, that rule does not cover you. Ask an adviser how to send the rest, and keep every certificate.

Roshan Digital Account and Naya Pakistan Certificates

The State Bank of Pakistan runs the Roshan Digital Account for non-resident Pakistanis. Once you are back and resident, ask your bank what happens to it.

Naya Pakistan Certificates are government instruments in USD, PKR, Euro, SAR, AED and GBP, run by the State Bank.

Your EOBI pension

EOBI pays an old-age pension from age 60 for men and 55 for women. Ask EOBI whether your years in the Gulf can count. Ask too whether you can contribute while you are away.

Sending it from the Gulf

These services send money online from each Gulf country, paid for in that country:

• From the UAE: Western Union and Remitly.
• From Saudi Arabia: Western Union and STC Bank.
• From Kuwait: Western Union, LuLu Money, BEC Pay and Al Mulla Exchange.
• From Qatar: Western Union.
• From Oman: ask your bank or an exchange house for a quote.
• From Bahrain: Western Union.

Ask each for a quote to Pakistan for the same amount, and compare what arrives.