The tax authorities of the United Arab Emirates (UAE) have shared financial information about the bank accounts of overseas Pakistanis with the Federal Board of Revenue (FBR) only twice.
Sources told ProPakistani that the UAE tax authorities do not share information about the real estate owned by overseas Pakistani with the FBR. The property details are not shared with the Pakistani tax authorities. However, financial information like bank account details, stocks/shares/trusts of overseas Pakistanis are shared by the UAE authorities.
So far, the authorities of the UAE have shared information about the financial transactions of overseas Pakistanis only twice.
The Directorate General of International Taxes FBR is coordinating with the UAE authorities regarding all incoming and outgoing Exchange of Information on Request (EOIR) and spontaneous Exchange of Information (SEOI).
It is worth mentioning that the concerned Automatic Exchange of Information (AEOI) Zones have taken necessary action against the income tax return filers, who declared rental income from foreign properties held abroad.
There are hundreds of such cases of “foreign source immovable property income” in foreign jurisdictions such as the UK, the US, Turkey, Spain, Canada, and the UAE which are under process, the sources said.
However, the FBR has exercised its right of taxation of such foreign rental income in Pakistan and the owners of such properties are entitled to take a tax credit of tax paid in the foreign jurisdiction in their income tax returns.
