ProPropertyNewsUAE Refuses to Disclose Information on Pakistani Residents’ Real Estate Holdings

UAE Refuses to Disclose Information on Pakistani Residents’ Real Estate Holdings

ISLAMABAD: FBR has not yet received any information from the UAE tax authorities on the real estate holdings owned by Pakistanis living in the emirates.

The sources confirmed that Pakistani tax officials are not given information on immovable property. However, the UAE authorities did communicate financial data about foreign Pakistanis, such as bank account information and stock/share/trust information.

Only twice have the Federal Board of Revenue (FBR) and the tax authorities of the United Arab Emirates (UAE) exchanged financial data, including bank accounts of Pakistanis living abroad, the sources added.

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As per the procedure, regarding all incoming and outgoing Exchange of Information on Request (EOIR) and spontaneous Exchange of Information (SEOI), the Directorate General of International Taxes FBR coordinates with the UAE authorities.

The information sought by a foreign jurisdiction through an inward EOIR (details on the tax return, amount of taxes paid, etc.) becomes accessible inside the FBR  or with a third party like banks, an employer, or any other organization under the regulations governing information sharing.

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Usually, the most common types of information were identity information for account owners and beneficial owners, as well as information on income tax returns submitted to foreign jurisdictions.

Besides, the details of taxes paid abroad or residence status, property owned or used, income and expenses, accounting information such as financial accounts, balance sheets, profit and loss accounts, banking information such as bank account balances and transactions, directors and shareholders of corporations, and other types of information is shared.

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It is worth mentioning that the relevant Automatic Exchange of Information (AEOI) Zones have taken the required measures against those individuals who filed income tax returns and reported rental revenue from foreign assets held overseas.

According to the sources, there are hundreds of similar instances of “foreign source immovable property income” that are now being processed in foreign countries including the UK, the USA, Turkey, Spain, Canada, and the UAE.

However, the FBR has used its authority to tax such overseas rental income in Pakistan, and the owners of such properties are eligible to claim a tax credit for taxes paid abroad on their income tax returns.

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