The Federal Board of Revenue (FBR) has clarified the tax treatment of Pakistan Stock Exchange (PSX) investments made through Roshan Digital Accounts (RDA) by non-resident Pakistanis.
According to FBR, a non-resident holding an RDA does not need to file an income tax return for RDA investments and is not subject to non-filer tax rates.
However, where PSX investments are made from profits received through the RDA, tax on PSX capital gains and dividends will be deducted at filer rates.
FBR also clarified that repatriation of funds abroad through the RDA is not subject to tax. Income earned as profit on debt in the RDA is exempt, and therefore non-residents are not required to file an income tax return on account of that exempt RDA income.
The clarification is aimed at addressing queries regarding the tax implications of investing in PSX through RDA and subsequently repatriating funds.
https://x.com/FBRSpokesperson/status/2103074903880765505?s=20
