8 of 132018-06-30

Acts (general), as published 30 June 2018

This is the Acts (general) as it stood on 30 June 2018. It runs to 12 pages and contains 15 sections, with 0 amendment footnotes.

What this document is

Published by the Federal Board of Revenue as part of the Acts (general) collection. A consolidation of this kind folds every amendment made up to its cover date into the text, so it shows the law as it stood on 30 June 2018 rather than as originally enacted.

The date above was taken from the file name rather than a consolidation statement on the cover, so treat it as approximate.

The shape of this version

The operative text holds roughly 2,141 words across 15 sections.

What changed since the previous version

Against the version published 30 June 2016, this one has 14 new sections and 1 that no longer appear.

New in this version

section 2, Definitions
section 4, Application
section 5, Declaration and repatriation of assets held outside Pakistan
section 6, Period of applicability
section 7, Charge of tax
section 8, Payment of tax
section 9, Currency and rate of conversion
section 10, Mode and manner
section 11, Foreign Assets (Declaration and Repatriation) Act, 2018
section 12, Investment in Government securities
section 13, Confidentiality
section 14, Declaration not admissible in evidence
and 2 more

No longer present

These appeared in the previous version and not in this one. That usually means omission by a later law, though it can also mean a heading was formatted in a way the extraction did not recognise.

section 120, Explanation

The source file


File name	`20186131562020770ForeignAssets(DeclarationandRepatriation)Act,2018.pdf`
Pages	12
Size	0.86 MB
Text extraction	markitdown
Extraction confidence	high
Position in this collection	5 of 13

SHA-256 of the source PDF:

73d5fd8a4eee209e98c960e141051be8051a383e8f605917d38432b6917bc0d1

Checking that value against the file you download confirms it is the same document these figures came from.

A note on these figures

Counts here are produced by software reading the PDF, not compiled by hand. The same method is applied to every document, which makes comparisons between versions meaningful, but a section with unusual formatting can be missed. Treat them as close measurements and the official document as the authority.

This is information, not legal or tax advice. Qanoon Digest is independent and not affiliated with the Federal Board of Revenue or the Government of Pakistan.

The full text of this version

All 15 sections as they appear in this document, reproduced from the source PDF. Amendment footnotes follow at the end.

1. Short title and commencement

(1)This Act may be called the Foreign Assets (Declaration and Repatriation) Act, 2018.

(2) It shall come into force at once.

2. Definitions

(1) In this Act, unless there is anything repugnant in the subject or context,-

(a) -cost of acquisition of the mortgaged asset‖ means the sum of mortgaged payments and other mortgaged cost of acquisition;

(b) -court of law‖ means an Appellate Tribunal, a High Court or Supreme Court of Pakistan;

(d) -fair market value‖ means price of foreign asset determined and declared by a declarant himself, but in no case is less than the cost of acquisition of the foreign assets;

(e) -foreign assets‖ means any movable or immovable assets held outside Pakistan and includes real estate, mortgaged assets, stock and shares, bank accounts, bullion, cash, jewels, paintings, accounts and loan receivables, beneficial ownership or beneficial interests or contribution in offshore entities and trusts;

(f) -government security‖ means a bond, note or other debt instrument issued by the Federal Government with a promise of repayment upon maturity;

(g) -liquid assets‖ means cash or an asset that can be readily converted into cash with a minimal impact on the assets’ value and includes bank notes, marketable securities, stocks, promissory notes, government bonds, deposit certificates and other similar instruments; and

(h) “holder of public office” means a person who is or has been, during the preceding ten years,-

(i) the President of the Islamic Republic of Pakistan or the Governor of a Province;

(ii) the Prime Minister, Chairman Senate, Speaker of the National Assembly, Deputy Chairman Senate, Deputy Speaker National Assembly, Federal Minister, Minister of

State, Attorney-General for Pakistan and other Law Officers appointed under the Central Law Officers Ordinance, 1970 (VII of 1970), Adviser or Consultant or Special Assistant to the Prime Minister and holds or has held a post or office with the rank or status of a Federal Minister or Minister of State, Federal Parliamentary Secretary, Member of Parliament, Auditor-General of Pakistan, Political Secretary;

(iii) the Chief Minister, Speaker Provincial Assembly, Deputy Speaker Provincial Assembly, Provincial Minister, Adviser or Consultant or Special Assistant to the Chief Minister and who holds or has held a post or office with the rank or status of a Provincial Minister, Provincial Parliamentary Secretary, Member of the Provincial Assembly, Advocate-General for a Province including Additional Advocate-General and Assistant Advocate-General, Political Secretary;

(iv) the Chief Justice or, as the case may be, a Judge of the Supreme Court, Federal Shariat Court, a High Court or a Judicial Officer whether exercising judicial or other functions or Chairman or member of a Law Commission, Chairman or Member of the Council of Islamic Ideology;

(v) holding an office or post in the service of Pakistan or any service in connection with the affairs of the Federation or of a Province or of a local council constituted under any

Federal or Provincial law relating to the constitution of local councils, co-operative societies or in the management of corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organization established, controlled or administered by or under the Federal Government or a Provincial Government or a civilian employee of the Armed Forces of Pakistan: Provided that a member of the Board, not actively engaged in the business and day-today affairs of the said corporations, banks, financial institutions, firms, concerns, undertakings or any other institution or organization shall not be treated as holder of public office under this sub-clause;

(vi) the Chairman or Mayor or Vice Chairman or Deputy Mayor of a zila council, a municipal committee, a municipal corporation or a metropolitan corporation constituted under any Federal or Provincial law relating to local councils; Explanation.- For the purpose of this sub-clause the expressions “Chairman” and “Vice Chairman” shall include “Mayor” and “Deputy Mayor” as the case may be, and the respective councilors therein; and

(vii) a District Nazim or District NaibNazim, Tehsil Nazim or Tehsil NaibNazim or UnionNazim or Union NaibNazim;

(2) All other words and expressions used but not defined in this Act shall have the same meaning assigned to them under the Income Tax Ordinance, 2001 (XLIX of 2001) and the rules made thereunder.

(3) Act to override other laws.-The provisions of this Act shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.

4. Application

(1) The provisions of this Act shall apply to-

(a) all citizens of Pakistan wherever they may be, except holders of public office, their spouses and dependent children; and

(b) all foreign assets held by the persons mentioned in clause (a) and tax paid on the value of such assets under section 8, except where proceedings are pending in any court of law in respect of the foreign assets.

(2) The provisions of this Act shall not apply to any proceeds or assets that are involved in or derived from the commission of a criminal offence.

5. Declaration and repatriation of assets held outside Pakistan

(1) Subject to the provisions of this Act, any person may make to the Federal Board of Revenue, by the due date specified in section 6, a declaration in respect of foreign assets acquired before the tenth day of April, 2018.

(2) The value of a foreign asset shall be fair market value as defined in section 2.

(3) The declaration of value and tax paid in respect of the foreign assets shall be in the manner as set out in Form A of the Schedule to this Act.

(4) The description of the foreign assets declared under sub-section (1) and (3) shall be in the manner as set out in Form B of the Schedule to this Act.

(5) A person declaring foreign assets under sub-section (1), may by the due date as specified in section 6 also repatriate the said foreign assets in Pakistan.

(6) The declaration of foreign assets shall be made in the manner as set out in Form A of the Schedule to this Act, electronically on Federal Board of Revenue’s web portal and shall be valid only if it is accompanied by the evidence of payment of tax. The declarant may be required to provide additional item-wise details of such assets while filing declaration on Federal Board of Revenue’s web portal.

6. Period of applicability

The declaration and repatriation under section 5 shall be made on or after the tenth day of April, 2018 but on or before the thirtieth day of June, 2018.

7. Charge of tax

The foreign assets declared and repatriated into Pakistan within the due date shall be chargeable to tax at the rates specified in the Table below, namely:- TABLE S.No. Foreign assets Rate (as a percentage

assets) Rupees

8. Payment of tax

(1) The due date for the payment of tax chargeable under section 7 shall be the date on which declaration is made under section 6.

(2) No tax shall be payable by the declarant under any law for the time being in force including the Income Tax Ordinance, 2001 (XLIX of 2001) where tax has been paid under sub-section (1) in respect of the foreign assets declared under section 5.

9. Currency and rate of conversion

(1) The value of a foreign asset under sub-section (2) of section 5 shall be in Rupees.

(2) The tax payable under section 8 shall be paid in United States dollars as specified in Form A of the Schedule to this Act.

(3) The value in Rupees under sub-section (1) shall be converted into United States dollars at the State Bank of Pakistan’s rate applying between the United States dollar and the Rupee on the date the declaration is made under section 6 and tax is paid under section 8.

10. Mode and manner

The State Bank of Pakistan (SBP) shall notify the mode and manner of-

(a) repatriation of liquid assets in Pakistan;

(b) deposit of tax in US dollars in SBP; and

11. Foreign Assets (Declaration and Repatriation) Act, 2018

There is hereby enacted Foreign Assets (Declaration and Repatriation) Act, 2018, in the manner as follows:- AN ACT to provide for declaration and repatriation of assets and income held outside Pakistan WHEREAS there is a large scale non-reporting and under-reporting of assets and income held outside Pakistan; AND WHEREAS it is expedient to provide for declaration and repatriation of assets and income held outside Pakistan for the purposes hereinafter appearing; It is hereby enacted as follows:-

(1) Where a declarant has paid tax under section 8 in respect of foreign assets declared under section 5, the declarant shall be entitled to incorporate in his books of account such foreign assets.

(2) For the purpose of the Income Tax Ordinance, 2001 (XLIX of 2001), the cost of acquisition of foreign assets and date of acquisition shall be deemed to be the value declared by the declarant and the date on which declaration has been made by the declarant, respectively.

12. Investment in Government securities

Investment in Government securities under S.No. 3 of the Table in section 7 shall be made in accordance with a scheme to be introduced by the Government of Pakistan

through the State Bank of Pakistan, by notification in the official Gazette, specifying periodic rate of return, the period for the rate of return and period of maturity. There is hereby enacted Voluntary Declaration of Domestic Assets Act, 2018, in the manner as follows:- AN

13. Confidentiality

(1) Notwithstanding the provisions of sub- section (3) of section 216 of the Income Tax Ordinance, 2001 (XLIX of 2001), the Right of Access to Information Act, 2017 (XXXIV of 2017) and any other law for the time being in force, particulars of any person making a declaration under this Act or any information received in any declaration made under this Act shall be confidential.

(2) A person who discloses any particulars in contravention of sub- section (1) shall commit an offence punishable on conviction with a fine of not less than five hundred thousand Rupees but not exceeding one million Rupees or imprisonment for a term not exceeding one year or with both.

14. Declaration not admissible in evidence

Notwithstanding anything contained in any other law for the time being in force, nothing contained in any declaration made under section 5 shall be admissible in evidence against the declarant for the purpose of any proceedings relating to imposition of penalty or for the purposes of prosecution under any law including Income Tax Ordinance, 2001 (XLIX of 2001).

15. Removal of difficulty

If any difficulty arises in giving effect to the provisions of this Act, the Federal Government may make such order in writing, as is not inconsistent with the provisions of this Act, for removal of such

difficulty.

16. Misrepresentation

Notwithstanding anything contained in this Act, where a declaration has been made by misrepresentation or suppression of facts, such declaration shall be void and shall be deemed never to have been made under this Act. Schedule Form A DECLARATION UNDER SECTION 5 FULL NAME

ADDRESS

TELEPHONE NUMBER: Email: FOREIGN ASSETS repatriated Pakistan

Government securities Total tax in Rupees(1+2+3+4) Total tax in US Dollars *CNIC includes NICOP or any other identification number issued by National Database and Registration Authority. Form B DESCRIPTION OF ASSETS [see section 5(4)] A. Liquid assets not repatriated 1. Foreign currency 2. Other liquid assets (securities, stocks, promissory notes, Government bonds, deposit certificates and other similar instruments, etc.) 1. 2.

1. 1. 1. B. IMMOVABLE PROPERTY(Jurisdiction, address and size) 1. 2. 3. 4. 5. 6. 7. VERIFICATION I, the undersigned, solemnly declare that to the best of my knowledge and belief-

(a) the information given in this declaration is correct and complete; and

(b) the value of foreign assets has truly been declared. I, further declare that I am competent to make this declaration and verify it in my own name. Date __________ Signature___________ Name _________ ___