I live and work abroad. Do I still have to file an income tax return in Pakistan?

What does the law say?

The Income Tax Ordinance, 2001 does not have a general rule that people living abroad are excused from filing. Instead, section 114(1) lists who must file, and most of that list applies to any “person”, resident or not. Three other provisions then narrow the position for an overseas Pakistani:

• Section 11(6) says a non-resident’s income under each head is computed using “only amounts that are Pakistan-source income”. Your salary in Riyadh or Toronto is therefore not part of your Pakistani taxable income while you are non-resident.
• Section 115(3)(d) says a non-resident person is not required to file “solely by reason” of the property triggers in section 114(1)(b).
• Clause (114A) of Part IV of the Second Schedule switches off two specific provisions, section 114(1)(ae) and the taxpayer registration requirement, for people maintaining an FCVA, FCBVA, NRVA or NRBVA with authorised banks in Pakistan, as long as their Pakistani income is limited to the kinds the clause lists.

Which triggers in section 114 can still catch someone living abroad?

Trigger in section 114(1)	Applies to a non-resident?
(ab) taxable income above the amount not chargeable to tax	Yes, measured on Pakistan-source income only (section 11(6))
(ae) income subject to final taxation	Yes, unless clause (114A) applies
(b)(i) charged to tax in either of the two preceding tax years	Yes
(b)(ii) claims a loss carried forward	Yes
(b)(iii) to (v) owns land of 500 square yards or more, or a flat, in the areas listed	No, excused by section 115(3)(d)
(b)(vi) owns a motor vehicle above 1000 CC	Yes. Section 115(3) covers this sub-clause only for a widow, an orphan below 25 or a disabled person
(b)(vii) has obtained a National Tax Number	Yes, section 115(3) does not mention it
(b)(ix) and (x) chamber or professional body membership, foreign income and assets statement	These apply only to a “resident person”

The rate tables that set the amount “not chargeable to tax” are in Part I of the First Schedule. Which table applies depends on whether your income is mostly salary, so read the schedule for your case rather than relying on one figure.

How does it work in practice?

The first question is whether you are non-resident for the tax year. That turns on section 82, which is covered on our page about the 183-day test and on the page about citizens working abroad. If you are resident, section 11(5) brings your foreign income into the calculation and the analysis below does not hold.

If you are non-resident, work through the table. Many overseas workers find that the NTN trigger is the one that bites: section 114(1)(b)(vii) requires anyone who “has obtained National Tax Number” to file, and nothing in section 115 lifts that for non-residents. The same is true of a car above 1000 CC registered in your name.

Property is different. The section 115(3)(d) carve-out covers the property sub-clauses, but only where property is the sole reason. Rent earned from that property is income, not ownership, so a rented-out house can still lead to a filing duty through the income triggers in clause (ab) or (ae).

Worked example (illustrative figures)

Three people, all non-resident for tax year 2027 (1 July 2026 to 30 June 2027):

1. Bilal, electrician in Sharjah. Owns a 5-marla house in Sialkot, lived in by his parents, no rent. No NTN, no car in Pakistan. His only trigger would be property ownership, which section 115(3)(d) excuses. On the text, no return is required.
2. Sana, nurse in Manchester. Registered for an NTN in 2021 before she moved. No Pakistani income. Section 114(1)(b)(vii) still lists her as a person who has obtained an NTN, so the text requires a return even if it shows nil Pakistani income.
3. Usman, engineer in Doha. Holds an NRVA and earns profit on it, and bought shares on the Pakistan Stock Exchange from NRVA proceeds. No NTN. Clause (114A) switches off section 114(1)(ae) and the taxpayer registration requirement for him, because the profit on his account and any dividends or gains on those shares fall within items (a), (d) and (e) of the clause’s proviso.

What if I also have other Pakistani income?

Clause (114A) stops applying if you have Pakistan-source taxable income outside its list. The list covers profit on the accounts, profit on Government of Pakistan securities bought from their proceeds, capital gain on immovable property bought from FCVA or NRVA proceeds, and gains and dividends on listed securities and mutual funds bought from those proceeds. Rent from a Pakistani property, for example, is not on the list.

What if I do not file when I should?

Section 114(4) lets the Commissioner issue a notice requiring a return. After that notice goes unanswered, section 114B allows the Board to include the person in an income tax general order, with consequences including disabling mobile SIMs and cutting utilities. The foreign travel restriction in section 114B(2)(d) expressly excludes NICOP holders.

Common mistakes

• Thinking foreign residence cancels an NTN-based duty. Section 115(3) does not refer to sub-clause (vii).
• Treating clause (114A) as a blanket exemption. It switches off only section 114(1)(ae) and the taxpayer registration requirement, and only for account holders whose Pakistani income stays within its list.
• Adding foreign salary to the Pakistani return while non-resident. Section 11(6) limits a non-resident’s income to Pakistan-source amounts.
• Assuming the property carve-out covers rent. Section 115(3)(d) is about ownership, not income from the property.

What to check in the official text

Read section 114(1) in full, including the omitted and renumbered clauses, and section 115(3) for the exact sub-clauses it covers. Read clause (114A) of Part IV of the Second Schedule, which was substituted by the Finance Act, 2026, so older descriptions of it may not match. Confirm your residence status under section 82 before relying on any of this.