ISLAMABAD: The Federal Board of Revenue (FBR) has notified Capital Value Tax (CVT) Rules 2022 for implementation on movable and immovable properties of Pakistanis in foreign countries.

The federal government in the Budget 2022, introduced CVT at the rate of one per cent on the value of Pakistanis’ movable and immovable properties outside Pakistan. The tax will apply to properties valued over Rs100 million. The value will be determined against the exchange rate on June 30, 2022.

As per the rules, those liable to pay the CVT will file the electronic declaration on FBR’s portal IRIS. The value of assets will be converted into rupees as per ready transactions exchange rates for mark-to-market revaluation notified by the State Bank applicable for the last day of the tax year. The tax will be paid by way of credit to the federal government through a computerised payment receipt when the income tax returns are due for payment of tax on foreign movable assets, as set out in Form ‘C-l’ and Form ‘C-2’.

All sums of capital value tax collected under section 8 of the Finance Act, 2022, will be paid by remittance into the government treasury or in the authorised branches of the SBP or the National Bank of Pakistan.

The tax authorities are empowered to collect the CVT from those who either did not pay due tax or short paid along with default surcharge.

Any person dissatisfied with any order passed by the commissioner of income tax or an officer of Inland Revenue under this section may prefer an appeal before the Commissioner (Appeals) against the order as provided in section 127 of the Ordinance and all provisions of Part III of Chapter.

Published in Dawn, September 30th, 2022