Foreign income: IRIS drops reduced tax rate option
ISLAMABAD: Taxpayers declaring foreign income are facing serious difficulties in filing their income tax returns for tax year 2026, as the Federal Board of Revenue’s (FBR) IRIS portal no longer offers the option to apply reduced tax rates on such income. M. Amayed Ashfaq Tola, President Tola Associates told Business Recorder here on Thursday that the “Attribute” tab, which was available in last…
Islamabad: In a challenging year for taxpayers declaring foreign income, the Federal Board of Revenue’s (FBR) IRIS portal has removed the option to apply reduced tax rates for such income. M. Amayed Ashfaq Tola, President of Tola Associates, revealed this issue on Thursday, stating that the "Attribute" tab available in last year’s return form is now missing from this year’s version on the IRIS portal.
This year, taxpayers are left with only two options when declaring foreign income: treating it as exempt or paying it at the usual rates. Both options fail to accurately reflect the correct treatment of foreign income according to the Avoidance of Double Tax Treaties. Choosing the exempt option may lead to incorrect reporting, while selecting the normal rates results in a higher tax liability than what the relevant tax treaty intends.
Tax experts have called on the FBR to restore the "Attribute" tab on the IRIS portal, enabling taxpayers to file returns accurately.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
