On 16 May 2019, the Pakistani Federal Board of Revenue (FBR) posted online an ordinance on the tax amnesty program for a voluntary declaration of undisclosed assets, sales, and expenditures acquired through June 30, 2018.

The Ordinance will apply to undisclosed assets acquired, undisclosed expenditure incurred and undisclosed sales made upto June 30, 2018 and benami assets acquired or held on or before the date of declaration.

However, the scheme will not apply to holders of public office, a public company, any proceeds or assets that are involved in or derived from the commission of a criminal offence, gold and precious stones, bearer prize bonds, bearer securities, shares, certificates, bonds or any other bearer assets and proceedings pending in any court of law (High Court or Supreme Court).

Declaration under this Ordinance shall be chargeable to tax at the following rates:

• All assets, with the exception of domestic immovable properties: 4%
• Domestic immovable properties: 1.5%
• Foreign liquid assets not repatriated: 6%
• Unexplained expenditure: 4%
• Unexplained sales: 2%.

Taxes on undeclared foreign assets or foreign currencies held in Pakistan must be paid in foreign currency. The due date of payment of the tax to be levied under the Regulation is 30 June 2019. Taxes paid after the due date are increased by the additional delay. However, payment must be made by 30 June 2020. Otherwise the declaration is invalid.

Tax payable under the scheme will be increased by a default surcharge at the following rates if paid after 30 June 2019:

• If the tax is paid during the period from 1 July 2019 to 30 September 2019: 10% of the tax amount.
• If the tax is paid during the period from 1 October to 31 December 2019: 20% of the amount.
• If the tax is paid during the period from 1 January 2020 to 31 March 2020: 30% of the amount.
• If the tax is paid during the period from 1 April 2020 to 30 June 2020: 40% of the amount.