Foreign source salary of resident individuals
Section 102 – Foreign Source Salary of Resident Individuals
Tax-Free Foreign Salary? Here’s What You Should Know
If you are a resident of Pakistan and earn salary from a foreign country, it may be exempt from tax in Pakistan under Section 102 of the Income Tax Ordinance, 2001.
Exempt from tax in Pakistan if:
- Tax has already been paid in the country where you work, OR
- Your foreign employer deducted tax and deposited it with that country’s tax authority.
Taxable in Pakistan if:
No tax was paid or deducted abroad on the foreign salary.
