Do I pay the non-ATL rate of 236K tax when I buy property in Pakistan as an overseas Pakistani with a NICOP or POC?

A buyer who is not on the active taxpayers’ list normally pays a far higher rate of advance tax under section 236K of the Income Tax Ordinance, 2001. A special clause in the Second Schedule takes non-resident NICOP and POC holders out of that higher rate. This page reads the law as amended to 30 June 2026, which governs transfers in tax year 2027 (1 July 2026 to 30 June 2027).

What does the law say?

Four provisions work together:

1. Section 236K(1) requires the person registering, recording or attesting a property transfer to collect advance tax from the purchaser “at the rate specified in Division XVIII of Part IV of the First Schedule”.
2. Division XVIII of Part IV of the First Schedule sets that rate at 1.25% of the fair market value of the immovable property.
3. Section 100BA says tax collection for a person not appearing in the active taxpayers’ list “shall be determined in accordance with the rules in the Tenth Schedule”. The second proviso to rule 1 of the Tenth Schedule sets higher banded rates for 236K.
4. Clause (111AC) of Part IV of the Second Schedule says section 100BA and rule 1 of the Tenth Schedule “shall not apply to non-resident individual holding Pakistan Origin Card (POC) or National ID Card for Overseas Pakistanis (NICOP) in respect of transactions on which tax is collectible under section 236C and 236K of the Ordinance”.

Put together: for a non-resident NICOP or POC holder, the Tenth Schedule rates are switched off, and section 236K falls back to the Division XVIII rate.

How big is the difference?

Fair market value	Division XVIII rate (ATL, or clause (111AC) applies)	Tenth Schedule rate (not on ATL)
Up to Rs. 50 million	1.25%	10.5%
Above Rs. 50 million up to Rs. 100 million	1.25%	14.5%
Above Rs. 100 million	1.25%	18.5%

Worked example (illustrative figures)

Tariq lives and works in Toronto, holds a NICOP, spent 40 days in Pakistan in tax year 2027, and is not on the active taxpayers’ list. He buys a house in Islamabad with a fair market value of Rs. 36,000,000.

1. Is he non-resident? At 40 days he does not meet the 183-day test in section 82(a). The other tests in section 82 also have to be checked for his facts.
2. Does clause (111AC) apply? He is a non-resident individual holding a NICOP, and the transaction is one on which tax is collectible under section 236K. On those facts, yes.
3. Rate: Division XVIII, 1.25%.
4. Tax: Rs. 36,000,000 x 1.25% = Rs. 450,000.

Without clause (111AC), the Tenth Schedule rate for a value up to Rs. 50 million would be 10.5%: Rs. 36,000,000 x 10.5% = Rs. 3,780,000.

What if I only hold a CNIC?

Clause (111AC) names two documents: the Pakistan Origin Card and the National ID Card for Overseas Pakistanis. It does not name the Computerized National ID Card. On the words of the clause, a non-resident who holds only a CNIC is not covered by it.

A separate clause, (111AB), says section 100BA and rule 1 of the Tenth Schedule do not apply to a Foreign Currency Value Account, Foreign Currency Business Value Account, Non-Resident Rupee Value Account or Non-Resident Rupee Business Value Account with authorised banks in Pakistan. A footnote records that the Finance Act, 2026 replaced wording that named non-resident POC, NICOP or CNIC holders maintaining such accounts. The clause as it now reads does not say in terms whether it reaches a 236K collection on property paid for from one of these accounts. This page does not resolve that.

What if I become resident?

Clause (111AC) applies only to a “non-resident individual”. Section 82 treats an individual as resident for a tax year if, among other tests, they are present in Pakistan for 183 days or more in that year, or, being a citizen, are not present in any other country for more than 182 days during the tax year or are not a resident taxpayer of any other country. A NICOP holder who is resident in the year of purchase is outside clause (111AC).

Common mistakes

• Assuming every overseas Pakistani is covered. The clause names POC and NICOP holders who are non-resident, not CNIC-only holders.
• Assuming the clause removes 236K altogether. It removes only the non-ATL uplift. Division XVIII still applies at 1.25%.
• Applying the old banded ATL rates. The Finance Act, 2026 replaced the 1.5%, 2% and 2.5% bands with a flat 1.25% from 1 July 2026.
• Forgetting the seller’s side. Clause (111AC) also covers 236C, which is collected from a seller. That is a separate tax.

What to check in the official text

Read section 236K, Division XVIII of Part IV of the First Schedule, section 100BA, rule 1 of the Tenth Schedule, section 82, and clauses (111AB) and (111AC) of Part IV of the Second Schedule in the official PDF. The Ordinance does not say what document the registering authority will accept as proof of non-resident status; that is an administrative matter outside this corpus. Provincial stamp duty and registration fees are separate provincial levies and are not covered here.