Voluntary Declaration of Domestic Assets Act, 2018

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THE VOLUNTARY DECLARATION OF DOMESTIC ASSETS 
ACT, 2018 
 
 
 
 
 
 
CONTENTS 
 
1.  Short title and commencement 
2.  Definitions  
3.  Act to override other laws  
4.  Application 
5.  Declaration of domestic assets in Pakistan 
6.  Period of applicability  
7.  Charge of tax 
8.  Payment of tax 
9.   Incorporation in books of account  
10.  Valuation 
11.  Confidentiality  
12.  Declaration not admissible in evidence  
13.  Removal of difficulty 
14.  Misrepresentation  
 
Schedule 
 
 
 
 
 
 
 
 

 
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THE VOLUNTARY DECLARATION OF DOMESTIC ASSETS ACT, 2018 
 
1ACT No. XXX of 2018 
 
[22 May, 2018] 
AN 
 
ACT 
 
to provide for voluntary declaration of domestic assets in Pakistan 
 WHEREAS there is a large scale non-reporting and under-reporting of assets held in Pakistan; 
 AND WHEREAS it is expedient to provide for declaration of such assets for the purposes 
hereinafter appearing; 
 It is hereby enacted as follows:— 
 1. Short title and commencement.—(1) This Act may be called the Voluntary Declaration 
of Domestic Assets Act, 2018. 
 (2) It shall come into force at once.  
  
 2. Definitions .—(1) In this Act, unless there is anything repugnant in the  subject or 
context,— 
(a) “declarant” means a person making a declaration under section 5;  
(b) “court of  law ” means  an  Appellate Tribunal,  a  High  Court or  Supreme 
Court of Pakistan; 
(c)  “domestic assets” means assets of every kind other than foreign  assets under 
Foreign Assets (Declaration and Repatriation) Act, 2018; 
(d)  “holder of public office ” means a person who is or has been, during  the 
preceding ten years,— 
(i)  the President of the Islamic Republic of Pakistan or the Governor of 
a Province; 
(ii) the Prime Minister, Chairman Senate, Speaker of the National 
Assembly, Deputy Chairman Senate, Deputy Speaker National 
Assembly, Federal Minister, Minister of  
State, Attorney-General for Pakistan and other Law Officers  
appointed under the Central Law Officers Ordinance, 1970  
(VII of 1970), Adviser or Consultant or Special Assistant to  
the Prime Minister and holds or has held a post or office with  
the rank or status of a Federal Minister or Minister of State,  
Federal Parliamentary Secretary, Member of Parliament,  
Auditor-General of Pakistan, Political Secretary; 
 ________________________________________________________________________________ 
 1This Act enacted via the Finance Act, 2018, s.12. 
 
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(iii)  the Chief Minister, Speaker Provincial Assembly, Deputy Speaker 
Provincial Assembly, Provincial Minister, Adviser or  
Consultant or Special Assistant to the Chief Minister and  
who holds or has held a post or office with the rank or status  
of a Provincial Minister, Provincial Parliamentary Sec retary,  
Member of the Provincial Assembly, Advocate -General for a  
Province   including   Additional   Advocate -General   and  
Assistant Advocate-General, Political Secretary; 
(iv)  the Chief Justice or, as the case may be, a Judge of the  Supreme 
Court, Federal Shariat Court, a High Court or a Judicial Officer 
whether exercising judicial or other functions or Chairman or member 
of a Law Commission, Chairman or Member of the Council of Islamic 
Ideology; 
(v) holding an office or post,  in the  service of Pakistan or any  service in 
connection with the affairs of the Federation or of  a  Province  or  of  
a  local  council  constituted  under  any  Federal or Provincial law 
relating to the constitution of local councils, co-operative societies or 
in the management of corporations, banks, financial  institutions, 
firms,  concerns,  undertakings   or   any   other   institution   or   
organization established,  controlled  or  administered  by  or  under  
the Federal Government or a Provincial Government or a civilian  
employee of the Armed Forces of Pakistan: 
  Provided  that  a  member  of  the  Board,  not actively  engaged  
in  the  business  and  day -today affairs of  the  said  corporations,  
banks,  financial  institutions, firms, concerns, undertakings or any other 
institution  or  organization  shall  not  be  treated  as  holder of public 
office under this sub-clause; 
(vi) the Chairman or Mayor or Vice Chairman or Deputy Mayor  of a zila  
council,  a  municipal  committee,  a  municipal  corporation or a 
metropolitan corporation constituted under  any Federal or Provincial 
law relating to local councils; 
 Explanation .—For the purpose of this sub -clause the  
expressions “Chairman” and “Vice Chairman” shall include “Mayor” 
and “Deputy Mayor” as the case may be, and the respective councilors 
therein; and 
(vii)  a District Nazim or District NaibNazim, Tehsil Nazim or Tehsil 
Naib Nazim or UnionNazim or Union Naib Nazim. 
(e) “undisclosed asset ” in relation to an immovable  property includes  an 
 immovable property the value of which has been under-reported or 
 understated; 
  
 (2) All other words and expressions used but not defined in the Act shall have the same 
meaning assigned to them under the Income Tax Ordinance, 2001 (XLIX of 2001) and the rules 
made thereunder. 
 
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 3. Act to override other laws .—The provisions of this Act shall have effect  
notwithstanding anything to the contrary contained in any other law for the time  
being in force. 
 
 4. Application.— (1) The provisions of this Act shall apply to— 
(a) every company, association of persons and all citizens of Pakistan  wherever  
they  may  be,  except  holders  of  public  office,  their spouses and dependent 
children; and 
 
(b)  undisclosed income and do mestic assets held by the persons  mentioned in 
clause (in Pakistan, except where proceedings are pending in any court of law 
in respect of the undisclosed income or domestic assets. 
 
(2) The provisions of this Act shall not apply to any proceeds or assets that are involved in or 
derived from the commission of a criminal offence. 
 5. Declaration  of  domestic  assets  in  Pakistan. —(1)Subject  to  the  provisions of this 
Act, any person may make, to the Federal Board of Revenue by the due date specified in section 6, 
a declaration in respect of undisclosed income and domestic assets acquired before the tenth day of 
April, 2018. 
 (2) The value of a domestic asset shall be as specified in section 10.  
 (3) The description, value and  tax paid in respect of the undisclosed  income and domestic 
assets declared in sub-section (1) shall be in the manner as set out in Form A of the Schedule to this 
Act. 
 (4) The declaration of undisclosed income and domestic assets shall be made in the manner 
as set out in Form A of the Schedule to this Act, electronically on Federal Board of Revenue’s web 
portal and shall be valid only if it is accompanied by the evidence of payment of tax. The declarant 
may be required to provide additional item-wise details of such income and assets while filing 
declaration on Federal Board of Revenue’s web portal. 
 6. Period of applicability.—The declaration under section 5 shall be made on or after the 
tenth day of April, 2018 but on or before the thirtieth day of June, 2018. 
 7. Charge of tax.— The domestic assets declared within the due date shall be chargeable to 
tax at the rates specified in the Table below on the value of assets as determined under section 10, 
namely:— 
TABLE 
 
S.No. Assets Rate (as a percentage of   the value 
of the asset) 
asset) (1) (2) (3) 
1. Foreign currency held in a foreign  
currency account in Pakistan as on  the 31 st 
March, 2018 and encashed  in equivalent 
Rupees. 
 
 
 
 
 
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Foreign currency held in a foreign  
currency account in Pakistan as  on the 31st  
March, 2018   which   is  invested in 
Government securities upto 5   years   in   
US   dollars denominated    bonds    with    
six-monthly profit payment in equivalent 
Rupees (rate  of  return  3%)  and  payable  
on  maturity  in  equivalent  Rupees. 
 
2% 
2. Other assets. 5% 
 
 8. Payment of tax.— (1) The due date for payment of the tax chargeable under section 7 shall 
be the date on which declaration is made under section 6. 
 (2) No tax shall be payable by the declarant under any law for the time being in force including 
the Income Tax Ordinance, 2001 (XLIX of 2001) declared where tax has been paid under sub -section 
(1) in respect of the  undisclosed income and domestic assets declared under section 5. 
 9.  Incorporation in books of account.— (1) Where a declarant has paid tax under section 
8 in respect of undisclosed income and domestic assets declared under section 5, the declarant 
shall be entitled to incorporate in his books of account such undisclosed income and domestic assets. 
 (2) For the purpose of the Income Tax Ordinance, 2001(XLIX of  2001), the cost of  
acquisition of domestic assets and date of acquisition  shall be deemed to be the value under sub -
section (2) of section 5 and  the  date  on  which  declaration  has  been  made  by  the  declarant, 
respectively.— 
 10. Valuation.— For the purpose of this Act, the valuation of assets declared shall be made 
in the following manner, namely:— 
 
S.No. Undisclosed income and  
domestic assets 
Value for the purpose of section 5(2) 
(1) (2) (3) 
1. Undisclosed income. As declared. 
2. Open plots and land. Cost of acquisition or FBR rates , whichever is higher. 
3. Super structure. Rs 400 per square feet. 
4. Apartments and flats. Cost   of   acquisition   or   Provincial  stamp   duty   
rates,   whichever   is higher. 
5. Imported motor vehicles. A-B 
A= CIF value plus the amount of all  charges,  customs-
duty,  sales  tax, levies, octroi, fees and other duties and 
taxes leviable thereon and the  costs incurred till their 
registration. 
B=  a sum equal to 10% of the said  value for each 
successive year upto  a maximum of five years. 
 
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6. Motor vehicles purchased from a 
manufacturer or assembler  or  
dealer  in 
Pakistan. 
A-B 
A= The price paid by the purchaser,  including the 
amount of all charges,  customs duty, sales tax and 
other taxes,  levies,  octroi,  fees  and  all  other   duties   
and   taxes   leviable thereon and the costs incurred till 
their registration. 
B= a sum equal to 10% of the said  value for each 
successive year upto  a maximum of five years. 
7. Used motor vehicles purchased 
locally. 
Value  determined  in  the  manner  specified in S.N. 5 
or 6, as the case may be, as reduced by an amount equal   
to 10%   for   every   year following the year in which 
it was imported   or   purchased   from   a manufacturer. 
8. Securities and shares traded on 
stock exchange. 
Day-end   price   of   the   share   or  security quoted on 
registered stock exchange as on the 9th April, 2018 and 
where no day -end price of such  share or security is 
quoted on stock exchange on the 9 th April, 2018 day -
end price of the share or security  quoted on a date 
nearest to  the 9 th April, 2018. 
9. Securities and shares not traded on 
stock exchange. 
Break-up   value   or   face   value, whichever is higher. 
Breakup value  shall be the sum of paid -up capital,  
reserves and balance as per profit  and loss account as 
reduced by the  value   of   preference   shares and  
divided by the amount of the paid up  ordinary share 
capital. 
10. National saving schemes, postal 
certificates, bonds, securities and 
other similar   investments   in  
capital instruments not traded or 
quoted on stock exchange. 
 
 
Face value. 
11. Gold. Rupees 4000 per gram. 
12. Other   precious   stones  
and metals. 
Market rate as on the 9 th April, 2018  or cost of 
acquisition, whichever is higher. 
13. Stock-in-trade. Market rate as on the 9th April, 2018. 
14. Plant and machinery. Actual  cost  of  acquisition  with  no  depreciation. 
15. Accounts receivable.  
Actual cost of acquisition. 
16. Other assets. 
17. Prize  bonds,  cash  and  bank 
accounts including  
foreign currency 
accounts. 
For bank accounts balance as on 9th April, 2018 and face 
value for other assets. 
 
 
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 11. Confidentiality .— (1) Notwithstanding the provisions of  sub -section (3) of section 216 
of the Income Tax Ordinance, 2001 (XLIX of 2001), the Right of Access to Information Act, 2017 
(XXXIV of 2017) and any other law for the time  being in force, particulars of any person making a 
declaration under this Act or  any information received in any declaration made under this Act 
shall be confidential. 
 
 (2) A person who discloses any particulars in contravention of sub -section (1) shall commit 
an offence punishable on conviction with a fine of not less than five hundred thousand Rupee s but 
not exceeding one million Rupees or imprisonment for a term not exceeding one year or with both. 
 12. Declaration not admissible in evidence .— Notwithstanding anything  contained in any 
other law for the time being in force, nothing contained in any declaration made under section 5 
shall be admissible in evidence against the declarant for the purpose of any proceedings relating to  
imposition of penalty or for the purposes of prosecution under any law including Income Tax  
Ordinance, 2001 (XLIX of 2001). 
 13. Removal of difficulty .—If any difficulty arises in giving effect to the  provisions of 
this Act, the Federal Government may make such order in writing, as is not inconsistent with the 
provisions of this Act, for removal of such difficulty. 
 14. Misrepresentation .—Notwithstanding anything contained in this Act , where a 
declaration has been made by misrepresentation or suppression of facts, such declaration shall be 
void and shall be deemed never to have been made under this Act. 
 
Schedule 
Form A 
 
DECLARATION UNDER SECTION 5 
 FULL NAME 
 
CNIC 
- 
- 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
- 
 
 
 
 
NTN  
(if available) 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADDRESS 
 
TELEPHONE NUMBER: 
Email: 
UNDISCLOSED INCOME AND DOMESTIC ASSETS 
S.No. Undisclosed income and assets. Value as per section 10. 
1. Undisclosed income.  
2. Open plots and land.  
3. Super structure.  
4. Apartments and flats.  
5. Imported motor vehicles.  
 
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6. Motor  vehicles  purchased  from  a  
manufacturer   or   assembler   or  
dealer in Pakistan. 
 
7. Used   motor   vehicles   purchased  
locally. 
 
8. Securities  and  shares  traded  on 
stock exchange. 
 
9. Securities and shares not traded on  stock exchange.  
10. 
 
National   saving   schemes, postal certificates, bonds, 
securities and other similar investments in capital 
instruments not traded or quoted on  stock exchange. 
 
11. Gold.  
12. Other precious stones and metals.  
13. Stock-in-trade.  
14. Plant and machinery.  
15. Accounts receivable.  
16. Other assets.  
17. Cash, prize bonds and bank accounts  
18. Government securities ( other than those at S.No. 1 in 
the Table under section 7) 
 
Total value in Rupees  
Tax @ 5% (A)  
19. Government   securities   or   rupee  amount from 
encashment of foreign  currency accounts (S.No. 1 
in the Table under section 7) 
 
Tax @ 2%  (B)  
Total Tax (A+B)  
Whether evidence of payment of tax attached. YES NO 
 
VERIFICATION 
 I, the undersigned, solemnly declare that to the best of my knowledge and belief— 
(a) the information given in this declaration is correct and complete; and 
(b) the value of domestic assets have truly been declared. 
 I, further declare that I am competent to make this declaration and verify it in my own  
name. 
Date __________             Signature___________ 
   Name _____________ 
 
 
 
 
RGN. Dated. 20-05-2026