Foreign Assets (Declaration and Repatriation) Act, 2018

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FOREIGN ASSETS (DECLARATION AND REPATRIATION) 
ACT, 2018 
 
 
 
 
 
 
CONTENTS 
           __________ 
1.  Short title and commencement  
2.  Definitions 
3.  Act to override other laws  
4.  Application  
5.  Declaration   and   repatriation   of   assets   held   outside Pakistan 
6.  Period of applicability 
7.  Charge of tax  
8.  Payment of tax  
9.  Currency and rate of conversion  
10. Mode and manner  
11. Incorporation in books of account  
12.  Investment    in    Government    securities 
13.  Confidentiality 
14.  Declaration   not   admissible   in   evidence  
15. Removal of difficulty  
16.   Misrepresentation  
 
 
 
 

 
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FOREIGN ASSETS (DECLARATION AND REPATRIATION) ACT, 2018 
[22nd  May, 2018] 
Act No. XXX 
AN ACT 
to provide for declaration and repatriation of assets and income held outside Pakistan 
 WHEREAS there is a large scale non -reporting and under -reporting of assets and income 
held outside Pakistan; 
 AND WHEREAS it is expedient to provide for declaration and repatriation of assets and 
income held outside Pakistan for the purposes hereinafter appearing;  
  
 It is hereby enacted as follows:— 
  
 1. Short title and commencement. —(1) This Act may be called the Foreign Assets 
(Declaration and Repatriation) 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) “cost of acquisition of the mortgaged asset ” means the sum of  mortgaged 
payments and other mortgaged cost of acquisition; 
(b)  “court of  law ” means  an  Appellate Tribunal,  a  High  Court or  Supreme 
Court of Pakistan;  
(c) “declarant” means a person making a declaration under sectio n 5; 
(d) “fair market value ” means price of foreign asset determined and  declared by 
a declarant himself, but in no case is less than the cost of acquisition of the 
foreign assets; 
(e) “foreign assets” means any movable or immovable assets held outside Pakistan 
and includes real estate, mortgaged assets, stock and  shares,  bank  accounts,  
bullion,  cash,  jewels,  paintings,  accounts and loan receivables, beneficial 
ownership or beneficial  interests or contribution in offshore entities and trusts; 
(f) “government security” means a bond, note or other debt instrument issued by the 
Federal Government with a promise of repayment upon maturity; 
(g)  “liquid  assets ”  means  cash  or  an asset  that  can  be  readily  converted into 
cash with a minimal impact on the assets ’ value and  
includes bank notes, marketable securities, stocks, promissory  
 
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notes, government bonds, deposit certificates and other similar  
instruments; and 
(h)  “holder of public office ” means a person who is or has been, dur ing 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; 
(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 Secretary,  
 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 o f 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,  
 
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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 
NaibNazim or UnionNazim or Union NaibNazim; 
 (2) All other words and expressions used but not defined in this Act  shall have the same 
meaning assigned to them under the Income Tax Ordinance, 2001 (XLIX of 2001) and the rules 
made thereunder. 
 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) all citizens of Pakistan wherever they may be, except holders of  public office, 
their spouses and dependent children; and 
(b) all foreign assets held by the persons mentioned in clause (a) and  tax paid on 
the value of such assets under section 8, except where proceedings are pending 
in any court of law in respect of the foreign 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   and   repatriation   of   assets   held   outside 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 foreign assets acquired before the tenth day of April, 
2018. 
 (2)  The value of a foreign asset shall be fair market value as defined in section 2.  
 (3)  The declaration of value and tax paid in respect of the foreign  assets shall be in the 
manner as set out in Form A of the Schedule to this Act. 
 (4)   The description of the foreign assets declared under sub-section (1) and (3) shall be in the 
manner as set out in Form B of the Schedule to this Act.  
 
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 (5)  A person declaring foreign assets under sub -section (1), may by the due date as 
specified in section 6 also repatriate the said foreign assets in Pakistan. 
 (6) The declaration of foreign 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 assets while filing declaration on Federal Board of 
Revenue’s web portal. 
 6. Period of applicability .—The declaration and repatriation 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 foreign assets declared and repatriated into Pakistan within the due 
date shall be chargeable to tax at the rates specif ied in the Table below, namely: — 
TABLE 
 
 
.   
 
 
 
 
 
 
 8. Payment  of  tax.—(1)  The  due  date  for  the  payment  of  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) where tax has been paid under sub -section (1) in 
respect of the foreign assets declared under section 5. 
 9. Currency and rate of conversion .—(1) The value of a foreign asset under sub-section 
(2) of section 5 shall be in Rupees. 
 (2) The tax payable under section 8 shall be paid in United States dollars as specified in 
Form A of the Schedule to this Act. 
 (3) The value in Rupees under sub -section (1) shall be converted into  United States dollars  
at  the  State  Bank of  Pakistan’s rate  applying  between  the  United  States  dollar  and  the  Rupee  
on  the  date  the declaration is made under section 6 and tax is paid under section 8. 
S.No. Foreign assets Rate (as a 
percentage of the 
value of foreign 
assets) 
(1) (2) (3) 
1. Liquid assets not repatriated 5% 
2. Immovable assets outside Pakistan 3% 
3. Liquid    assets    repatriated    and  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% 
4. Liquid assets repatriated 
 
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 10. Mode and manner .—The State Bank of Pakistan (SBP) shal l notify the mode and 
manner of— 
(a) repatriation of liquid assets in Pakistan; 
(b) deposit of tax in US dollars in SBP; and  
(c) deposit of tax in Rupees in the income tax account of the Federal  
Consolidated Fund. 
 11. Incorporation in books of account. — (1) Where a declarant has  paid tax under section 
8 in respect of foreign assets declared under section 5, the declarant shall be entitled to incorporate in 
his books of account such foreign assets. 
 (2) For the purpose of the Income Tax Ordinance, 2001 (XLIX of 2001), the cost of 
acquisition of foreign assets and date of acquisition shall be deemed to be the value declared by the 
declarant and the date on which declaration has been made by the declarant, respectively. 
 12. Investment    in    Government    securities. —Investment    in Government securities 
under S. No. 3 of the Table in section 7 shall be made in accordance with a scheme to be introduced 
by the Government of Pakistan through the State Bank of Pakistan, by notification in the official 
Gazette, specifying periodic rate  of return, the period for the rate of return and period of  
maturity. 
 13. 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 Rupees but 
not exceeding one  million Rupees or imprisonment for a term not exceeding one year or with both. 
 14. 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). 
 15. Removal of difficulty. —If any difficulty arises in givi ng 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. 
 16.   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. 
 
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Schedule 
Form A 
 
*CNIC includes NICOP or any other identification number issued by National Database and 
Registration Authority. 
 
DECLARATION UNDER SECTION 5 
FULL NAME 
 
CNIC*     -        -  
NTN (if available)            
ADDRESS 
 
TELEPHONE NUMBER: 
Email: 
FOREIGN ASSETS 
S.No. Nature of assets Amount in 
Rupees 
Tax Rate Tax in Pak Rupees 
1. Liquid assets not repatriated  5%  
2. Immovable assets outside  
Pakistan 
 3%  
. Liquid  assets  repatriated 
and invested in 
Government securities 
 2%  
4. Liquid assets repatriated  2%  
Total tax in Rupees(1+2+3+4)  
Total tax in US Dollars  
Whether evidence of payment of tax attached YES NO 
 
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Form B 
 
 
DESCRIPTION OF ASSETS 
[see section 5(4)] 
A. Liquid assets not repatriated 
1. Foreign currency 
 
 
 
Bank account details 
Bank name and bank A/c  1  
Bank name and bank A/c  2  
Bank name and bank A/c  3  
Bank name and bank A/c  4  
Bank name and bank A/c  5  
2. Other liquid assets (securities, stocks, promissory notes, Government bonds, 
deposit certificates and other similar instruments, etc.) 
1. 
2. 
3. 
4. 
5. 
6. 
B. IMMOVABLE PROPERTY(Jurisdiction, address and size) 
1. 
2. 
3. 
4. 
5. 
6. 
7. 
 
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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 foreign assets has truly been declared. 
I, further declare that I am competent to make this declaration and verify it in my own  name. 
Date __________     Signature___________ 
       Name _________  ___ 
 
 
 
______________