The Central Directorate of National Savings (CDNS) has informed that all overseas Pakistanis will be exempted from withholding tax on National Savings Schemes (NSS).
The CDNS through a letter to the State Bank of Pakistan, Habib Bank Limited and the United Bank Limited, clarified to all banks handling investments from overseas Pakistani banks about the confusion arisen and queries being made from various quarters.
It had been clarified to the banks and their branches that the provisions of withholding tax apply only to investments made in Pakistan by the resident individuals.
Investment received by branches of the HBL and the UBL operating abroad and profit paid continues exempted from the deduction of withholding tax, according to the clarification.
The CDNS, therefore, requested to clarify the position to all bank branches dealing in the NSS.
The government has exempted withholding tax on investment up to Rs 150,000 in the NSS.