Taxation
Management FIN 623
VU
MODULE
5
LESSON
5.14
RESIDENTIAL
STATUS & TAXATION
Residential
Status
· Determination
of residential status of a person is an
important concept.
· Significance
of residential status in computing
total income and tax
liability
· Residential
status has always nexus to a
tax year.
Resident
Person (Section
81)
a.
Resident Individual, Resident
Company, or Resident Association of
Persons for the year
or
b. The
Federal Government
NonResident
Person (Section 81)
(2)
· A
person shall be non-resident person
for a tax year if the person is
not a resident person for a
tax
year.
Resident
Individual (Section
82)
· An
individual shall be a resident
individual for a tax year if the
individual-
· is
present in Pakistan for a
period of, or periods amounting in
aggregate to, one hundred
and
[eighty-three]
days or more in the tax year;
or
· is an
employee or official of the Federal
Government or a Provincial Government
posted abroad in
the tax
year.
Resident
Association of Persons Sec. 84
An
association of persons shall be a
resident association of persons
for a tax year if the control
and
management
of the affairs of the association is
situated wholly or partly in
Pakistan at any time in the
year.
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