Karachi, September 22, 2024 – The Federal Board of Revenue (FBR) has issued clear guidelines categorizing resident and non-resident persons for tax purposes under the Income Tax Ordinance, 2001 for the tax year 2024-25. This classification is essential for determining the tax liabilities of individuals, companies, and associations of persons. The FBR explained that under Section 81 of the Income Tax Ordinance, 2001, a person is categorized as either a resident or a non-resident for tax purposes. A person will be considered a resident for a given tax year if they fall into one of the following categories: 1. Resident Person: – Individual, company, or association of persons: A person residing in Pakistan for the year. – Federal Government: Automatically considered a resident. On the other hand, a non-resident person is defined as any individual or entity that does not meet the criteria for being considered a resident during that tax year. Further clarifications were provided under Section 82 of the Ordinance, which focuses on defining a resident individual. The FBR outlined that an individual will be considered a resident for tax purposes if: • They are physically present in Pakistan for a cumulative period of 183 days or more during the tax year. • They are an employee or official of the Federal Government or a Provincial Government posted abroad during the tax year. • A citizen of Pakistan who is not present in any other country for more than 182…