The Federal Board of Revenue (FBR) has outlined the definition of a “resident individual” for income tax purposes, elaborating the criteria under Rule 14 of the Income Tax Rules, 2002. This rule, which aligns with Section 82 of the Income Tax Ordinance, 2001, provides a detailed framework for determining an individual’s residential status within Pakistan for taxation. Purpose and Applicability Rule 14 specifies the method for calculating the number of days an individual is present in Pakistan during a tax year to establish their status as a resident or non-resident taxpayer. An individual’s tax obligations are directly influenced by this classification, with residents taxed on their global income and non-residents taxed only on Pakistan-sourced income. Key Provisions of Rule 14 1. General Count of Days: o Any part of a day spent in Pakistan is considered a full day for determining residency. This includes both the day of arrival and the day of departure. 2. Days Counted as Presence in Pakistan: Certain situations, even when not directly related to professional activities, are counted as full days of presence: o Public holidays spent in Pakistan. o Leave days, including sick leave. o Days during which activities in Pakistan are disrupted due to strikes, lock-outs, or supply delays. o Holidays taken before, during, or after any…