Written by Akhter Syed in Taxation Pakistan residents claiming tax credits on foreign income must submit an application with their income tax return and provide supporting evidence of foreign tax payments. ISLAMABAD: The Federal Board of Revenue (FBR) has explained the procedure for claiming foreign tax credits by Pakistan residents for Tax Year 2027, covering July 1, 2026 to June 30, 2027. The FBR issued the Income Tax Rules, 2002, updated up to September 15, 2026, explaining Rule 16 concerning foreign tax credits under Section 103 of the Income Tax Ordinance, 2001. Under Rule 16, a resident taxpayer seeking a foreign tax credit must submit an application along with their income tax return for the relevant tax year. The application must follow the prescribed format provided in Part I of the First Schedule to the Income Tax Rules, 2002. Documents required for foreign tax credit According to the FBR rules, taxpayers must provide supporting documents with their applications. Where foreign income tax has been deducted…