Written by Akhter Syed in Taxation Income Tax Rule 14 explains how arrival and departure days, holidays, sick leave and transit periods count when determining an individual’s tax residency. ISLAMABAD: The Federal Board of Revenue (FBR) has clarified the rules for determining the tax residency status of individuals in Pakistan for Tax Year 2027, covering the period from July 1, 2026 to June 30, 2027. The FBR issued the Income Tax Rules, 2002, updated up to September 15, 2026, explaining Rule 14 concerning resident individuals under Section 82 of the Income Tax Ordinance, 2001. Under Rule 14, any part of a day spent by an individual in Pakistan counts as a full day of presence. This includes both the day of arrival and the day of departure. The rules also specify that public holidays, sick leave and other leave days count towards an individual’s physical presence in Pakistan.…