Pakistan Slams Tax Officials For Neglecting UAE Golden Visa Holders
As per IMIDaily, Pakistan Federal Tax ombudsman has given a notice to the country’s tax authorities for not keeping a track of Pakistani UAE Golden Visa holders. They are long term residency permits that require a minimum investment amount of 500,000 AED.
Officials that deal with Tax have been handed a deadline of July 29,2025 to give an explanation of why no action has been taken yet. The neglect of action is a violation of the Income Tax Ordinance that was amended in 2020. This law improves the monitoring of where the wealth is going out of the country and also boosts tax collection.
The Law also requires immigration agencies to share real time travel and residency information or at least five regular reports with the tax department.
However, the ombudsman has blamed the tax authorities, especially the Federal Board of revenue (FBR) , for failing to request these reports. This act of negligence has created gaps in monitoring, allowing some Pakistanis, especially those with investments in UAE to avoid declaring their assets.
How UAE Became An Important Figure In Pakistan’s Tax Evasion Scrutiny
The UAE has around 1.9 million Pakistanis residing, and is one of the largest Pakistani communities abroad. They make up over 16% of the UAE’s overall population. In 2024, the diaspora sent $6.7 Billion USD in remittances to Pakistan, a figure that is expected to exceed
The UAE introduced its Golden Visa program in 2019, which helped the country become a top choice for wealthy investors worldwide. Its low tax environment and its image as a luxury lifestyle destination have made it appealing to rich individuals. In 2024, the UAE attracted more foreign millionaires than any other country and is expected to welcome nearly 10,000 in 2025.
Many rich Pakistanis including celebrities and businessmen have a hold of UAE Golden Visa. However, officials have a suspicion that they may not be fully declaring their rental income or capital gains, and may also be avoiding the mandatory 2% Capital Value Tax (CVT) required by the law.
Privacy Laws And Issues Hindering Financial Transparency
Limited cooperation from the UAE makes the situation more complicated, as the UAE has strict privacy laws and which maintains protection for investors . Although a tax treaty exists between Pakistan, UAE has not provided detailed financial information on residents from Pakistan.
Many of these reportedly use their Golden Visa permits instead of their Pakistani passports to open bank accounts, making it difficult to trace their financial activity. This creates problems for the Automatic Exchange of information system, which depends on passport identification.
Informal Channels Adds Difficulty
Officials also believe that some investors use informal remittance channels, such as hawala, to move out of Pakistan, according to local media reports.These methods operate outside the formal banking system, making it difficult for authorities to track money flow and enforce anti money laundering rules.
