Foreign income: IRIS drops reduced tax rate option

Business Recorder reported that filers with foreign earnings are struggling to submit their tax year 2026 returns, because the FBR's IRIS portal no longer lets them claim reduced rates on that income. M. Amayed Ashfaq Tola, president of Tola Associates, said the Attribute tab, which appeared in last year's form, has been taken out of the current version.

Under the previous form, that tab let taxpayers apply treaty-based lower rates to items such as foreign dividends and debt profits. With it gone, the only choices are to report the income as exempt or to tax it at ordinary rates, and Tola argued neither reflects the treaty position. He warned that exempt reporting could be wrong, while ordinary-rate taxation would leave filers owing more than the treaty provides.

Tax experts have asked the FBR to bring the facility back on IRIS so that returns can be filed accurately. The missing tab is therefore hindering both correct filing and the use of treaty rates on foreign income.