lol Shah F, According to current Pakistani State Bank law you can get USD account (and later USD wire) when you become a Tax filer. I suppose that mean that we need to get the Remittances Certificate before that.
Local wire transfer in PKR or pioneer has no evidence to prove you got remmitence . While USD wire transfer reflect your account transaction with Inward transaction and its proof of you income . and there is no tax on Inward transactions either your bank account USD or PKR .
Yesterday I talked with the operations manager of my branch and he has agreed upon arranging the PRC. I am going to try $200 withdraw, let's see how it goes....I will update here again.
can you please tell me whats outcome. how are you guys solving tax issue with payoneer or IBFT payments from upwork/payoneer?
did PRC help ?
thanks for input
Yeah here is the update....it was transferred via Barclays Bank London to the Standard Chartered Bank..and then SCB transferred to my Faysal Bank.
The payment got delayed because SCB needed R-Form to be submitted by me. I had sent them the R-Form and mentioning the finance code of 9184 (Software Export).
I was able to get the PRC from SCB as well after a few days (Had to apply for this via my bank - Faysal Bank). But I found that they have recorded with wrong finance code, they used the "miscellaneous" code. They also mentioned that foreign amount was received in PKR, not in USD.
I have written again to PSEB and waiting for their reply...I have asked them if Tax Exemption will still be applied if we receive foreign payment in PKR.
Next time if I withdraw from Payoneer, I will send an additional letter to SCB and emphasizing on using the correct finance code.
Verdict: It was not an IBFT payment...so that's a good sign. In my opinion, a foreign remittance in PKR should not be an issue for tax exemption (It is still an export).
p.s; Since I withdraw to my company account that's why SCB needed R-Form from me...I think banks don't ask for R-Form in case of a personal account. Personal accounts should be avoided anyway if you are working professionally.
Shah can you tell me what rate currently you are getting. In local wire transfer its about 132 what about USD wire transfer. Also tell me do I need to get USD account or my same account will work and bank will automatically convert. I got confused because at same point one is talking about converstion rate and also to get USD account.
local wire transfer pkr where upwork charge .99 but your conversion rate will be less then interbank rate e.g 133PKR instead of 141PKR . I recommend to use USD wire transfer where upwork charge $30 per transaction send USD to you account if your account is PKR then your bank will automatically convert to current interback rate , if your account USD then USD will be at your account . and this method is good for proof of your income called inward transaction no tax on this transaction .
Thanks. If I get 141 rate for $ then I will definitely use this method. I have also applied for the remittance certificate for the other transactions see if I get it. Because someone mentioned that I can get it for the local bank wire transfers transaction as well.
for local PKR you can see at your bank statement transferd from a local bank account at Pakistan so e you can't prove its a remetence . Usualy trasferd from Askari bank. I dont know whos behind but Upwork says our partners where upwork pay USD at united states and they pay pkr at Pakistan .
Yes from now on I will be withdrawing with $30 method. But for the old transactions I have applied for the certificate as someone told me I could get it from the bank by informing them its remittance and they will verify. My bank asked me to provide the list of the transaction with the amounts now I am waiting for them to inform me about it they said it could take 1 week to 1 months lets see if I get it or not. If I have known before I would have withdrawn with USD method.