Pakistani Americans in Los Angeles, Orange County and the Inland Empire often still own property, bank accounts or businesses in Pakistan. This page explains when they need to deal with FBR and how we handle it remotely across the time difference.
Who in Southern California Needs a Pakistani Return
Many Pakistani families in Los Angeles have no Pakistani income at all and need nothing from FBR. The picture changes when you own a house in DHA Lahore or Karachi that is rented out, inherit a share of a parent's property, keep savings in a Pakistani bank, or plan to buy or sell property in Pakistan. In each of these cases, a Pakistani return either is required or saves money.
Residence and the 182-Day Rule
Pakistan taxes non-residents only on income from Pakistani sources. Someone who lives in Los Angeles and spends fewer than 183 days in Pakistan in a tax year is generally non-resident for that year. Our page on non-resident status explains the test in more detail.
Rent from Property in Pakistan
Rent from a house or flat in Pakistan is Pakistani-source income and taxable in Pakistan even for a non-resident. A tenant that is a company or bank withholds tax, which the owner claims in the return. Many owners in Los Angeles have a relative collect the rent; the owner, not the relative, should declare it.
Selling a House in Pakistan
When a non-resident sells property, the seller's advance tax under section 236C is charged at a lower rate for active filers, and capital gains tax depends on when the property was acquired. Filing before the sale usually costs less than the extra tax.
US Obligations Are Separate
US citizens and green card holders are taxed by the United States on worldwide income and may have to report foreign accounts and property. We deal only with the Pakistani side; your US preparer should handle the US side, and a credit for Pakistani tax may be available there.
Working Across the Time Difference
Lahore is twelve hours ahead of Los Angeles in summer. We work by WhatsApp and email, so documents sent in your evening are usually reviewed by your next morning. For a broader overview, see our guide for Pakistanis in the USA.
Frequently Asked Questions
Do I need to file in Pakistan if I live in Los Angeles?
Only if you have Pakistani-source income or want filer status for property transactions.
Is rent from my Lahore house taxable in Pakistan?
Yes, it is Pakistani-source income.
Can you handle my US return too?
No, we handle the Pakistani side; a US preparer should handle the US return.
Can I register with FBR from California?
Yes, online with a NICOP or CNIC.
Get Expert Tax Help in Pakistanis in Los Angeles Today
Kamboh Associates serves all Pakistanis in Los Angeles clients remotely. Share your documents via WhatsApp and we handle everything — free first consultation.