Dear Group Members,
I am writing to seek guidance regarding the Capital Gains Tax applicable to the sale of a property in Pakistan.
I purchased a property in Pakistan in 2019, valued at PKR 3,000,000 (€17,750 at the 2019 conversion rate of €1 = PKR 170). I moved to Ireland in January 2022. Now, I am planning to sell this property for Pakistani Rupee (PKR) 6,000,000 (€20,134 at the current conversion rate of €1 = PKR 298). I understand that I have to pay CGT on the profit made from this sale.
I would like to know how much CGT I have to pay in this case if I sell the property. Additionally, does the revaluation of the PKR play a role in determining the Foreign Capital Gains Tax? If so, how is this revaluation calculated and applied to the capital gains?
I am also required to pay some taxes in Pakistan. Are there any tax treaties between Ireland and Pakistan that might affect my tax liability? What are the reporting requirements and deadlines for declaring this foreign capital gain in the Irish tax return?
I appreciate your assistance in providing detailed information on these points to ensure compliance with tax regulations. If there are any forms or additional documentation required, please let me know so I can prepare and submit them.
Thank you for your assistance.
Best regards,