CAF-2 · Chapter 11 · Question 12 of 15
A citizen of Pakistan returns to the country and becomes a resident individual in Tax Year 2026. For how many preceding tax years must he have been a non-resident to claim the "returning expatriate" exemption on his foreign-source income?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) C) 4 years
Explanation
Foreign-source income derived by a citizen of Pakistan is exempt in the year they become resident and the following one tax year, provided they were not a resident individual in any of the *four* tax years preceding the year of return.
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