RDA Tax Exemptions after Finance Act 2026: Account and Income Conditions

Full Article

Holding a Roshan Digital Account does not make every Pakistan-source receipt exempt or remove every return obligation. The 2026 amendments identify particular account types and income categories. Rental or business income outside that list can change the answer.

Which accounts are covered?

The amendments refer to Foreign Currency Value Accounts, Foreign Currency Business Value Accounts, Non-Resident Rupee Value Accounts and Non-Resident Rupee Business Value Accounts. Establish the actual account classification from bank records, not merely the marketing name used for it.

The return and registration exception

Substituted clause 114A of Part IV of the Second Schedule disapplies section 114(1)(ae) and section 181 for qualifying account holders. It does not apply where the holder has Pakistan-source taxable income outside the specified categories. Those categories cover specified account interest, government securities income, qualifying property gains, specified listed-security and mutual-fund gains, and dividends. The funding conditions are part of the test; the property-gain limb specifically refers to FCVA or NRVA proceeds.

A practical distinction

A holder with only qualifying account interest should test the exception against bank statements. A holder also receiving rent from a Pakistan property must separately consider that rental income and filing duties. The account is not a blanket exemption certificate.

NPOs are a separate question

Section 159(1D) addresses exemption certificates for a person approved under section 2(36)(c) for a tax year. The Act also changes named institutions in the Second Schedule. Neither change makes every organization calling itself a charity automatically exempt. Preserve the approval and verify the applicable exemption conditions.

Source and scope

Finance Act 2026, official FBR gazette, PDF pages 43-63. Text reviewed on 14 October 2026. This explains the enacted amendment; a notification-dependent procedure must be checked separately before use.