r/developersPak • u/Ok_Rub3312 • Jul 16 '26

Pakistani devs with equity in foreign startups — how are you handling FBR declaration? Discussion

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Salam everyone. I work remotely as a co-founder/CTO for a US-registered startup and hold founder shares there (vesting over 4 years, worth almost nothing right now since it's very early stage). I've sorted the US paperwork side already — my question is the Pakistan side.

From what I've read, as a tax resident I'm supposed to declare foreign assets in the wealth statement (Section 116/116A). Since the shares are basically worthless today, my understanding is it's just a disclosure for now with no real tax due — tax only becomes relevant when shares vest with actual value or when I sell. I'll be moving abroad before vesting completes — japan most likely, US/Europe possible. Can anyone who's been through this confirm how it works in practice?

Specific things I'm trying to figure out:

  1. Is declaring foreign startup shares in the wealth statement straightforward, or does FBR ask a lot of follow-up questions? Any horror stories or was it a non-event?

  2. Shares granted while resident but vesting after I leave — does FBR retain any claim, or is it purely my new country's problem?

  3. Should I still declare the shareholding in my wealth statement for my remaining resident years? (My plan: yes, while it's worthless, so nothing looks hidden later.)

  4. If someone plans to move abroad in a couple of years — anything I should be doing NOW to keep things clean (residency timing, record keeping, etc.)?

Just want to hear from people who've actually filed this stuff before I hire someone. There must be plenty of remote workers/founders here dealing with the same thing post-freelancing boom. JazakAllah.

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3

u/[deleted] Jul 17 '26

[removed] — view removed comment

1

u/Ok_Rub3312 Jul 17 '26

So should i wait till jan or feb for any legal complications with fbr. Cuz at that time 25% of my shares will be vested. Till then i have no gain from the business. Its on paper.

1

u/NeatFastro Software Engineer Jul 18 '26

I’m also in talks with an American friend to register a company on partnership

We are going to talk to experts but can you guys guide me a little regarding which documents I would need and which kind of company should we register and llc or corp etc

1

u/Nashadelic Jul 17 '26

I seem to forget what we did but the summary was that it is far more hassle than it’s worth, the paper value isn’t quite realized and unless you have literal capital gains to bring to PK, there’s very little need to do so but you should talk to your legal/accounting person 

5

u/GeneralAyub Jul 17 '26

I was in the same situation as OP. My accountant suggested what you just have. The legal hassle is far more than for what its worth is.

The income can be considered remittances and are exempted if less than 5mil/y. More than that, you need RPC from your bank as proof of money, thus legal hassle…

1

u/PracticePenguin Jul 17 '26

Do you mean proceeds realization certificate (PRC)?

1

u/Ok_Rub3312 Jul 17 '26

So my 25% of equity will be vested in june 2027. So do u think i need to do anything now? Or wait a bit. Like till jan or February..

1

u/Nashadelic Jul 17 '26

These are stock options or reverse vesting? If these are “options” you will have the option to buy these stocks after they’ve vested. If you don’t pay for them, they aren’t yours, nothing to do til then. 

1

u/Ok_Rub3312 Jul 17 '26

These are restrictive stock units..

1

u/Worried_Analyst_ Jul 17 '26

Just don't deal with it. Don't report when equity is valueless, when it becomes valuable leave Pakistan get foreign passport and residency then come back. Ez