How to Report Foreign Income in the New IRIS Tax Return (2026 Guide)

Reporting Foreign Income in the New IRIS Return

If you have received salaries from foreign employers, payments from overseas clients, profits from foreign businesses, rental income from overseas properties, dividends, bank interest, royalties, or capital gains from foreign assets, you are likely to report these under the Foreign Sources section.

Select the Foreign Sources option as an income source in the Return Prerequisites screen, if any of the above circumstances apply to you.

For the step-by-step procedure from logging in to submitting your tax return, you can view our guide on how to file your income tax return online.

Step 1: Add Your Foreign Tax Identification Number

Go to Foreign Sources and select Foreign Sources. Click on “+ Add Tax Identification No.” to add your Foreign Tax Identification Number, select the country you are filing tax for from the drop-down list, and click Add. You can edit or delete the Tax Identification Number later from the Add and Delete buttons next to it.

Step 2: Add Each Type of Foreign Income

The return has separate fields for each type of foreign income; you can add all the types that apply to you:

• Foreign Property Income/Loss – add the Foreign Property Address and click Add
• Foreign Business Income/Loss – add the Business Name and Business Address in the pop-up and click Add
• Foreign Capital Gain/Loss – add a Description and click Add
• Foreign Other Sources Income/Loss – add an Other Sources Description and click Add
• Foreign Salary Income – add the Employer Name and click Add

All the items that you added appear on the screen. You will then enter the amount for each of these items and click Calculate followed by Next.

Common Errors We Notice when Clients Report Foreign Income

• Not adding the Tax Identification Number step, which should be the first step when reporting foreign income. You need to add your identification number and link it to your country before you can report your foreign income.
• Reporting all types of foreign income in one category instead of the specific category for each type of foreign income. There are separate fields for foreign salary, property, business, capital gains, and other sources of income, and all of these types need to be reported separately.
• Forgetting to report foreign bank interest and dividends because these might be taxed abroad as well. Reporting foreign income is mandatory, and you can claim a tax credit on the taxes already paid in another country separately.

FAQ

Do I need to report foreign income if tax was withheld abroad?

Foreign income needs to be reported in this return as well, and any tax already withheld abroad can be claimed as a tax credit in the Foreign Tax Credit section and not by omitting the income.

Can I report foreign income from more than one country?

If you have income from more than one country, you will need to add more than one Tax Identification Number (one for each country) and add your income items against each one.

Is foreign salary reported under Employment or under Foreign Sources?

You report foreign salary under the Foreign Sources tab in the Salary category. Employment-related income is only for residents of Pakistan.

Need proof of residency to claim treaty benefits? See our Tax Residency Certificate (TRC) service.