People are mostly conceded about why we have this tax filing system in Pakistan. Tax filing is a legal obligation and responsibility of every citizen who earns taxable income. The procedure of tax filing documents the whole economy and boosts the revenue of the whole country. Timely filing of taxes can save you from harsh penalties and fines.
This tax filing season is becoming difficult for many people. After the announcement of the Tax-free budget in 2024, citizens learned about filing taxes and the penalties they face if they do not. Yet the netizens react hilariously to this issue by creating memes like:
After FBR’s announcement, people are worried about who the filers are and what advantages they will get in 2024. The most searched term in July has become “the filers and non-filers.” Yet the process is quite complex for how to become filer in Pakistan (2024), but this guide can easily help you register yourself as an “Active Taxpayer.”
Who are filers and non-filers in Pakistan?
Tax filers are individuals who are registered with the Federal Board of Revenue and pay their taxes on a regular basis. Non-filers are people who do not appear as active taxpayers and do not file their income tax returns. But there is no need to get worried. FBR has its online filer registration process, which can help you register easily.
Explanation
The broader explanation for a tax filer is a person in Pakistan who files a tax return with FBR. According to FBR’s announcement, the filer will have to calculate the tax against the company’s total revenue. Just to save your hustle, try this Income tax calculator.
Duty as a filer
As a tax filer in Pakistan, you must include registration with FBR and gain a tax identification Number (TIN). And the last one is to submit regular tax returns as per the Pakistani Law.
Who is eligible to file in Pakistan?
Eligibility for becoming a filer is simple. Anyone earning taxable income is eligible for tax filing, and this rule applies to any business or organization in Pakistan. It is said that a tax filer can be anyone, a person, an organization, or any business. You just have to tell the details about the revenue to FBR and claim yourself as an active taxpayer. Still, if you are confused about the eligibility criteria, then contacting an expert can solve your issue.
How To Become a Filer In Pakistan In 2024
Here is a step-by-step comprehensive guide on how to become a filer in Pakistan; follow the steps in order to register online:
STEP 1: Knowing Essential Requirements for Tax filers: Individuals, Companies, and Salaried people
In order to start your registration process, make sure you fulfill their requirements by having information to these:
1. Steps For Individual:
| Tax Filer | Personal Information | Financial Information | Salary/Income Details |
| Individual | CNICResidential AdressMobile NumberNationalityEmail AdressPassport Number | Personal Bank Account detailTransaction Lists | If you have a business, then overall revenue. Use this Business tax calculator for your ease. If you own any property, then it’s address. |
Note: The individual here means:
- If you are a salaried person
- If you own any small business
- If you are a freelancer or self-employed, like a Doctor, Lawyer, or consultant
- You own a property. Calculate tax easily with this property tax calculator.
2. Step For Companies:
| Tax Filer | Personal Information | Financial Information | Document Details |
| Companies | Company/AOP name date of registration of the company whether the company is private or public limitedAccounting PeriodBusiness EmailBusiness active phone number business Adress CNIC’s of all members and partners | Original certificate of maintenance of bank account in AOP’s name Original paid utility bill of business premises not older than 3 months if having a business | Original evidence of owning the businessPartnership deeds for registered firms Share the percentage of every director/partner Passport and CNIC of every director |
3. Steps For Salaried Person:
| Tax Filer | Personal Information | Financial Information | Salary/Income Details |
| Salaried Person | CNICPassport NumberPhone NumberEmail AdressNationalityResidential Adress | Full details of properties you own (if any) Bank statements | Full details of salary Employer Name NTN |
Step 2: Online Tax Filer Registration
Before starting the process, make sure you gather all of your essential documents. Also, you should know how to obtain the NTN number:
Login to the IRIS Website
The second step to become a filer in Pakistan is to visit the IRIS Website. It is an online portal managed by the Federal Board of Revenue. Anyone can easily log into it by following basic steps. As you are new to it, click on “new Registration Button” to proceed.
In the next step, fill out the form. You need to write accurate details of everything mentioned, such as your CNIC number, Phone Number, and email address.
After that, an address information form will appear. Fill out the total area of your house and the required details. After filling out the form, you will receive a code on your number. Fbr will verify the form through email address and phone number.
- Filer Registration for Business
- There is no as big difference for companies. You just have to register your company with the Securities and Exchange Commission of Pakistan and obtain a company NTN for your further processes.
Step 3:Filing Income Tax Returns
- After successful registration, select the relevant income tax form for the current year
- In the form, you have to fill in some information like income and expenses.
- You will have to attach pictures of the bank statement and salary certificates.
- Review the accuracy of all the information that you have filled.
- After completing the process, you will be able to view your tax return, which you can electronically submit on the portal.
Step 4:Verification
For verification status, you will receive a receipt confirming your filer status. You can also visit FBR’s verification portal, which is specially designed to check NTN status. By following these you can easily verify your NTN online. The process will give your filer registration status which is essential for future business transactions.
How to Obtain an NTN Number?
First, visit any nearest Regional Tax office(RTO)
Complete the NTN form they give to you. Add correct details
Submit the Document
Note: The document includes your CNIC number, proof of your residential address, bank statement, and employment certificate if you are employed.
What are FBR filer registration fees?
No fees are required to become a filer in Pakistan. You just have to pay an amount of Rs.1000/- if you dont submit your annual return on time. The reason to pay the fees is that if you do not file the return in time. You will again be added to the non-filer list
How to Check Filer Status by SMS?
| For Individual | Type “ALT” plus space and your CNIC number and send it to 9966 |
| For AOP (Association of Persons) | Type “ALT” plus space your NTN and send it to 9966 |
| AJ&K | Type “AJKATL” plus space and CNIC without dashes and send it to 9966 |
What are the benefits of being a filer in Pakistan?
| Pros | Cons |
| Filers pay zero tax on payment orders | Disclosing all financial details |
| Filers only pay 6% on exports | Your disposable income can be reduced |
| Loan Facilities | Complex for people who have multiple income sources |
| Improved Credit Rating | Responsibility for filing tax return |
| Half property holding tax as compared to the non-filers | Mixup of different types of taxes |
| 1% tax on property transfers | |
| Bank withdrawal is free |
Conclusion
So, that’s it for the guide on how to become a tax filer in Pakistan in 2024. Follow these easy steps, and you can enjoy numerous advantages, especially in terms of reduced taxes and successful future business activities. Moreover, the government also announced a 200% increase in advance taxes on cars above 1600cc, but filers will have to pay only half of it. So, dont miss out on these financial benefits; become a filer today.
Frequently Asked Questions
Q1: What is a tax filer in Pakistan?
A tax filer in Pakistan is an individual or entity that is registered with the Federal Board of Revenue (FBR) and submits annual income tax returns. Filers are listed as active taxpayers and benefit from various tax reductions and legal advantages.
Q2: What is FBR?
The Federal Board of Revenue (FBR) is Pakistan’s federal agency responsible for tax collection, enforcement, and policy implementation.
Q3: What is an Active Taxpayer?
An Active Taxpayer is an individual or entity registered with the FBR who regularly files income tax returns and complies with tax regulations, enjoying benefits like reduced tax rates and improved credit ratings.
Q4: Who are considered non-filers in Pakistan?
Non-filers are individuals or entities that do not submit their income tax returns to the FBR. They are not listed as active taxpayers and often face higher tax rates and penalties.
Q5: What are the benefits of being a filer in Pakistan?
Benefits of being a filer include lower tax rates on financial transactions, reduced property holding taxes, exemptions on bank withdrawal taxes, improved credit ratings, and eligibility for loans and other financial services.
Q6: Who is eligible to become a tax filer in Pakistan?
Anyone earning taxable income in Pakistan, including salaried individuals, business owners, freelancers, and companies, is eligible to become a tax filer. Specific eligibility criteria and required documentation vary based on the type of taxpayer.
Q7: How can I register as a tax filer in Pakistan?
You can register as a tax filer by obtaining a National Tax Number (NTN), gathering the necessary documents, and completing the online registration process on the FBR’s IRIS portal. The guide above provides detailed steps.
