How to Become a Tax Filer in Pakistan

The government of Pakistan is taking measures to bring people on the tax net. The Federal Board of Revenue (FBR) is making sure that all taxpayers become filers as well. Tax Filer is a person who regularly files income tax returns and whose name appears on the Active Tax Payer List issued by FBR. 

Benefits of Becoming a Tax Filer

  • Less tax deduction by banks on both profits and cash withdrawals
  • Reduction in tax on registering, transferring, or tokens of motor vehicles
  • Less tax on buying and selling of immovable property
  • Less tax on capital gains of securities
  • Lower charges for tax on dividend
  • Lower rate of tax on prize bond winnings
  • Overpaid tax can be claimed
  • Avoidance from a penalty in case of tax returns not filed

Steps to File Income Tax Return

  1. Logging into IRIS Portal

IRIS is the online portal for filing Income Tax Return. You must have NTN or Registration number to log in. Once registered, you will get a confirmation email.

  1. Password for Iris Login

While registering, they provide you a password along with the registration number. This password can anytime be changed in the portal.

  1. Completing Income Tax Return

Electronically fill in the data with all the relevant content available. After you have submitted the data, IRIS will show confirmation. After this, an email confirmation will also be received at a specified email. You will become a filer within a week. Your name will appear in the Active Tax Payer List (ATL).

Video tutorials are available on the FBR website for your ease.

Guide to Become a Tax Filer in Pakistan

Register for Income Tax

To become a tax filer in Pakistan, start by registering yourself with the Federal Board of Revenue (FBR). for individuals, this registration can be done online through the IRIS portal. Visiting Regional Tax Office (RTO) is necessary for the Principal Officer of AOP and Company.

Some Important Facts of Taxpayer Registration

  • After becoming e-enrolled on the IRIS portal, the individual, association of person, and company will be considered registered. 
  • E-enrollment with the Federal Board of Revenue provides the National Tax Number (NTN) or Registration Number and a Password.
  • For individuals, 13 digit CNIC number is their National Tax Number.
  • For Association of Persons (AOP) and Company, National Tax Number is a 7 digit number which they receive after e-enrollment.
  • These credentials are only used to access the IRIS portal, an online Income Tax system, to file Income Tax Return online.

Requirements for E-Enrollment

Be sure to have the necessary information before starting the online registration.

For Individuals: 

  • CNIC or NICOP or Passport number
  • Cell phone number and email address
  • Nationality
  • Residential address
  • Accounting period
  • In the case of business income: business name, business address, and business activity
  • In the case of salary income, name and NTN
  • In the case of property income, its address

Principal Officer of Company and AOP:

  • Name of company or AOP
  • Business name and address
  • Accounting period
  • Business phone number, E-mail address, and business activity
  • Address of business
  • Company type
  • Date of registration
  • In the case of a company, an incorporation certificate by SECP 
  • In the case of a registered firm, a registration certificate, and partnership deed
  • If not registered, partnership deed and In case of a trust, trust deed
  • In the case of society, a registration certificate 
  • Name and CNIC/NTN of the representative
  • For every director and major shareholder: Name, CNIC/NTN/Passport, and share percentage

Non-resident Company having Permanent Establishment in Pakistan

  • Name of company and official address
  • Accounting period
  • Official phone number 
  • Business activity
  • Registration number and date of the branch from SECP
  • Name and address of an authorized representative of the company
  • Authority letter for appointment of an authorized representative of the company
  • Cell phone number and Email address of an authorized representative of the company

Non-resident Company Not having Permanent Establishment in Pakistan

  • Name of company and foreign business address 
  • Directors of the company: name and nationality
  • Accounting period
  • Name and address of an authorized representative of the company
  • Authority letter for appointment of an authorized representative of the company
  • Contact number and e-mail of an authorized representative of the company
  • Principal business activity and
  • Tax Registration from foreign concerned regulatory authorities 

Registration Process

Online Registration:

Online registration is only available for individuals at the IRIS portal. They must have:

  • Gone through User Guide
  • Computer, scanner, and active internet connection
  • Cell phone number registered on their own CNIC
  • Personal email address
  • Scanned pdf files of:
  1. Certificate of maintenance of personal bank account
  2. Evidence of tenancy/ownership of the business 
  3. Paid utility bill of business under 3 months

Registration at Facilitation Counters of Tax Houses:

At facilitation counters of tax houses, individuals, associations of persons, and a company can register themselves. 

In the case of an individual going to a facilitation counter, the same things are required as mentioned above.

For registration of an AOP, any one of the partners must:

  • Go to any Facilitation Counter with the following documents:
  1. Original partnership deed
  2. Original registration certificate from Registrar of Firms
  3. CNICs of all Members
  4. A letter signed by all Members-original
  5. Cell phone number and email address
  6. Maintenance of bank account-original certificate
  7. Evidence of tenancy/ownership of a business-original
  8. Paid utility bill of business under 3 months-original

For registration of a company, the Principal Officer must:

  • Go to any Facilitation Counter with the following documents:
  1. Incorporation Certificate of the Company
  2. CNICs of all Directors
  3. A letter signed by all directors-original
  4. Cell phone number and email address
  5. Maintenance of bank account in Company’s name-original certificate
  6. Evidence of tenancy/ownership of the business-original
  7. Paid utility bill of business under 3 months-original

Modification of Income Tax Registration

The registration of a person can be modified if they discover any change or omission in information, particulars, data, or documents. To do this, a person has to file a modification registration form in the IRIS portal.

How to Check Your Tax Filer Status

To check the status, you need to check your name on the list. It can be done in three ways:

  1. Manually: By downloading a list of Active Tax Payers.
  2. SMS: Type ATL space Your CNIC and send it to 9966.
  3. Website: Click on the taxpayer list on the FBR website. Type your CNIC and status will be displayed in minutes. 

Income Tax Due Dates

The due dates are as follows:

  • For Individual and Association of Person, the due date is on or before 30th September.
  • For a Company, the due date is on or before 31st December.
  • For Company having a special tax year, the due date is on or before 30th September.

Concluding Remarks

I have tried my best to include all the necessary information for you all to understand the procedure in detail. I hope you get about it easily. It is always recommended to seek professional help if you are filing for the first time.