Pakistan is considered one of those countries with the lowest Gross Domestic Product (GDP) ratios. The more taxes are paid, the more chances to increase the GDP that eventually generates more revenue for a country. For this purpose, the Government took several initiatives as well. This blog will tell you how to become a tax filer in Pakistan.
There are two categories of Pakistani citizens, filers and non-filers. The persons included in the filer category are those who are active taxpayers. And those who are not active taxpayers are known as non-filers.
Active taxpayers need to pay taxes as their assets are greater than a certain limit. The Federal Board of Revenue (FBR) manages a list of active taxpayers known as the Active Taxpayer List (ATL). On the first day of every week, FBR updates the list.
Benefits of Becoming a Tax Filer:
If your income is 6 lacs per year, you must be a tax filer.
By becoming a filer in Pakistan, the Federal Government will provide the benefits like:
- To generate more GDP, the Government is trying to make sure that every eligible person must pay taxes. For this purpose, the Government ordered to charge less vehicle token tax from filers
- Similarly, the filers will have to pay only 0.3% withholding tax on each transaction of more than 50,000. But the non-filers must pay 0.4% withholding tax
- The tax filers pay 50% less tax whenever they buy an immovable property as compared to nontax filers
- Less or no withholding tax on bank withdrawals
- Low tax on registration or token or transfer of Vehicles
- No tax on issuance of banking documents like cheques and pay orders
- The filer can claim refunds/adjustments of taxes while filing Tax Returns
- Avoidant from the penalty for non-filing of Tax Returns
How to Become a Filer in Pakistan?
There are certain things to notice if you want to become a filer. For becoming a tax filer, you will need to get a National Tax Number (NTN) from FBR. For this purpose, you need to go to the FBR website and create an account.
How to Get NTN from FBR?
To get an NTN, you will need to visit the official site of FBR. Follow the steps mentioned below:
- Open the IRIS portal from the FBR website. You may click here to open the FBR IRIS portal
- If you are an unregistered person, then click on the registration button
- Enter all details in the form, such as name, CNIC, address, and other required information
- You will get two codes via SMS or email
- Enter the codes in the boxes and click on submit button
- Then log in to your account by given username and password
- Click on the draft option, and 181 application forms will appear
- Then click on the edit button to enter NTN details
- Enter all required information
- You will get an NTN number from FBR in a few hours
Documents required for NTN:
The required documents for NTN are following:
- Office Address
- Copy of CNIC
- Valid Email address of the office
- Copy of recently paid electricity bill
- National Tax Number (NTN) of Employer
After getting the NTN number, go back to the IRIS portal and apply for becoming a filer.
How to Get Registered as a Tax Filer?
Follow the steps below to get registered as a tax filer:
- Open the IRIS portal first, click here to open the portal directly
- Then click on the option of e-enrolment for a registered person
- A form will appear on the screen
- Then fill in the required information on the form
- Then click the submit button
- After enrollment is completed, you will get a password from the FBR website through email or SMS
- Enter the CNIC number in the registration No field and enter the password that you received
- Click on the login button
How to Check Active Taxpayer List (ATL)?
After getting enrolled, do not forget to check the ATL status. You can check ATL in different ways. On FBR’s official website, a complete and up-to-date list is available for active taxpayers.
Methods to Check ATL status:
The ATL Status can be easily checked by several methods. You can check ATL status through the FBR website, SMS, or online portal.
Follow the steps below to check your name as an ATL through the official website of FBR:
- Open the official website of FBR
- Click on the option “ATL income tax”
- The list will appear; download it
- Then search your name
Follow the steps below to check ATL status via SMS:
- Open the mobile messaging app
- Type ATL, then give space and type 13 CNIC digits
- Send the message to 9966
- You will get a reply soon
Note: If you want to check the ATL status of a company, then type 7 digits NTN ATL and send it to 9966
Follow the steps below to check ATL status via Online Portal:
- Open the online web browser, and you may click here to open the online portal
- There will be two blank fields of date and Registration number
- Enter CNIC or NTN in the registration number field
- Then type date as well
- Recaptcha is required to verify
- Then after verifying Recaptcha, you will get ATL status
Frequently Asked Question (FAQs) about How to Become a Filer:
Below are the FAQs about how to become a filer:
Q. How can I become a filer?
Ans. If your income falls on the taxable income scale, you are supposed to pay tax for this. All you have to do is register with FBR, and the status will be updated soon at ATL.
Q. Why is it important to hold NTN?
Ans. If you hold an NTN, it can help you in several ways. For example, you will get more chances to get a project and investors for your business.
Q. What are the documents required for the NTN?
Ans. You will have to submit several documents to get an NTN, including CNIC, electricity bill, and payslip.
Here was a complete step-to-step guide to becoming a filer. As Pakistani citizens, we are responsible for paying taxes. So, get yourself registered to FBR and fulfill your responsibility. Stay in touch with Business World for further updates.