How to become a Filer? These days, almost everyone is trying to become a filer. Media and social media have exaggerated the benefits of being an Active taxpayer and highlighted the drawbacks of being a non-filer so much that people, without proper research, assume that becoming an Active taxpayer is the best choice. However, the reality is that not everyone is required to in the ATL List, nor can everyone enjoy the benefits associated with it. In some cases, people become Active taxpayers for short-term advantages but later face legal obligations they weren’t aware of — leading to unexpected losses.
Difference Between Active, Inactive, and Late Filer:
- Filer or Active Taxpayer is someone who is registered with FBR, has a valid NTN (National Tax Number), and regularly files annual income tax returns on time.
- Late Filer is a person who has filed their returns, but after the due date.
- Non-Filer is someone who is either not registered with FBR or has failed to file their return despite being registered.
The first step to becoming an Active taxpayer is registering with FBR and obtaining an NTN. Only then can one submit an income declaration.
Is Everyone Legally Required to File a Tax Return?
According to FBR laws, not every Pakistani is legally bound to file an income tax return. It is mandatory only for individuals who:
- Have an annual income of PKR 400,000 or more;
- Own a vehicle of 1300cc or above;
- Own land or property.
Without meeting these conditions, an ordinary citizen is not legally obligated to file a tax returns.
However, many people become filers just to save taxes during property transactions or vehicle registration, even when their income is not taxable.
Example:
Suppose someone lives in Pakistan and has no personal income, but receives money from children abroad to buy property. The property is registered in their name, and they become a filer just to benefit from reduced taxes — even though they are not legally required to file a return.
Similarly, widows are explicitly exempted and do not required to file returns.
But once you register with FBR and obtain an NTN, you are legally required to file your Income Declaration every year, even if you have no income. Failing to do so may result in penalties and legal consequences, and you’ll also have to pay a consultant’s fee annually.
How to become a Filer? Things to Consider:
- Are you legally required to file a return?
- If not, you might still be able to access some filer benefits without officially becoming an Active taxpayer.
- FBR introduced a new policy in the last fiscal year. According to this policy, the list of filers (also known as the Active Taxpayers List or ATL) will be updated on the day following the income declaration filing deadline. The last date for filing tax returns is 30th September each year, so the ATL will be updated on 1st October 2025. All individuals who file their returns within the due date will be considered filers from 1st October 2025.
How to become a Filer? Before and After 1st October 2025
- If someone files their Income Declaration today, they will be considered a late Active Taxpayer only until 30th September 2025. However, if they file the tax return for the fiscal year 2025, they will officially become a filer on 1st October 2025. If they fail to file the 2025 return, their status will be changed to Inactive on that date.
- In summary, to become in the List of ATL, you must first file the 2024 tax return and pay the Rs. 1,000 late filing penalty. Then, ensure you submit the 2025 return on time, before the deadline. Once the deadline passes and the ATL (Active Taxpayers List) is updated, your name will appear, and your status will be changed to Active Taxpayer.
How to become a Filer? When Buying Property or Registering a Vehicle?
If you are a widow, your income is below PKR 400,000, or you are retired, and not legally required to file a return — but still want to appear on the ATL (Active Taxpayers List) for property registration purposes — there’s a legal way to do it.
In such cases, the Registrar’s Office (registration authority) can request FBR to consider that you are not legally required to file a return and thus should be treated as a filer. If FBR does not respond within one month, it will be assumed that the request has been accepted.
Conclusion:
How to become a Filer? Many people become filers after being influenced by the media or property dealers and gain temporary benefits. However, they don’t realize that once you are in the ATL, it becomes mandatory to file an income declaration every year and fulfill several other legal obligations. Therefore, it is advisable to consult a qualified tax consultant before becoming an Active taxpayer, so you can receive accurate and complete guidance.
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