In this article, we will discuss How to become filer in Pakistan. The term “filer” refers to a taxpayer whose name appears in the Active Taxpayer List (ATL), which is a directory of taxpayers who have filed their income tax return within the due date set by the Federal Board of Revenue (FBR) on March 1st of each year. For instance, the ATL for the tax year 2021 was published on March 1st, 2022, and included the names of taxpayers who submitted their financials before October 15, 2021. If someone has submitted tax returns after the due date, they must pay the applicable penalty to the FBR (1,000 PKR for individuals, 10,000 PKR for AOP, and 20,000 PKR for companies) in order to become a filer.
To become a filer in Pakistan, you need to follow specific steps and meet certain requirements. Here is a step-by-step guide:
- Verify Your Filer Status: To confirm whether you are a filer or not, please visit the FBR website at https://e.fbr.gov.pk/esbn/Verification# and select “Taxpayer Profile Verification.” Enter your CNIC (Computerized National Identity Card) number. If the result shows “NO RECORD EXISTS,” then you need to proceed with the following steps.
- Obtain a National Tax Number (NTN): If you don’t have a National Tax Number (NTN) yet, you need to register for one. You can do this by visiting the nearest Regional Tax Office (RTO) or using the online portal of the FBR. After obtaining your NTN, proceed to the next step.
- File Income Tax Returns: Visit the FBR verification portal again, select “Active Taxpayer List (Income Tax),” and enter your CNIC, NTN, or registration details. If the Filing Status is “In-Active,” it could be due to the following reasons:
- Income Tax Returns Not Filed: If you haven’t submitted your income tax returns, file your wealth statements for the year 2021 first. Then, create a payment challan for 1,000 PKR (for individuals only) and make the payment through Easy Paisa, Jazz Cash, or online. Once the payment is confirmed, you will become a filer immediately.
Income Tax Returns Filed Late: If you have already filed your returns for the year 2021 but after the due date of October 15, 2021, you need to pay a fine of 1,000 PKR (for individuals only).
Advantages of being a filer in Pakistan:
Purchasing a property in Pakistan:
Filing a tax return (commonly known as “filer status”) is beneficial for purchasing a property in Pakistan as Withholding Tax on purchase of property is less than if the person name not appeared in ATL.
Visa Processing and Travel:
Being a filer can facilitate the processing of your visa applications. Some countries may require proof of tax compliance as part of their visa application process. Being a filer with a clean tax record can help streamline the visa process and increase your chances of approval.
Claiming Tax Refunds:
Filing tax returns allows you to claim tax refunds if you have paid more taxes than you owe. This is particularly relevant if you have tax deductions, exemptions, or tax credits applicable to your situation. Filing as a filer enables you to receive refunds promptly.
Withholding Tax Rates for business and other persons.
Filing a tax return (commonly known as “filer status ” is particularly beneficial for business personals as the rates of WHT for Non-Filers are twice as filers. For instance, tax deducted on bank profit is 15% for filers and 30% for Non-Filers.
If you need assistance with income tax returns filing services, we offer them at the lowest fees. Feel free to contact us. if you want to know how to become a filer.