How to Become Tax Filer in Pakistan under 24 Hours

According to the FBR (Federal Board of Revenue), 99% of Pakistanis don’t pay taxes. Around 2.2 million people are on the Active Taxpayers List (ATL). Countries around the globe provide exclusive benefits and tax breaks to their taxpayers. So, this is a guide for you to become a tax filer in Pakistan to enjoy those benefits and perks given by the government.

First, the four magic steps to follow to become a filer. Next, you will discover the benefits of becoming a filer in Pakistan and the disadvantages of being a non-filer. After that, a way for overseas Pakistanis to file their tax returns. So, tune in till the end, and don’t forget to read the FAQs at the end if you have questions.

Note: If you earn less than Rs 50,000 per month, you are not liable to pay taxes in Pakistan.

Steps to Become a Filer in Pakistan

Here are the four steps to becoming an active taxpayer in Pakistan.

1. Registration with FBR (IRIS)

Firstly, go to the official site of FBR and follow the steps below:

• Chose the Income Tax(IRIS) option under the Online Services section.
• Then, choose the New Registration option.
• Fill in all of the required details under the Basic Information and Address Information sections and click submit.
• Now, you will receive a code on both SMS and email.
• Enter these codes in their respective fields.
• Congrats, initial registration is now completed. Shortly, you will receive your password, PIN, and Registration No. through SMS on your phone number or your email.

2. Get NTN Number to Become a Tax Filer In Pakistan

To get your NTN Number, you have to log in to FBR IRIS Portal: https://iris.fbr.gov.pk/public/txplogin.xhtml

• After you logged in, select the draft and choose the 181 application form
• Then, click the edit button
• Now, just fill in all the black fields with all the required details and documents (CNIC, Electricity Bill, Contact Number, etc)
• You will receive your NTN in a few hours via email or phone number
• If you are filing taxes as an individual, your CNIC is your NTN

3. How to get e-Enrollment for FBR Registered Person

For e-Enrollment, go to the IRIS Portal again and search for the e-Enrollment button.

• A short form will pop up on the screen
• Fill the form with the required details i.e. CNIC, Cell Number, Email
• After that, enter the captcha and press submit
• You will get your password through SMS
• Then edit the form in the draft and enter the details required for the Business, Personal, Property, Link, and Bank tabs. Don’t forget to attach the required documents.
• Check thoroughly to ensure that the details are correct and press submit button.
• You will receive a confirmation email from the FBR shortly.

4. File Wealth Statement

A wealth statement is crucial for declaring your assets to the government. You must follow these steps to get done with your wealth statement.

• Choose Wealth Statement and click Net Assets. After that, fill in the assets you have till the 30th of June of the selected year.
• Fill in all the assets detail carefully.
• Now, go to Inflow Section and Outflow Section and fill them with the required information.
• Now, double-check it and go to Verification Tab and enter the 4-digit pin you got through email from the FBR.
• After that, submit it and now you filled in your tax returns. It means you have become a tax filer in Pakistan.

If you want to check your Active Taxpayer Status, read the below methods to find it.

How to Check ATL Status/ Active Filer Status In Pakistan

The Federal Board of Revenue has made it easy for citizens to check their ATL staus or filer status within minutes. Here are the three ways by which you can check your Active Taxpayer List status:

1. Check ATL Status through Online Portal
   • First, go to the ATL Online Portal and choose Active Taxpayer List (Income Tax) under the Inland Revenue section.
   • There, you will see four blank fields. Choose Parameter Type from the options (CNIC, NTN, Passport No., Reg/Inc. No.).
   • Then, fill in Registration No. field by typing NTN (without check digit) or CNIC (without dashes)
   • After that, select the date and enter the captcha code respectively.
   • Click verify and you will be able to see your ATL status.
2. Check Active Taxpayer Status by Downloading ATL
   • Go to the FBR website
   • Search for ATL List and download it into your system
   • After that, you have to manually search for your name on the list
3. Check FBR Filer Status through SMS
   • Send the text “ATL (space) 13 digits Computerized National Identity Card (CNIC)” to 9966 for checking your status
   • If you are an AJ&K citizen, then to check your status type AJKATL (space) CNIC (without dashes) to 9966 for finding your active status in the FBR.

What are the Benefits of Becoming a Tax FIler in Pakistan?

Statistics by OECD revealed that the tax-to-GDP ratio of Pakistan was 10% in 2019 and increased by 0.4% in 2020, which is 10.4%. So, to increase that percentage, the FBR and the Government of Pakistan provide perks and benefits to the individuals who file their taxes. Below is a list of some major advantages:

• Entry into the ATL (Active Taxpayers List)
• No tax on bank transactions (pay order, demand draft, cross cheque, etc)
• Almost half tax as compared to inactive taxpayers
• 1% tax on the purchase of property
• No tax on cash withdrawals of more than Rs 50,000 from banks

Disadvantages of Being an Inactive Taxpayer

While the advantages of being an active tax filer appear appealing, the disadvantages of inactive taxpayers are quite severe. Below are some of the major disadvantages of not being on the ATL.

• No place in the Active Taxpayers List
• 0.6% tax on bank transactions (pay order, demand draft, cross cheque, etc)
• Almost double tax rates compared to the taxpayers
• 2% tax on the purchase of property
• 0.6% tax on cash withdrawals of more than Rs. 50,000 from banks

This is the full guide you can follow to become a tax filer in Pakistan within 24 hours without the need for professionals or a tax filing agency. You can also become a filer by hiring a professional and letting him do all the paperwork in the FBR office. However, you should become a taxpayer because you get a lot of perks and benefits that a non-filer can’t take advantage of. Moreover, you can become a filer whether you are a salaried person, a student, an overseas Pakistani, or you earn below the tax bracket. So, be a responsible citizen and file our taxes. In the end, it is a win-win situation for both the Government and the taxpayers.

Do let us know if you have any questions concerning the topic in the comment section.

FAQs