How to Become a Tax Filer in Pakistan: Step-by-Step [2024]

What is a Tax Filer?

A tax Filer is an individual listed as “Active Taxpayers” by the FBR IRIS. To be on this list, taxpayers must submit their yearly income tax returns via FBR’s online portal IRIS.

Requirements for Tax Filer Registration in Pakistan

Below is the list of requirements to become a tax filer (online FBR registration/e-enrollment) for an individual, company, and salaried person:

Individuals

To register for tax filing, make sure you have the following:

Personal info:

  • CNIC/NICOP/Passport number
  • Active cell phone number
  • Email address
  • Nationality
  • Residential address

Financial info:

Accounting period

Income details:

  • Business income (if applicable): business name, address, and principal activity
  • Salary income (if applicable): employer’s name and NTN
  • Property income (if applicable): property address

Companies

To register for tax filing, the principal officer needs to ensure the following:

Entity info:

  • Company/AOP name
  • Business name and address
  • Accounting period
  • Business phone number and email
  • Cell phone number of the principal officer
  • Principal business activity
  • Industrial establishment or principal place of business address
  • Company type (public limited, private limited, etc.)
  • Date of registration

Registration documents:

  • Incorporation certificate (for companies)
  • Registration certificate and partnership deed (for registered firms)
  • Partnership deed (for unregistered firms)
  • Trust deed (for trusts)
  • Registration certificate (for societies)

Representative info:    Name and CNIC/NTN of the representative

Key stakeholders’ details:

Here are the details required of shareholders:

Name, CNIC/NTN/Passport number, and share percentage of every director.

Salaried Persons

To register for tax filing, make sure you have the following:

Personal info:

  • CNIC/NICOP/Passport number
  • Active cell phone number
  • Email address
  • Nationality
  • Residential address

Income details:  Salary income: employer’s name and NTN

Here’s the deal: Before starting the e-enrollment process, gather all the necessary documents and information.

Who Needs to File Tax Returns in Pakistan?

Individuals:

  • You receive a salary or income from a job
  • You own a business, regardless of its size
  • You’re a freelancer or self-employed (e.g., doctor, lawyer, consultant)
  • You own a property or land

Businesses:

All businesses, regardless of size or type, must file income tax returns

In short, if you earn an income or own a business or property, you should become a tax filer in Pakistan. It includes freelancers, self-employed professionals, and individuals receiving salary income.

How to Get a Taxpayer Certificate in Pakistan

Here is the step-by-step process to download your taxpayer certificate in PDF:

Step 1: Register as a Taxpayer

Go to the Federal Board of Revenue (FBR) website or visit your nearest Regional Tax Office (RTO) to register as a taxpayer in Pakistan.

If you’ve already registered, move on to Step 2!

Step 2: Access the FBR Online Portal

  • Visit the FBR online portal at https://iris.fbr.gov.pk/
  • Log in with your username and password. If you’re new, click “Register” to create an account.

Step 3: Get Your Taxpayer Certificate

  • Once logged in, click the “Certificate” option next to the “Logout” button.
  • Your Taxpayer Certificate will be downloaded automatically!

That’s it! You should now have your Taxpayer Certificate. If you face any issues, feel free to ask!

FBR Registration Fee

I asked most often:

What is the fee to become a filer in Pakistan?

Want to Become a Filer in Pakistan? Here’s What It’ll Cost You!

No fee needs to be a filer in Pakistan.

However, you need to pay an amount of Rs.1000/- provided you don’t submit your annual return on time. 

Why do you need to pay this fee?

It is because you become a non-filer if you don’t file your returns due date by FBR. The fee is fixed to reinstate the filer status 

(Note: A “filer” refers to a person who files their tax returns with the Federal Board of Revenue (FBR) in Pakistan. Becoming a filer can bring several benefits, including a lower tax rate on salary income, exemption from withholding tax on cash withdrawals, and more!)

Who can apply (Eligibility)

You can register/apply for the FBR NTN if you are a:

  • Business Individual (Proprietorship)
  • Association of Persons (AOP) (Partnership)
  • Company
  • Salaried Person

Read Also: Here are the ICONS HowTo guides like how to get CNIC from NADRA.

How to become a tax filer (Step-by-step process)

Here is the simple step-by-step process to be a tax filer in Pakistan:

Step 1: Go to the IRIS Website

The first step in becoming a tax filer in Pakistan is to visit the IRIS website. The IRIS is an online portal and the Federal Board of Revenue (FBR) manages it. You can access it from any device with an internet connection.

IRIS FBR Login
IRIS FBR Login

Click on the New Registration button to proceed with the FBR registration process.

Step 2: Fill Personal and Address Form

Click the New Registration button.

With that, fill out the form with your personal and address information.

The details are your full name, CNIC (Computerized National Identity Card) number, date of birth, contact information, and residential address.

IRIS New Registration Form
IRIS New Registration Form

Step 3: Verify with SMS and Email Code

After submitting your information, you’ll receive a verification code via SMS and email. This code is for confirming your identity and ensuring the security of your application. Enter the code on the IRIS website to proceed with the registration process.

IRIS New Registration Address Information Form
IRIS New Registration Address Information Form

That’s it! You’ve completed the three steps to become a tax filer in Pakistan.

Step 4: Visit the FBR Verification Portal

To verify your filer status through the online portal, follow these simple steps to check online by CNIC or NTN:

Access the Federal Board of Revenue (FBR) verification portal through your web browser. The IRIS portal is designed to help individuals and businesses verify their NTN (National Tax Number) status.

Verification of the FBR Filer Status
Verification of the FBR Filer Status

Step 5: Search NTN or CNIC

To check if you’re a filer, type in your NTN or CNIC number. Ensure you input the information accurately to retrieve the correct verification results.

You can quickly and easily verify your NTN online. This process assures your tax registration status. It is essential for various financial and business transactions.

How to Check Filer Status by SMS

Here is the step-by-step process to check filer status through SMS:

To check if an individual is a registered taxpayer (Active Taxpayer) through SMS, follow these steps:

  1. Type “ATL” plus space and then your 13-digit CNIC No.
  2. Send this message to 9966.

To check the Active Taxpayer status of an Association of Persons (AOP) or a Company:

  1. Type “ATL” plus a space, then your 7-digit NTN.
  2. Send this message to 9966.

Check AJ&K Active Taxpayer status by SMS through:

For Individual, type AJKATL (space) CNIC (without dashes). Send to 9966.
Having NTN AJKATL (space) 11 digit NTN (without dashes). Send to 9966.

What’s Needed to Become a Filer?

Here’s what you need to become a filer online, according to the FBR:

  • Your cell phone with a SIM registered in your CNIC.
  • Your email address.
  • Scanned PDFs of:
    • Certificate showing you have a bank account.
    • Proof of renting or owning your business space, if applicable.
    • Recent utility bill for your business, not older than 3 months if you own one.

Read Also: ICONS Howto Guides and How to get FRC Nadra.

Benefits of Being a Tax Filer in Pakistan

Tax filers in Pakistan enjoy many benefits over non-filers. Here are the main advantages:

  1. Bank Transactions: Filers pay zero tax on demand drafts, cross-checks, and payment orders, while non-filers pay Rs.600 per transaction.
  2. Cash Withdrawals: Filers pay 0.3% tax on withdrawals over Rs 50,000, and non-filers pay 0.6%.
  3. Bank Profit and Savings: Filers pay 10% tax on bank profits and savings schemes; non-filers pay 15%.
  4. Importing Raw Materials: Filers pay 5.5% tax; non-filers pay 8%.
  5. Commercial Exports: Filers pay a 6% duty on exports; non-filers pay 9%.
  6. Supplying Goods: Filers pay a 4.5% duty on supplying goods to the government and companies; non-filers pay 9%.
  7. Contract Payments: Filers pay 7.5% tax on contracts; non-filers pay 15%.
  8. Prize Bonds: Filers pay a 15% tax on prize money; non-filers pay 25%.
  9. Commission Earnings: Filers pay 12% tax; non-filers pay 15%.
  10. Property Purchase: Filers have no restrictions on buying property over Rs 50 million. They pay a 2% tax on property purchases, while non-filers pay 4%.
  11. Property Transfer: Filers pay 1% tax on property transfers; non-filers pay 2%.
  12. Vehicle Registration: Filers pay Rs 15,000 to Rs 250,000 in withholding tax for vehicle registrations; non-filers pay Rs 25,000 to Rs 400,000.
  13. Annual Vehicle Tax: Filers pay Rs 800 to Rs 10,000 in annual token tax; non-filers pay Rs 1,200 to Rs 30,000.
  14. Property Holding Tax: Filers pay half the holding tax compared to non-filers.

Check Active Taxpayer status by downloading ATL

Below is the link to download the active taxpayer list (income tax) :

Active Taxpayer List 2024 (Download PDF Free)

In a hurry, Download a PDF version for easier offline use and sharing with others. Click the below button to get the active taxpayer list of 2024 in PDF (Acrobat Reader)

After downloading it, you can search for the CNIC or NTN No. in the file downloaded. You are a filer if you find your name.

Note: The Active Tax Payer’s List of AJK is to be considered at par with the ATL (Income Tax) after amendment in the Income Tax Ordinance 2001 through the Finance Act 2018.

How long does it take to become a filer in Pakistan?

If you are filing tax returns for the first time, you need to pay a late fee of Rs. 1,000 to the FBR. After paying, your status updates from “Non-filer” to “Filer” within 1 hour.

Conclusion

Don’t miss out on financial benefits! Become a filer in Pakistan today.

Take control of your finances with our simple guide. Secure your future and access exclusive opportunities.

Start your journey to financial empowerment now!

FAQs (FBR Registration as Filer)

What is NTN in Pakistan?

An NTN stands for National Tax Number. It’s like an ID for taxpayers. With NTN, you can file taxes and conduct financial transactions. Businesses and individuals need to earn a certain income.

What is FBR?

FBR stands for Federal Board of Revenue. It’s the government agency responsible for collecting taxes in Pakistan. FBR ensures that individuals and businesses pay their taxes accurately and on time. It plays a crucial role in the country’s economic development by generating revenue for government operations.

What is a taxpayer registration?

An individual, company, association of persons (AOP) or a foreign national is considered registered when they are e-enrolled to the Iris portal. E-enrollment with FBR provides you with an NTN or Registration Number and password.

How often does ATL Update?

FBR publishes an ATL every financial year on the 1st of March. And it remains valid up to the last day of February of the next financial year.

For example, the Active Taxpayer List for Tax year 2023 was published on 1st March 2024 and will be valid till 28th February 2024. Similarly, the Active Taxpayer List for Tax year 2022 will be published on 1st March 2023 and will remain valid till 28th February 2024.

The Federal Board of Revenue (FBR) updates the ATL every Monday by uploading it to the website.

What is Active Taxpayer List (ATL)?

The Active Taxpayer List (ATL) is a central record of online Income Tax Return filers for the previous Tax Year.

People who can get a refund:

a. Manufacturers or exporters who don’t charge sales tax on their goods.

b. People who buy taxed materials to make goods are taxed at 0%.

c. Those who have extra tax paid in 3 months. d. People who use taxed materials for goods are exempt from local tax.

e. Anyone who paid tax by mistake.

f. Anyone who paid tax because the government asked, but then the request is cancelled by a court or authority.

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