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How to Become a Filer in Pakistan

How to Become a Filer in Pakistan – 7 Easy Steps [2023]

If you want to run your business successfully in Pakistan without any difficulty then you need to be a tax filer. Being a tax filer in Pakistan is not complicated. By following these crucial steps mentioned in a blog post, you become a tax filer easily.

What is a Tax Filer and its Importance?

A tax filer may be a business owner or sector that files tax returns to the government (FBR) by updating their source of income. It covers organizations, individuals, and sectors. According to the survey, there are 4.2M tax filers in Pakistan. Moreover, for your convenience, we have an online tax calculator tool for accurate tax calculation.

Importance;

  • Tax filer is connected to the government.
  • The government keeps records of businesses and incomes.
  • There is no chance of corruption.
  • Source of a good relationship with government.

 Documents Required for Filer

There are three documents required for the tax filer.

  • Your original ID card.
  • A Gmail address that you use.
  • A phone number was issued on your CNIC.

Who Becomes Filer in Pakistan?

There are two possibilities for becoming a tax filer in Pakistan.

  • If you buy or sell any property. You have to file a tax of about 5% as a non-filer. Being a tax filer you have to file a tax of about 3%
  • If you own a business, organization, or any sort of sector and earn taxable income. You have to become a filer.

If you’re looking to verify your National Tax Number (NTN) online, be sure to check out our comprehensive guide on NTN verification online for step-by-step instructions and valuable insights.

  Steps to Become a Tax Filer

There are 7 steps to becoming a tax filer in Pakistan.

  1. Open your browser and search IRIS (https://iris.fbr.gov.pk/) official website of FBR.
  2. It shows two following options:
  • Login
  • New Registration
  1. Click on the new registration form and place these things:
  • Your full name
  • CNIC Number
  • Cell Number
  • Gmail ID
  • Your address is according to your ID card.
  1. You have to make statements related to your business.
  2. After this, you get your NTN number (National Tax number). It will be your tax filer identity. You have to file your tax from this identity.
  3. After the NTN number, you have to pay a challan of
  4. After 1 hour of paying challan, you can get ATL.

   How to Check Your Filer Status?

By following these crucial steps you may check your filer status.

  • First, you visit the official website of FBR (https://e.fbr.gov.pk/) on your browser.
    • After opening the website you may click on the search taxpayers.
    • It shows the option of an active taxpayer list (ATL) and opens it.
    • Then enter your CNIC and registration number it shows your filer status.

Note:

The limit for tax filers is one year. You have to pay 1000 challan every year.

         Pros of Tax Filer in Pakistan

Following are the pros of being a tax filer in Pakistan.

  1. Legal issues

Being a tax filer in Pakistan, the government keeps whole records of your business. You can’t face any sort of legal issues like corruption etc.

  1. Relief on Properties/Motor Vehicles

Being a tax filer in Pakistan you file a tax on property of 3% instead of 10.5% similarly on cars.

There are tax rates on motor vehicles:

 

Category Rate
Motorcycle / Scooter:
●      Up to 70 cc PKR. 1,000
●      71 to 100 cc PKR. 1,500
●      101 to 125 cc PKR. 2,000
●      126 to 150 cc PKR 2,500
●      Above 150 cc 2% of the values of the vehicles
Tractors, Trucks, Buses, Rickshaws and Taxies 1% of the values of the vehicles
Combined Harvesters, PKR. 300/- each

 

Others:
Not exceeding 1000cc 1%
Exceeding 1000cc but not more than 2000cc 2%
Exceeding 2000cc 4%

 

  1. Transaction Relief
  • On the amount of 50,000 withdrawal, a tax filer files a tax of 3% as compared to a non-filer of 0.6%.
  1. Good Records
  • Filing taxes on an accurate date with the rules and regulations of the government keeps your financial status better. It shows your trustworthiness.
  1. Loan Opportunities
  • Owning a better financial record you can gain loans from banks and investors do not hesitate in investing your business.

       What does Non-Filer Mean?

Non-filer is a  person or entity that does not file a tax return to the government. They work without registering with FBR. They face a lot of trouble.

  Cons of Non-Filers

There are many cons of non-filers:

  1. Legal issues

Non-filers always face legal issues. They pay fines instead of not filing taxes to the government.

  1. Surety

There is no surety about their sectors and businesses. So, be aware of non-filer organizations and entities.

  1. Difficulties
  • Non-filers also go through many difficulties like not getting loans early.
  • Investors did not invest in their business.
  1. Opportunities
  • Being a non-filer, you can’t access more opportunities like a good reputation, and financial status.
  • Non-filers can face serious difficulty during opening a bank account.

When filing your taxes in Pakistan, it’s crucial to be aware of the applicable income tax slabs. You can find detailed information about these tax slabs in our article on income tax slabs in Pakistan.

Conclusion

 In this blog post, We talked about 7 easy steps to become a filer in Pakistan. Tax filers have an edge over non-filers in business. Tax filers become free from legal issues and difficulties. They have a good reputation in society.

Learn more about the process and the importance of withholding tax in Pakistan in our comprehensive guide

4 thoughts on “How to Become a Filer in Pakistan – 7 Easy Steps [2023]”

  1. Pingback: NTN Verification Online - National Tax Number By FBR - Law Consultants

  2. Pingback: How To File Tax Return In Pakistan? - Follow FBR Instructions

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