How to become a Filer in Pakistan?

how to become filer

If you are the citizen of Pakistan, it is your duty to pay your tax. To become a filer in Pakistan, you must have a sim card registered with your own Cnic number, your personal email address, pdf file of Certificate of maintenance of your personal bank account, Evidence of Tenancy/Ownership of business premises in case if you own any business and paid utility bill of business premises which may not be older than 3 months.

Now you must follow these procedures:

  • Obtain an NTN Number (National Tax Number) as this number is required to become a filer in Pakistan.
  • NTN number can be obtained by visiting FBR website and then register yourself by clicking Registration for Unregistered Person tab. Fill the form as it is a simple form. After filling it, it will generate your NTN number.
  • NTN number takes a few hours and you will get a unique NTN number at your disposal but now the government is working on converting your National CNIC as your NTN number.

After getting your NTN number, you will have to submit your tax to become a filer. For this purpose you will have to follow these steps:

  • Once you submit all the details, IRIS will confirm that you have now submitted it.
  • After successful submission, you will receive a confirmation email. Later you will be active on the ATL listing.
  • You can also check it by typing 13 digit CNIC number and sms to 9966 to check whether you are on ATL list or not.

 

How to check FBR filer status in Pakistan?

fbr filer status

You can check your your Active Fbr Filer Status or Active Taxpayer Status through online and manually through SMS service.

Check ATL Status through Online Method:

For online status check, you can check your FBR filer status by simply going to Online Active Taxpayer Status and follow the steps:

Step 1: Under Parameter type select NTN if taxpayer is Business or AOP. If taxpayer is individual you will have to select CNIC option. Enter Cnic no or NTN in Registration No. field according to parameter selected. (The value must be added without hyphen).

ATL Status – Step 1

Step 2: Under Date field, you can select any previous date to check your ATL status for desired date.

ATL Status – Step 2

Step 3: Enter captcha code under Enter code field.

ATL Status – Step 3

After providing all details, click on the Verify button to see the results. After successful verification, result will be displayed on your screen.

Check ATL Status through SMS

In order to check you ATL status, you will have to perform the following simple steps:

  • For individual: Type in message on your phone “ATL (space) 13 digits Computerized National Identity Card (CNIC)” and send to 9966.
  • For Company or AOP: Type “ATL (space) 7 digits National Tax Number (NTN)” and send to 9966.

Check AJ&K Active Taxpayer status by SMS through the following procedure:

  • For any Individual person, you need to type AJKATL (space) CNIC and send it to 9966. The CNIC number shouldn’t have spaced inserted.
  • The person having should type NTN AJKATL (space) 11 digit NTN number and send it to 9966. Also, NTN number shouldn’t have any space inserted between digits.

Check ATL Status by downloading ATL list:

For updated, active taxpayer list please click on the link given:

Active Taxpayer List (Income Tax)

Who is filer and non-filer in Pakistan?

Who is filer and non-filer in Pakistan?

FBR has introduced a holding tax for non-filers to double rates as compared to filers withholding tax under the Income Tax Ordinance 2001 to differentiate between filer and non-filer in Pakistan.

Filer:

A person who owns “Taxpayers Card” also with his name appearing on the “Active Tax Payer” list issued by the Federal Board of Revenue is known as “Filer“.

Non-Filer

A person who is not registered with (FBR) as an active taxpayer and does not files income tax returns annually is known as “Non-Filer”.

Purpose of Differentiating between Filer and Non-Filer:

The basic purpose of differentiating filer and non-filer in Pakistan categories is to Increase the tax base and also to punish those who do not file their tax returns, the Finance Act 2014 imposed higher taxes for non-filer. The tax of non-filers is being tightened every year to force them to become filers.

Benefits of Filer:

  • Filers have to pay less with-holding tax.
  • No restrictions on filers from purchasing or importing motor vehicles.
  • Filers can purchase any property without any restrictions.
  • Filers have to pay fewer tax rates on prize bonds.
  • Filer pays a 15% tax on their dividends.

Disadvantages of Non-Filer:

  • Ban on non-filers from purchasing or importing motor vehicles according to The Finance Bill – 2018 and local carmakers have already implemented and notified it.
  • Ban on non-filers from purchasing a property worth more than Rs one lakh. 4 million.
  • Non-Filers have to pay higher withholding taxes.
  • Non-Filer has to pay higher tax rates on prize bonds.
  • Non-Filer pays 20 percent tax on their dividends.
  • Higher rates on the registration of vehicles and taxes on tokens.

Nowadays, with the advent of information technology (IT) facilities, becoming a filer is not so difficult. The FBR has introduced a number of facilities in this regard which help people to easily become filers and file their tax returns. A person has to register a National Tax Number (NTN) before filing a tax return or registering for an ATL. You can register for NTN by visiting “iris.fbr.gov.pk” without visiting the tax office.

How to check NTN number in Pakistan?

check ntn number

NTN stands for National Tax Number. Hence, in order to check your NTN number, you will have to follow these steps.

  • To check NTN number in Pakistan, click on the “Online NTN/STRN Inquiry” option from the left sidebar.
  • Step 1: Here you will see the new page where you will have to select your relevant option from the drop-down under Parameter type. In order to check your NTN number select the NTN option.
  • Step 2: In the next step, you will have to enter your personal Cnic number under Registration No field.
  • Step 3: Provide captcha code (eg. TfqBMo given in snapshot) against the “Enter code” field.
  • After providing information click the “Verify” button.
  • If the information is valid it shows the results while on the other hand, it shows error/ invalid information/ no record found.

Recommended for you: How to become filer

Fixed Deposits Benefits

if you file the return or become a filer then the Tax deducted by Banks will be lesser otherwise it will mount up.

  • Income on dividend/payment of dividend:
    • Filer – 12.5%, Non-filer – 20%
  • Income:
    • Filer – 10% to 15%, Non-filer – 17.5%
  • Profit on National Savings Scheme or Post Office Savings:
    • Filer – 10%, Non-filer – 17.5% (Over Rs. 5 lacs)
  • Profit on debt paid by banking company:
    • Filer – 10%, Non-filer – 17.5% (Over Rs. 5 lacs)
  • Profit on bonds , certificates, debentures, securities:
    • Filer – 10%, Non-filer – 17.5% (Over Rs. 5 lacs)
  • On extraction of minerals from mines:
    • Filer – 0%; Non-filer – 5%
  • On brokerage or commission, Advertising agents:
    • Filer – 10%, Non-filer 15%
  • Life Insurance Agents (Commission under Rs. 5 lacs):
    • Filer – 8%, Non-filer 16%
  • People not covered in the above two points:
    • Filer – 12%, Non-filer 15%

Salaried Persons Tax Benefits

Most taxpayers do not know about the benefits of becoming a working taxpayer or filer, so they do not file income tax returns due to lack of information. However, they are now paying income tax deducted from their salaries. Taxes for leaders are deducted from the source by their employers. But they still look like a non-filer, if they do not file income tax returns or their name does not appear on the ATL list, it keeps them out of file and even with tax deducted from their employers and they end up either overpaying or high tax eventually. Paid individuals can enjoy many benefits simply by file as they pay their taxes. It is compulsory for all paid people to fill out their tax returns and file, whether they are public servants or private. The biggest loss associated with not filing tax returns is that you lose your refund claim, as taxes are deducted from the purchase.

Save on Imports & Export

For import of raw material, a tax of 5.5% for filers while 8% for non-filers is included. It means that he has imported Pakistani rupees of 20,00,000, the file will pay Rs. 110,000 on the other hand a non-filer would have to pay Rs. $ 160,000 as tax. Importers will have to pay an 8% tax around Rs 160,000 on import of Rs 2 million worth of raw materials and filers pay only 5.5% Rs 110,000 on the same amount as the amount of raw material purchased by the non-filers. Exports will be required to pay 9% of the total amount of Rs180,000 in sales of goods worth $ 2 million in exports. Retail sales tax revenue for consumers is 6% and 9% for non-filers. However, the firms pay only 6% of the work, Rs2,000,000 in exports worth Rs 2 million in their exports. In addition, non-filers will pay 20% more tax on their company profits compared to the 15% tax paid by the file owner. ​

Government Tenders

Taxpayers 10% of the sales tax is owned by government and other companies and non-taxpayers pay 15% on the sale of state-owned goods or other companies. On the basis of contracts, those who do not file pay a 15 percent tax while 7.5% are paid by the filers and pay a 15% tax on the mortgage bond awards and the non-filers pay a 25% tax on the same amount. Preferences in Govt. tenders and saving in taxes. For filers the tax is 7.5 and 15 percent tax for the persons who are non-filers. On auctions tax ratio for both will be: filers – 10 %, for Non-filers – 15 %

Profit from Banking

Non-filers pay 15% tax on banknotes and savings program and 10% on filers, filers pay 4.5% of the assets on public and private companies as compared to filers, who see files pay 9% tax . Filers do not pay tax on bankruptcy (bankruptcy check, payment order, and draft) while non-filers have to pay Rs 600 as tax on each bank transaction. On the basis of contracts, those who file do not pay 15% on the other hand and file 7.5% and filers pay 15% on bond bond awards and non-filers pay a 25% tax on the same amount. Similarly, the filers pay 12% tax on the commission amount and the taxpayers or non-filers pay 15% tax on the same. When all this tax is applied

On withdrawals of over Rs. 50,000On Payment Order, Demand Draft or similar tool reaches more than 25,000On Online Money Transfer by 25,000On addition to tax on the sale of the required amount, payment order etc. All banking activities.

Low Token Tax on Vehicle

The token tax for persons who are filers lies between Rs 800 and Rs 10,000. While token tax for the persons who are  non-filers is doubled between Rs 1200 and Rs 30,000.

Vehicles TypesVehicles CategoriesEngine Capacity/SeatsAmount (in Rs.)
Two/Three Wheeler Vehicles Motorcycle/ScooterUpto 200 cc1,000 (Lifetime)
Motorcycle/Scooter 201 cc to 400 cc 2,000 (Lifetime)
Motorcycle/Scooter401 cc and Above 5,000 (Lifetime)
Four Wheeler Vehicles
Private / Government Upto 1000 cc 10,000 (Lifetime)
Private / Government From 1001 cc to 1300 cc1,500
Private / Government From 1301 cc to 1500 cc4,000
Private / Government From 1501 cc to 2000 cc5,000
Private / Government From 2001 cc to 2500 cc8,000
Private / Government From 2501 and Above12,000
Commercial VehiclesMottor Cab Having Upto 6 SeatsUpto 1000 cc600
Mottor Cab Having Upto 6 SeatsFrom 1001 cc and Above1,000
Public Service VehiclesFrom 8 Seats to 12 Seats200 Per Seat
Public Service VehiclesFrom 13 Seats to 14 Seats250 Per Seat
Public Service VehiclesFrom 15 Seats to 16 Seats300 Per Seat
Public Service VehiclesFrom 17 Seats to 41 Seats300 Per Seat
Public Service VehiclesFrom 42 Seats to 51 Seats400 Per Seat
Public Service VehiclesFrom 52 and Above500 Per Seat
Loading Vehicles / Goods VehiclesLaden weight not exceeding 1250 kg 500
Loading Vehicles / Goods Vehicles Laden weight exceeding 1250 kg but not exceeding 2030 kg 800
Loading Vehicles / Goods Vehicles Laden weight exceeding 2030 kg but not exceeding 4060 kg 2,000
Loading Vehicles / Goods Vehicles Laden weight exceeding 4060 kg but not exceeding 6090 kg 3,000
Loading Vehicles / Goods Vehicles Laden weight exceeding 6090 kg but not exceeding 8120 kg 3,500
Loading Vehicles / Goods Vehicles Laden weight exceeding 8120 kg 4,000