What is a filer?
A “filer” is a person whose name is on the Tax List or whose name is on the tax records if that person does not pay a specific tax due to the fact that he / she does not have property or value but is still on the tax list then he / she is a filer.
Any person present on the list as “Paying Effective Tax” issued by the Federal Board of Revenue shall be deemed a file provider; with the person holding the “payer card”.
This definition is added for the purpose of controlling and differentiating between the two categories specified so that withholding tax is done at different rates. As previously discussed taxpayers’ tax rates may be the same but for the so-called, “Non-filers” they may be at an upgraded level. Articles 23A & 35C are inserted in this regard.
List of Active Taxpayers
The List of Active Payers was updated on the 15th of every month. However, when you consider the problems facing taxpayers, the Taxpayer List is updated weekly. At 12,00 every Sunday the list is updated and uploaded the following Monday.
All banks, government departments and other agents download this weekly list and treat taxpayers as ‘fileers’ and ‘non-filers’ according to this list.
Common Questions from People Who Want to Become a File / Payment Worker
Can a government official earning less than Rs.400,000 be a filer?
Yes it is. An employee whose salary is below the tax threshold can also be on file.
Could a paid person who does not have an NTN number after the 2018 budget become a filer?
What would be the situation for a taxpayer who paid tax from his salary but did not have NTN number after budget 2018, when the limit was increased to Rs.1, 200,000? Now how can he be a filer?
In the Budget 2018 the Government has increased the exclusion tax limit from Rs. 400,000 to Rs.1,200,000. This amendment to the Income Tax Act applies to amounts received after 01.07.2018. This means that, in the tax year 2018 the taxable income limit is Rs.400,000 and will be Rs.1,200,000 at the time of filing the 2019 tax return. Even someone without a source of income in Pakistan can file a tax. Such housewives and Pakistanis for sending their file back to get file grants.
A person earning below the income tax threshold may file a return. For example if your return is Rs.360,000 you can file a return form declaring Rs.360,000 at no charge.
The Concept of Filer and Non-Filer Taxpayer in Pakistan
- The primary condition for becoming a filer, under Pakistan’s Income Tax Ordinance 2001, is that the taxpayer’s name should appear in the “Active Taxpayers List”. Section 2(23A) of the Income Tax Ordinance 2001.
- “Filer” means a taxpayer whose name appears in the active taxpayers’ list issued by the Board from time to time or is holder of a taxpayer’s card.
- This means that only taxpayers whose names appear in the Active Taxpayers List are considered “filers”.
Why it is important for expatriate Pakistanis
- Expatriate Pakistanis often invest in real estate, stock exchange, saving schemes, mutual funds, and prize bonds. They also purchase vehicles and immovable properties. In order to make investments they also have to open an account and make certain transactions.
- As per tax laws in Pakistan, any person who purchases a plot, house or vehicle has to pay double the amount of income tax at the time of purchase if he is not a “filer.”
What are the initial requirements for starting the process of filing your return?
A professional will need the following details/data to make you a filer:
- Scanned copy of your CNIC
- A cell No. of any Pakistani network It is not necessary that the No. is in your name. It may be a No. of your family member of your friend (Not used before for getting NTN).
- Total salary earned during the period 01.07.2018 to 30.06.2019
- Your bank statement/(s) for the period 01.07.2018 to 30.06.2019
- Certificates from your bank branches indicating the tax deductions they made during 01.07.2016 to 30.6.2017.
- Details of assets, owned by you as on 30.06.2017 e.g. value of shares, purchase cost of properties and vehicles etc.