Becoming a filer in Pakistan is not just about complying with the law—it’s also a smart financial decision. Whether you’re a salaried individual, freelancer, business owner, or property investor, being on the Active Taxpayers List (ATL) can save you from higher taxes and give you access to a number of benefits. In this guide, we’ll walk you through the steps to become a filer in Pakistan, explain the advantages, and address common concerns.
Why It’s Important to Be a Filer in Pakistan
In Pakistan, individuals and businesses are categorized as filers and non-filers. A filer is someone who has submitted their income tax return and appears on the Federal Board of Revenue’s (FBR) ATL. Non-filers, on the other hand, face higher tax rates, limitations in banking transactions, restrictions on property purchases, and more.
Who Should File Income Tax Returns?
Many people believe that only high earners or business owners need to file taxes. That’s not true. Here are the common categories of people who should consider filing:
- Salaried individuals earning above the taxable threshold (currently Rs. 600,000 per year)
- Freelancers and online business owners
- Property owners and real estate investors
- Business entities and entrepreneurs
- Anyone who wants to buy or sell property, register a vehicle, or perform certain banking transactions
Even if your income is below the taxable limit, filing your returns can still offer advantages.
Step-by-Step Process to Become a Filer in Pakistan
Let’s break it down into simple steps:
Step 1: Get Your National Tax Number (NTN)
Your NTN is your identity as a taxpayer. If you don’t have one already, here’s how to apply:
a. Online Registration via IRIS
- Visit FBR’s IRIS Portal.
- Click on “Registration for Unregistered Person”.
- Provide your CNIC number and other personal details.
- You’ll receive login credentials via SMS and email.
b. Required Documents
To register for NTN, you typically need:
- Valid CNIC
- Active email and phone number
- Proof of income (salary slip, business income, etc.)
- Utility bill (for business registration)
Step 2: Login to IRIS and Complete Profile
Once registered:
- Log in to IRIS.
- Go to “Drafts” and fill out your Registration Form 181.
- Provide details such as:
- Personal Information
- Bank Account Details
- Employment or Business Information
- Submit the form for approval.
This step is essential. Without a complete profile, you cannot file your income tax return.
Step 3: File Your Income Tax Return
The next step is to file your income tax return. This can be done once every fiscal year (usually before September 30 or the extended deadline).
a. Prepare the Required Information
You’ll need:
- Income details from all sources (salary, business, freelance, etc.)
- Bank statements
- Tax deduction certificates (if applicable)
- Any foreign income or assets
b. File Return on IRIS
- Select the “Income Tax Return” form in IRIS.
- Enter your income and expenses.
- Declare your assets and liabilities as of June 30.
- Double-check your entries, then submit.
You can also take help from a tax consultant if you’re unsure.
How to Check If You’re a Filer
Once you’ve successfully filed your return, you should appear in the Active Taxpayer List (ATL). Here’s how to check:
- Go to FBR ATL Portal.
- Enter your CNIC or NTN.
- If your name appears, congratulations—you’re now a filer!
Note: It may take a few days to update after filing.
Benefits of Becoming a Filer in Pakistan
1. Reduced Tax Rates
Filers enjoy significantly lower tax rates on:
- Bank transactions
- Property purchases
- Vehicle registration
- Dividend and profit income
2. Ease in Property and Vehicle Transfers
Non-filers face restrictions on purchasing property above Rs. 5 million and vehicles above 1000cc.
3. Better Financial Credibility
Being a filer increases your credibility in the eyes of:
- Banks (for loans or account openings)
- Government institutions
- International businesses
4. Peace of Mind
Compliance with tax regulations means you avoid penalties, audits, and legal complications.
Common Mistakes to Avoid
Incomplete Profile
If your IRIS profile isn’t fully filled, your return won’t be accepted properly.
Misreporting of Income
Make sure to declare all your income sources. Underreporting can lead to penalties.
Missing Deadlines
Filing after the deadline means you won’t appear in the ATL for the current year—even if you file later.
Special Note for Freelancers and Online Businesses
In recent budgets, FBR has turned its attention to freelancers, e-commerce sellers, and online businesses. If you earn money via:
- Fiverr, Upwork, or similar platforms
- Shopify, Amazon, or Daraz
- Affiliate marketing or digital services
Then you should register and file your returns under the correct category. It’s essential to stay compliant, especially with increasing regulations on international payments and remittances.
What Happens If You Don’t Become a Filer
Being a non-filer in Pakistan has serious downsides:
- Up to 100% higher tax deductions
- Ineligibility for certain bank or government transactions
- Risk of penalties from FBR
- Possible audit notices
It’s no longer optional—it’s a responsibility and a financial necessity.
How Much Does It Cost to Become a Filer?
There is no official fee for filing a return on IRIS. However, if you hire a consultant, service charges may range from Rs. 2,000 to Rs. 10,000 depending on complexity.
Final Thoughts
Becoming a filer in Pakistan is a straightforward process if you follow the steps carefully. Not only does it reduce your tax burden, but it also opens doors to safer and smoother financial transactions. In an increasingly digitized tax system, compliance is not just advisable—it’s essential.
If you haven’t already, take the first step today. File your tax return, get listed on the ATL, and enjoy the peace of mind that comes with being a responsible citizen.
Learn how our Online Tax Calculator Pakistan can help you estimate your annual tax before filing.
