The government of Pakistan is making further efforts to attract more people to the tax system. It is one thing to pay taxes, but it’s another to file tax returns. All taxpayers should file taxes, according to the Federal Board of Revenue (FBR). This blog will help you to understand the steps involved in becoming a Pakistan tax filer by 2021.
These are the steps to learn how you can become an online filer in Pakistan.
Open the FBR IRIS site, select Registration for an unregistered person, and fill out all required fields.
Reopen the IRIS portal, and choose e-enrolment in the drop-down menu.
Complete the registration process by providing all of your personal information such as your CNIC number and telephone number.
Log in to your account. Fill out the form with your income information. You are now a tax filer.
Send an SMS to 9966 with the ATL (space), 13-digit CNIC number, and verify that you are on the active taxpayer list.
Pakistan has one of the lowest tax-to-GDP ratios worldwide. The country’s progress over the past year is measured by its tax-to-GDP ratio. As a country’s Gross Domestic Product, (GDP), increases, its revenue will rise. The government will therefore try to increase the revenue base. This is what Pakistan’s government tries to do.
The Federal Board of Revenue (FBR), Pakistan estimates that only 1% of Pakistan’s population are registered as active taxpayers. This is unacceptable for a country of 220million people. This is something that the Pakistani government is trying to fix. As the Federal Board of Revenue (FBR), undergoes adjustments, we can expect an increase in active taxpayers.
Who can register online for FBR?
Only one person can register using the e-filing system. Individuals and businesses will have to go through a longer process.
E-filing can only be used for income tax returns. It is not available to file sales tax returns.
How citizens are classified for tax purposes
We won’t bore our readers with GDP and tax statistics. Instead, we will get to the point: how to file. The Pakistani government categorizes its citizens into two groups: filers or non-filers. A filer is an active taxpayer on FBR’s list. Non-filer is someone who is not on the IRS’s current taxpayer lists.
What is the list of active taxpayers? The FBR maintains a thorough list of taxpayers known as the Active Taxpayer List (ATL). The list is updated every week on the first day. Download the list to check if you’re on it. Later in this article, we will discuss how to check your ATL status. Let’s first look at the benefits of filing taxes.
What are the benefits of becoming a Filer?
To encourage more tax filers from Pakistan, the government offers several incentives.
Tax filers pay a lower vehicle token fee than non-filers. If the non-filer vehicle tax is 20,000 then the filer tax will be 10,000.
You must pay a 0.3% withholding tax on transactions exceeding $50,000 if you are a filer. Non-filers must pay a 0.4 percent withholding tax.
Tax filers must pay half the tax when they acquire immovable property.
These are just a few of the many benefits that the federal government offers taxpayers. Now the question is: How much money is actually taxed each year? FBR has developed several different tax slabs. Income tax is required if your annual income exceeds $65,000. If your annual income is below $65,000, you are not required to pay income taxes. Even if you don’t owe taxes, you must submit a return.
How to become a tax filer?FBR Guide: How to Become a Filer
To become a tax filing agent in FBR you will need a National Tax Number (NTN).
How To Get NTN Number In Pakistan? Just click on the link or visit our website and read the article about getting an NTN number in Pakistan. All relevant information will be available to you.
How can you become a filer? Register for an account at the FBR website.
The first step towards becoming a filer is to obtain NTN from FBR. A complete guide to NTN can be found on our website. We’ll cover the whole process again for your convenience.
NTN can be obtained from the FBR
To begin, click the link below to access the FBR IRIS site.
Click on Registration if you are an unregistered individual.
Please fill out the form with all the requested information, including your CNIC number, name, and address.
FBR will send two codes via text message or email.
It would be helpful if you entered the codes in the correct fields.
After you click the submit button, your account will be created.
Sign in now to your account. You will receive your login and password via email or SMS from FBR. Your username and password will be used to log in to your account.
Then, you can go to the draught to fill out the 181 application form.
You must click the Edit button to enter your NTN information.
Fill out the form and attach any necessary documents.
You will receive an NTN from FBR within hours.
What documents are required to obtain an NTN number?
Original copy of CNIC.
Copies of your most recent electricity bill (not older than three months).
Latest payslip.
Contact numbers (mobile & landline) and valid email addresses.
National Tax Number (NTN), Office Address, and valid Email address of the Employer.
You must include details about your business in order to qualify for business NTN.
Once you have received NTN from FBR return to the IRIS site. Follow the steps outlined below.
What are the steps required to become a Pakistan tax filer? Enrolment of a Registered Person
Once you have completed enrollment in the FBR system you will need to reopen your IRIS portal by following the link.
Next, choose e-enrolment to registered persons.
A form will appear on your screen.
Please fill in all required information such as your CNIC Number, name, phone number, valid email address, and phone number.
Next, click the submit button.
FBR will email or SMS you a password once you have completed this e-enrolment registration.
Enter the CNIC number, and password that you received via SMS from FBR into the Registration No area. Log in using the Login button
It will contain the same draught selection. You might consider making some changes to the form.
Complete the Personal, Bank, Property, Link, and Bank account tabs with all the information. Also, attach any relevant papers.
It is important that the information you provide be current and accurate.
Once you click the submit button, this long process will be completed.
FBR will then send you an email confirmation.
You might also be able to see if your name has been added to the Active Taxpayer List. How do you check the Active Taxpayer List? (ATL). To find out, follow the steps below.
How do I check my active taxpayer status?
There are many ways to find out if you are on the active taxpayer’s list. You can find a complete income tax ATL on the FBR’s website. First, download the list and search for your name.
Visit the official FBR site.
Select “ATL income tax” from the drop-down menu. You’ll then see the income tax active taxpayer list, which you can save to your computer.
Check out the list to see if you are on it.
Another way to check the ATL’s condition is by sending an SMS. Sending an SMS can allow you to get status updates. How can you do it? We’ll tell you.
You can check your ATL status via SMS
To check your status via SMS, you must follow these steps.
Open the messaging app for your phone.
Your 13-digit CNIC (ATL) number can be sent to 9966.
Text ATL (space), 7 digits NTN, to 9966 to check the ATL status for an AOP or company.
Online Portal for ATL Status Check
To check your status online, follow the steps below.
Click here to open the portal for checking ATL status
Two spaces will remain vacant for Registration Number. Date.
Next, enter your NTN or CNIC in the Registration No area.
Also, you must fill in the date.
Below the blank area, you will find a captcha code. Click the verify button to fill in the code exactly.
After that, the ATL status will be displayed.
Conclusion
These are just a few ways to check your ATL status. You may also be able to file taxes using the FBR offline system. To complete the task, you will need to engage a tax professional. They will take all your documents to the FBR regional offices and complete the process on your behalf. We recommend you use the FBR Online System. It’s also easy and convenient. It will take time to file. It is not difficult to take a few hours each day to get the filer benefits. It is therefore a simple matter to remain a non-filer here in Pakistan.