Paying taxes plays an important role in the strong economy of the country. A filer in Pakistan enjoys the benefits after paying the tax, while a nonfiler can get penalties from the Federal Board of Revenue (FBR).
Most people do not even know the benefits of becoming a filer due to a lack of awareness. Most people do not have a proper record of their earnings and profits. So, they need proper guidance and also to avoid any difficulties from the Federal Board of Revenue (FBR).
Here in this blog post, we will discuss what a Filer and a Non-Filer are. Also, we will share the differences between Filer and Non-Filer, so that you can find the benefits of becoming a Filer in Pakistan. Here in this article, we will guide you step by step. How to become a Filer?
What is a Filer and a Non-Filer?
A filer is an individual or a business that has registered with the Federal Board of Revenue (FBR) in order to pay taxes regularly. In return, FBR includes their names in the Active Taxpayers List (ATL). After this, Filers have to pay low tax on heavy banking transactions, also in property dealing, and for vehicle registration.
A Non-Filer is an individual or business that has not registered with the Federal Board of Revenue (FBR) in order not to pay taxes, just because of a lack of awareness. Non-Filers can face many difficulties in every business situation, like Non-Filers have to pay more or heavier taxes than Filers while purchasing any property or in any Banking transactions, or vehicle registrations.
The Federal Board of Revenue (FBR) keeps the checks & balances by updating the Active Taxpayers List (ATL) every week. In the above differences, we have seen how Filers can easily get benefits after submitting their taxes, and how it can save you from the FBR penalties.
Benefits of Becoming a Filer in Pakistan
Lower Tax Rates – Filers pay lower withholding tax on banking transactions, vehicle registration, and property purchases.
Avoid Penalties – Non-filers face higher fines and penalties on financial transactions.
Legal Protection – As a filer, you comply with tax laws and avoid legal complications.
Easier Loan Approvals – Banks prefer tax filers when approving loans, credit cards, and leasing applications.
Property & Vehicle Transactions – Filers can buy high-value properties and vehicles without restrictions.
How to Become a Filer in Pakistan (Step-by-Step Guide)
Becoming a tax filer in Pakistan is completely online through the FBR website. Follow these steps:
Step 1: Get Your National Tax Number (NTN)
To file taxes, you need an NTN (National Tax Number), which can be obtained online.
Steps to Get NTN:
- Visit the IRIS portal: https://iris.fbr.gov.pk.
- Click on “Registration for Unregistered Person”.
- Enter your CNIC number, mobile number, and email address.
- Fill in your personal details, including address, profession, and source of income.
- Submit the form and wait for verification.
FBR will send a confirmation email and SMS once your NTN is issued.
Step 2: Register on FBR’s IRIS Portal
Once you have an NTN, the next step is to register on FBR’s IRIS system, which is used for filing tax returns.
Visit IRIS: https://iris.fbr.gov.pk.
Log in using your CNIC and password (if already registered).
If you don’t have an account, click “Registration for Unregistered Person”.
Enter your details and create a password.
Submit your registration request.
You will receive an email confirmation after successful registration.
Step 3: File Your Income Tax Return
Filing a tax return is the most important step to become a filer. Your return includes your income details, expenses, and tax payments.
Steps to File Your Tax Return:
Log in to IRIS https://iris.fbr.gov.pk.
Click on “Declaration” and select “Income Tax Return”.
Enter your income details (salary, business income, property rent, etc.).
Declare any assets (property, bank accounts, vehicles, investments).
Submit the Wealth Statement (Mandatory for filers).
Review and submit your tax return.
Once your tax return is submitted, you will be included in FBR’s Active Taxpayers List (ATL)!
How to Check Your Filer Status?
After filing your tax return, you can check if your name is in the Active Taxpayers List (ATL).
Steps to Check ATL Status:
Go to FBR’s ATL page https://taxnet.fbr.gov.pk.
Enter your CNIC or NTN number.
Click Search to check your filer status.
If your name is in the ATL, you are officially a tax filer in Pakistan!
FAQs
1. Who needs to become a filer in Pakistan?
These are the people who need to become a filer in Pakistan:
- Salaried employees earning above PKR 600,000 per year.
- Business owners and freelancers.
- Property owners.
- Vehicle owners.
2. How long does it take to become a filer?
It will usually take 24 to 48 hours usually but in further cases:
- NTN Registration: 24-48 hours.
- Tax Filing & ATL Listing: If you file before the due date, you are listed in ATL within 7 days.
3. What happens if I don’t file my tax return?
- You pay higher withholding taxes on banking, property, and vehicles.
- FBR can impose penalties or fines.
- You may face legal action if your taxable income is not declared.
4. Do I need a tax consultant to become a filer?
No, you can register and file tax returns yourself using the FBR IRIS system. However, if your income is from multiple sources, a tax consultant can help you maximize tax savings.
5. How much tax do I need to pay?
Tax rates depend on your income bracket. Here’s a simplified breakdown for salaried individuals (2024):
| Annual Income (PKR) | Tax Rate |
| Up to 600,000 | 0% |
| 600,001 – 1,200,000 | 2.5% |
| 1,200,001 – 2,400,000 | 12.5% |
| 2,400,001 – 3,600,000 | 17.5% |
| 3,600,001 – 6,000,000 | 22.5% |
| 6,000,001+ | 35% |
