How to Become a Filer in Pakistan: A Step-by-Step Guide
Becoming a filer in Pakistan is essential for anyone who wants to comply with tax laws, avoid penalties, and enjoy the benefits of being a taxpayer. As a filer, your name appears on the Active Taxpayer List (ATL) maintained by the Federal Board of Revenue (FBR). This guide explains the process of becoming a filer in Pakistan and highlights its advantages.
Why Become a Filer in Pakistan?
Benefits of Being a Filer:
- Lower Tax Rates: Filers pay reduced withholding taxes on banking transactions, property transactions, and vehicle registration.
- Legal Compliance: Avoid penalties for non-compliance with tax laws.
- Access to Loans: Banks prefer filers for loan approvals.
- Business Credibility: Enhances your credibility in financial and professional dealings.
Step-by-Step Process to Become a Filer in Pakistan
1. Register with the Federal Board of Revenue (FBR)
To become a filer, you first need to register with the FBR.
For Salaried Individuals:
- Visit the FBR’s IRIS portal.
- Click on Registration for Unregistered Person.
- Fill in your CNIC, mobile number, and email address to create your profile.
- A verification code will be sent to your mobile/email. Enter it to complete the registration.
For Businesses:
- If you own a business, you’ll need to register for a National Tax Number (NTN) through the same portal.
2. Obtain Your NTN (National Tax Number)
Once registered, your CNIC serves as your NTN for individuals. You’ll need this number to file your taxes.
3. Prepare the Necessary Documents
Before filing your return, gather the following documents:
- For Salaried Individuals:
- Salary slips
- Bank statements
- Investment details (if any)
- For Businesses:
- Business income and expense records
- Rental income details (if applicable)
- Bank statements
4. File Your Income Tax Return
Filing your income tax return is the key step to becoming a filer. Here’s how:
a. Log in to the IRIS Portal
Visit the FBR IRIS Portal and log in with your credentials.
b. Submit Wealth Statement
Prepare and submit a Wealth Statement, declaring your assets, liabilities, and income sources.
c. Fill in Income Tax Return Form
Complete the relevant sections for:
- Salaried Individuals: Declare your income and deductions.
- Business Owners: Provide details about business revenue and expenses.
d. Review and Submit
Double-check all entries before submitting your tax return. Once submitted, your name will appear on the Active Taxpayer List (ATL) within a few days.
5. Pay Your Tax Liability
If you owe taxes after filing, ensure prompt payment to avoid penalties. Use one of the following methods to pay:
- Online banking.
- ATM.
- Visit the nearest bank branch.
Common Mistakes to Avoid
- Not Filing on Time: File your tax return before the FBR’s deadline (usually September 30 each year).
- Incomplete Wealth Statement: Declare all assets and liabilities accurately.
- Ignoring Notifications: Respond promptly to any FBR queries about your return.
Frequently Asked Questions (FAQs)
1. What is the cost of becoming a filer?
Registering and filing your return with FBR is free. However, you may incur fees if you hire a tax consultant.
2. Can I become a filer without income?
Yes, even if you have no taxable income, you can file a “nil” return to appear on the Active Taxpayer List.
3. How long does it take to become a filer?
Once you file your return and pay any due taxes, your name will appear on the ATL within 10-15 days.
Final Thoughts
Becoming a filer in Pakistan is not only a legal obligation but also a step toward financial empowerment. By following this guide, you can easily register with the FBR, file your income tax return, and enjoy the benefits of being a responsible taxpayer.
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Take the first step toward becoming a filer today and contribute to a better Pakistan!