How to Become a Filer in Pakistan: A Guide for Salaried Individuals

In a country of 220 million people, only 1% are active taxpayers. Yes, we are talking about Pakistan and these are FBR (Federal Board of Revenue) stats. It is therefore no surprise that every government tries to encourage more people to become active tax payers and offer multiple benefits in return. To avail those benefits, many people search for “how to become filer in Pakistan?”

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• How to Become a Filer in Pakistan – A Guide for Businesses

Here is the process to register yourself with FBR to become a filer. We will also show you how to check your filer status with the FBR. And those benefits that you can receive as a taxpayer are also mentioned below. 

Steps to Become a Filer in Pakistan

Do you know that you can become a filer by yourself without needing anyone else? Well! Here are the steps to become filer online via the FBR online portal. 

*You have to click the save button frequently to save your progress.

Step 1: Filer Registration / Register with FBR (IRIS)

First, visit the FBR website https://www.fbr.gov.pk.

1. Click on the income Tax or IRIS in the section of Online Services. 
2. You will have to choose from 2 options. (we will show you the process of filing return from within Pakistan)
   • Income Tax Return Filing for users within Pakistan
   • Income Tax Return Filing for users outside Pakistan
3. Now, click on the button “ Registration for Unregistered Person”. 
4. Fill all the necessary details and click submit.
5. You will receive codes on the provided phone number (via sms) and email address. Enter both of them in the required sections.
6. Now, your primary registration is completed and you will receive your password via email and SMS. 

Step 2: Get NTN / Complete Registration in FBR-IRIS to Be a Filer in Pakistan

In this step, you need to login on this page https://iris.fbr.gov.pk/public/txplogin.xhtml. 

1. Enter your CNIC (without dashes) in the registration number section and the password received in the password section and click login. 
2. Now click on the Draft button on the left side of the screen. After that, click on the Registration button. 
3. Now, click on the form 181 and it will be highlighted.
4. Click on the Edit button and click on it.
5. You will see 5 sections (Personal, Property, Business, Link, Attachment)
6. Your information will automatically be updated in the personal section as per your registration details. 
7. In the Property section, you need to submit an address (residential, office, etc.) so FBR can contact you on that address when needed. 
   • Click on + sign to add the address.
   • Fill in the details carefully. *Unit number means house number, capacity means ownership, % share means your share of ownership in the property. After filling, click OK.
   • Remember to click on the check box. 
8. Business tab is for those who have business. As we aren’t discussing filing for business personnel, skip it for now.
9. Click on the Link tab and add details about the company or employer where you work. 
   • Select Employer in the Capacity section.
   • Click on the search button in front of the Name section to search and add the name of the business.
   • Enter 100% in the share.
   • Now enter the job starting date in the Start Date section.
   • Now click OK
10. Click on Save button. *You can do this any time during the process.
11. Now, check all the details carefully and click the submit Button and then Yes. Be careful as you will not be able to edit details after submitting. That’s it! Your registration is completed with FBR.
12. In the case of individuals, their CNIC is the NTN.

Step 3: File Income Tax Returns to Become Tax Filer in Pakistan

It is important to register yourself with FBR before filing returns. Once registration is completed, you can file returns by following these steps. 

1. On the IRIS FBR web page, click on the Declaration Tab and then on the “Salary more than 50% and other sources – Classic view” buttons.
2. Now select the period for which you want to file tax returns.
3. In the Employment and Salary Section, add all the details about your salary (annual).
   • If any amount is exempt from tax like medical, etc. add it in the tax exempt column next to the salary. 
   • Add allowances (annual) if receiving in addition to the basic pay. Now click calculate.
4. Click on the Other Sources Tab and then Receipt / Deductions.
   • Add your income from other sources (if any) in the relevant sections. And then click calculate.
5. Now click on Foreign sources.
   • Add income (if any) from the foreign sources (don’t add remittance amount here). And then click calculate.
6. Click on the Agriculture tab and add income from this source (if any). And then click calculate.
7. Click on the Tax Chargeable / Payments button. 
   • Click on Tax reduction (if you are a teacher or researcher, add the reduced tax amount).
   • Click on the Adjustable Tax button and add all the income or advance taxes you have already paid in relevant sections. 
     • For example, you can add income tax paid on salary in the “Salary of Corporate Sector Employees” section. 
     • You can get a tax certificate from your telecom-operator’s franchise to see how much income tax you have paid on using your cell phone. Add that amount in the relevant section here.
     • Add paid income tax amount along with the vehicle token tax (if any).
     • In the same way, add all the income taxes paid in the year. And then click calculate.

Calculation Time

8. Click on the “Final / Fixed / Minimum / Average / Relevant / Reduced Tax” button to add tax paid on profit from bank account, saving certificate, and other. 
   • For example, click on the “+” sign in front of “Profit on debt u/s 7B” to add income tax paid on saving certificate or profit from bank account. Enter the account or certificate number, bank name, and click OK. 
   • Now click calculate.
9. Now, click on the Computations section. It will automatically calculate your tax details.
   • If there is any amount in front of the Admitted Tax section, you will have to pay it before filing returns. (process is explained later in this blog)
   • If there is any amount in front of refundable tax, you can get it refunded from FBR. 
10. Click the Save button.

How to Pay Tax to Become a Filer in Pakistan?

In case you have any amount in the admitted tax section, you will not be able to file returns till tax submission. Here are the steps to pay your tax to file returns.

1. Visit this page https://e.fbr.gov.pk/ePayments/ePaymentInfo.aspx. 
2. Select tax year.
3. Enter CNIC.
   • Your name will automatically be picked up by the system.
4. Select Admitted Tax in the Tax Payment Nature tab.
   • System will pick personal details automatically.
5. Select Admitted Tax in the Tax Payment section.
6. Enter the amount of Admitted Tax in the Amount in Figures section. *Pick the amount from the Return Form.
   • It will automatically convert figures into words.
7. Now select the desired payment mode. We’ll take Cash payment mode as an example.
   • Re-enter the amount. 
8. Enter email address and mobile number.
9. Click the Create button, and the system will show you a check message. Check the details carefully and click the Confirm button. 
10. You will get the option to print Challan. 
    • Print it and pay it in the National Bank (any branch). 
    • You will be given a computerized payment receipt number by the bank.
11. Go to the payment section in FBR-IRIS to enter payment details.
    • Click on + button.
    • Enter the computerized payment receipt number and click the search button.
    • You will see your payment record. Select it and it will be added.

Step 4: File Wealth Statement to Be a Filer in Pakistan

Now is the time to add details about your assets. Here are the steps for the asset declaration.  

1. Login (if you logged out after the previous step) to FBR-IRIS, click on the draft, then click on declaration, after that click on the form and then click edit button. 
2. Click on the Wealth Statement and then click on the Net Assets. Add all of your assets you have till 30 June of the selected year.
   • Add total salary (annual) and amount exempted from tax as added in the income tax section.
   • If you received any asset as a gift, add its amount in the Gift section.
   • If you have taken any loan, add its amount in the Loan section.
   •  Add the total amount of assets like house, cash in bank account, jewelry, etc. in the Others section. 
3. Inflows Section
   • Now add all the annual utility bills (electricity, gas, water, etc.) in the Utilities section.
   • Enter all the approximate annual household expenses in the Household Expenses section.
   • You can add education expenses (self, wife, kids and family, etc.)
   • Add the sum of all the other expenses in the Others section under the inflows. 
4. Outflows Section
   • Enter sum of all the assets in Net Assets Current Year section as added above.
   • Now add the sum of all the assets of the previous year. 
   • Click the calculate button. The Unreconciled Amount must be zero to file the returns. Check all the details before submitting as details cannot be changed after submission.
5. After review, click on the verification tab and enter the 4 digit pin you received at the time of registration. Click on the Verify Pin button then.
6. Now, Click on the Submit button.
7. You have filed tax returns now and become a tax filer.

How to Check Filer Status / FBR Filer Status Check

Wondering how to check filer/non-filer status? Here are 2 ways to verify whether you have become an active taxpayer. 

Method 1:

Type “ATL (space) 13 digits CNIC Number” and send it to 9966. (for individuals only).

To check AJ&K Active Taxpayer status by SMS, follow this step:

Type “AJKATL (space) CNIC (without dashes)” and send it to 9966. (for individuals only)

Method 2:

You can download Active Tax Payers List from this link https://www.fbr.gov.pk/categ/active-taxpayer-list-income-tax/51147/30859/%2071169 and search for your name in it.

Benefits of Becoming a Filer in Pakistan

The following are some benefits for filers in Pakistan:

• Profits and cash withdrawal from banks: Lower rates of tax deduction as compared to non-filers.
• Property buying and selling: Lower tax rate as compared to non-filers.
• Capital gains on sale of securities: Lower withholding tax rate as compared to non-filers.
• Reduction on withholding tax (tax already deducted from your income and gains) when registering and transferring motor vehicles.
• Tax charges on dividend: Lower as compared to non-filers.
• Withholding tax on prize bond winnings: Lower as compared to non-filers.
• You can claim overpaid taxes from FBR.

Examples of Advantages for Filers in Pakistan

Property

Advance Tax on the Purchase of Immovable Property

• For non-filers: 5%
• For filers: 2%

On purchasing a house of value Rs.10,000,000, a filer will pay advance tax of Rs.200,000 whereas the non-filer will have to pay Rs.500,000.

Automobiles

Income Tax on Cars

If you are in Punjab, you can save Rs.20,000 when buying cars of

• Below 1,000 cc engine size
• Above 2,000 cc engine size

*These numbers are obtained from the excise.punjab.gov.pk

That’s it! Though detailed, this is the simplest way to become a tax filer in Pakistan yourself. If you still find it difficult to do it yourself, get the help of tax return filing service providers.

It is important to note that the last date to file income tax return is 30-September of each year. So, don’t wait more to become a responsible citizen.

Would you file your tax returns yourself now? Or still need the services of professionals in this regard? Tell us in the comment section below.

Photos Credits and Sources: www.fbr.gov.pk/, excise.punjab.gov.pk