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How to Become a Filer in Pakistan? A Comprehensive Overview of Filing Tax

Written by: Souman Massod
Written by: Souman Massod
Reviewed by: Majid Hussain
Reviewed by: Majid Hussain

How to become a filer in Pakistan? It is a commonly asked question by law-abiding citizens. Tax filing is essential in complying with all the tax regulations and laws relevant to your business. We will discuss, indepth, becoming a tax filer in Pakistan. 

How to Become a Filer in Pakistan
Contents

Tax Filing, What Does It Mean?

Tax filer is any person or a firm who deals with the tax filing responsibilities personally or on behalf of a business, submitting tax returns and payments to the government body, Federal Board of Revenue (FBR). 

How to Become a Filer

The tax filer ensures compliance with tax rules and uses information provided in the tax return after calculating the due tax  

Understanding Tax Filers in Pakistan

A tax filer is a person or an entity in Pakistan that files a tax return with FBR. According to the FBR, the filer calculates the tax against the firm’s total revenue. Furthermore, the tax filers’ duties include registering with FBR, gaining a tax identification number (TIN), and submitting regular tax returns per the law.

Checking Tax Filer Status

Before checking for the tax filer status, ensure you have a good grip on the figures and can file taxes. To check the filer status in Pakistan, proceed according to the following points: 

  • Search for www.fbr.gov.pk  
  • Look for the online services tab and open it 
  • Select Filer Status Inquiry 
  • Enter your NTN (National Tax Number) 
  • Your status will show to you, signifying whether you are a filer, provisional, or non-filer

Getting Your Tax Filer Certification

The following steps will be taken to get tax filer certification from FBR: 

Check the Eligibility Criteria

The eligibility criteria for tax filers are different in some respects. Anyone earning taxable income in Pakistan is eligible for tax filing, which applies to any business or organisation operating in Pakistan.  

Tax Filing Criteria

Register with FBR

After completing eligibility principles, the next step is to register with FBR. The process includes application submission and other legal documents, like National Identity Cards and a copy of the business registration certificate. The application can be submitted online or in person.  

Getting National Tax Number (NTN)

Next comes getting your NTN number, a unique identifier for Pakistan’s tax filers 

What is NTN

Filing Tax Returns

Following the NTN receipt, the next step is to file tax returns regularly with the FBR declaring your income and any due taxes. The tax filing deadline usually ends in June of every year and can be submitted online or in person.  

Pay Due Taxes

Lastly, to get your Tax Filer certification, pay all due taxes promptly and regularly to avoid any interest charges and inconveniences. It can be paid through multiple channels, i.e. through online or mobile banking and at the assigned Pakistani banks.  

Advantages of Tax Filing

With tax filing, there are certain benefits you can enjoy, such as the following: 

  • Law Obedience. With tax filing, you assign obligations to follow and pay taxes. This helps you avoid any penalties, legal consequences, and fines for failing to file taxes.  
  • Improved Creditworthiness. Filing taxes improves creditworthiness and makes getting loans, bank debits, and other financial savings easier.  
  • Access to Government Bounces. Tax filers are entitled to subsidies and tax credits from the government.  
  • Increased Reliability. Tax filers get better credibility for negotiating deals with clients, consumers, and stakeholders.  
  • Better Record-Keeping. Tax filing keeps better records of your income and expenses, helping to utilise your finances more efficiently.  
  • Invest Opportunities. There are more doors with investment opportunities for tax filers.  

Disadvantages of Non-Filers

Non-tax filers face several disadvantages, such as the following:  

  • Legal Penalties. There are serious consequences for Pakistani citizens who avoid tax filing. These include penalties, fines, and even imprisonment. 
  • Loan Availing Difficulty. Non-filers face difficulty in availing loans when they apply for one. They are taken as high risk by financial organisations.  
  • Limited Business Opportunities. In terms of businesses, being a non-filer can limit your growth, creating challenges in opening bank accounts, applying for licences, and conducting other business-related activities.  
  • Financial Difficulties. From fines to additional taxes, non-filers in Pakistan can suffer severe financial difficulties for any due tax or owed taxes.  

Frequently Asked Questions

By visiting the FBR official website and logging into the IRIS online portal, you can file for tax returns. If you are applying for the first time, you must register for your income tax returns.  

You can visit the FBR website and submit your application with the required legal documents. After completing your application, you will receive your NTN, which will be used for all tax-related operations.  

While certain principles must be observed in becoming a filer in Pakistan, it becomes very beneficial in the long run. However, failing to pay taxes can lead to inevitable consequences, putting non-filers at certain discomfort, as discussed above.  

Final Words

There are myriads of the best construction companies in Pakistan working towards the betterment of the country. Today, there is a huge list of construction companies operating in Pakistan, working privately under government jurisdiction to develop the remarkable infrastructure in the country.  

 

Reviewed by:

Experience hones, but constantly embracing learning and versatility is what brings you to the top.  I have had several years of experience behind me regarding sales and team management in a handful of prestigious companies in the country, and even so, I yearn for further professional and personal growth; hence, the various trainings and courses I attended. Read More

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