HOW BECOME FILER IN pAKISTAN

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How to become a filer in Pakistan

The government of Pakistan has set the law of paying taxes. Every salaried person or business has
obligations to follow the law, file their tax return, and pay tax annually. According to the FBR (Federal
Board of Revenue), Pakistan is one of those countries in the world that has the lowest GDP (Gross
Domestic Product). It shows the country’s development in a year.
The FBR has categorized the total population in two classes Filer and Non-filer. Filer is the person or
business on the active list of Tax; in short, the regular taxpayer. In the other type, Non-filer is someone
who is not on that list.
The Pakistani government has started to register filers online without any hassle of the queue, waiting,
and other things to make it easier. It is now on the ease of your fingertips and smartphones to become a
filer.

Get NTN from FBR to become a filer: 


NTN (National Text Number) is the unique number generated for the liable taxpayer. To become a filer, it
is the first and necessary step to get your NTN number from FBR. You can also generate your NTN
number while sitting at your couch with the ease of your smartphone.
How to know that you require an NTN number?
Suppose your income falls in the scale of taxable income, which is 6 lacs per year. You are supposed to
pay a tax or become a filer and need to get your NTN to register yourself as a filer in FBR records.
What is the importance of holding NTN? 
Holding an NTN refers to that you are giving your income to the government, which stands you out as a
patriotic individual or business.
It helps to build trust with investors for a business, as the one who is honest in his dealings will not ditch. 
NTN holder businesses have the chance to get projects and contracts from the government. If an NTN
holder got a general designation, he has strong support due to his NTN.
Documents required for NTN number: 
Well, to get your self registered for NTN number, you may need several documents, whether you are an
individual or a business. Given below is the list of required documents. 
Required document for a salaried person: 
1. Copy of your CNIC (National Identity Card)  NOTE: it should be VALID.
2. Copy of paid electricity bill. NOTE: it should be recent, not older than 3 months. 
3. Contact info; Active E-mail, mobile number, landline.
4. Payslip.
5. NTN number of your employer, workplace address, workplace’s e-mail address (it should be
VALID).
Required document for business: 
1. Copy of CNIC (National Identity Card).
2. RECENTLY paid the electricity bill for the business place.
3. Contact info; e-mail, mobile, or landline number.
4. Property papers.
5. Nature of business.
These are the required document you should have before registering yourself for NTN with FBR. Once
you have got these documents, it’s just a matter of clicks, and your NTN will generate.

NTN registration from FBR: 


You have to follow the steps given below to generate your NTN and become a filer in Pakistan: 
Step #1:
To step forward, you have to open an IRIS Portal of  FBR (Federal Board of Revenue), where on the first
page you will see different options, 1 of them is of REGISTRATION for unregistered.  
You can also get on that page through this link: https://iris.fbr.gov.pk/public/txplogin.xhtml.
Step # 2:
By clicking on the option of registration, you will see the appearance of the form asking you stuffs like;
CNIC, address, E-mail, and contact info. You have to fill out the requested information. 
Step # 3:
After filling all the information, you must submit it from the submit button below or beside the form.
Step # 4:
As you submit the form, you will receive a six-digit code on your given email and/or phone number. 
Step # 5:
Take access to that code and fill it in the relevant column. As you fill the code, the process of account
creation is complete here. In a while, you will receive an e-mail consisting of the username and password
from the FBR for a created account.
Step # 6:
Using that username and password, you have to log in to your IRIS account, and by clicking on drafts,
you will see an application named 181 application. Where you have to fill the relevant tabs according to
your account as it is for salaried person’s account or of a business. 
Step # 7:
Fill out the requested information and attach all the documents as mentioned above.
Above mentioned steps are an easy guide to get NTN number from FBR. However, there is an offline
way, but we are focusing on online methods to keep you away from hassles. 
Now it’s time to start your registration as a filer.

Registration as a filer:
Once you have got your NTN number, you will go with the other process of registering yourself as a
filer. By getting an NTN number and creating an IRIS account, you are done with registering in the FBR
system. Now you have to follow simple steps to proceed with the process of becoming a filer. 
Step# 1:
You have to open your IRIS portal account again. 
Step # 2:
Click on e-enrolment for registered persons. 
Step # 3:
A form will appear to ask for some necessary information, such as CNIC, address, and contact info. 
Step # 4:
After filling out the form, you have to submit it by clicking the submit button. 
Step # 5:
As you submit your form, you will receive a code via SMS or E-mail. 
Step # 6:
Now for logging in, you have to enter CNIC number in the field of Registration number and given code in
Password. 
Step # 7:
There, you will see the same draft file as before. And the same form. 
Step # 8:
Fill out all the requested information about the business tab, link tab, and personal tab. And attach all the
documents as mentioned above, again. 
Step # 9: 
Re-check, all the information should be correct and valid. Otherwise, there would be issues in the future.
Step # 10: 
After submitting the form, you will get a confirmation e-mail. And congratulations! You are done with
this process without any hassle and wasting your time. You are now a Filer of Pakistan.
How to check ATL Via SMS or IRIS Portal: 
You can now check your name on ATL. This list is upgraded every Monday by FBR. You can download
the whole list from the FBR official website and find your name there. Or you can check ATL via SMS:
Checking ATL via SMS:
For checking your name through SMS, you have to follow the simple steps: 
 Open your mobile messaging app.
 Type ATL ( give space) 13 digit CNIC and send it to 9966.
 To check the ATL of business or company, you have to type ATL (give space) 7 digit NTN
number and send it to 9966. 
It is the simple process of checking via SMS. You can also check via the Online portal and other ways. 
Checking ATL via Online portal: 
To check ATL through an online portal, you have to open a web page on your browser through a link
below:
https://e.fbr.gov.pk/esbn/Service.aspx?PID=Dbue2kxCaiyqHHkwEvtwFA==
You will find fields like CNIC, Registration number, date. Fill in the given fields, enter NTN number in
the field of the registration number and date. On entering ReCaptcha code and verifying it, you will see
the ATL list on your screen.
The government of Pakistan differentiates between the categories of tax filer and tax non-filer in order to
increase tax revenue. Additionally, in order to penalize those who do not file their income tax returns, a
higher tax was imposed on non-filers by the Finance Act 2014. The tax on non-filers is being tightened
every year to force them to become filers

Advantages being a filer:


The government of Pakistan provides filers with many benefits to encourage their efforts and make the
rest of the population take part and implement this law. Some of the encouraging benefits are listed
below:

 Enlistment in the Active Taxpayers List


 Almost half of the withholding tax as compared with the inactive taxpayers
 5.5% tax on imports (Raw material)
 6% tax on imports (commercial)
 15% tax on dividends
 10% tax on bank and savings scheme profit worth upto Rs. 0.5 million & 15010 on above Rs. 0.5
million
 4.5% tax on sale of goods by persons except companies
 10% tax on provision of services by person except companies
 7.5% tax on contract executed by person except companies
 15% tax on prize money of prize bonds
 12% tax on commission
 Annual token fee of vehicles from Rs. 800/- to Rs. 10,000/
 Withholding tax on vehicle registration from Rs. 7,500/- to RS.250,000/
 No tax on cash withdrawal of more than Rs. 50,000/- from banks
 No tax on bank transactions (cross cheque, pay order, demand draft etc)
 1% tax on purchase of property
 10% tax on sale by auction
 Tax on mobile phone import from Rs. 70/- to Rs. 200/-
 10% tax deduction for payment against advertisement to non-resident person

Disadvantages being Nonflier :


 In accordance with the Finance Bill – 2018, non-filers will no longer be able to purchase or
import motor vehicles, and local carmakers have already implemented and notified the ban.
 Non-filers are prohibited from purchasing a property worth more than Rs 1 lakh. 
 Non-filers pay higher withholding taxes.
 For non-filers, prize bonds are taxed at a higher rate.
 A non-filer’s dividend is taxed at a higher rate.
 Vehicle registration rates are higher due to taxes on tokens

Applicable Taxes for Filers and Non-Filers


Bank Transaction Non filer Filer
Cash Withdrawal Above PKR 50,000 0.50% 0.30%
within a day
Deposit Maintained/Profit/Return on 10% 15%
Account
All bank transfer transaction 0.6% 0%
On onlion mony transfer 0.6% 0%

Advance tax on the purchase of property:


Property Non filer filer
Immoveable property worth over Rs. 4 4% 2%
million

Conclusion:
It is the complete step by step guide for becoming a filer. Paying tax is one of our responsibilities toward
our country, and we should fulfill it as every other responsibility. Citizens are ignoring paying taxes; some
lack the knowledge, and some don’t want to hassle around. It is a hassle-free way to register yourself as a
filer. And become a proud Pakistani.

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