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How to become tax filer in Pakistan

How to become tax filer in Pakistan

Do you want to know How to become tax filer in Pakistan? So, you are at the right place. Here are some steps which you need to know:

  • Obtaining NTN Number
  • Registration for an unregistered person
  • From filling
  • E-enrolment for Registered person
  • Prepare your wealth statement

Obtaining NTN Number:

To become a tax filer and be included in the active taxpayer’s list (ATL), a person must first determine whether or not they already have an NTN.

If you don’t have an NTN, go to this site and fill out the Registration for Unregistered person form. To log into the IRIS system, fill out the easy form and follow the instructions.

In the draft folder, you will find the “Registration Form.” Please fill out the form and send it in. In about an hour, you will have your NTN.

To become a filer, you must submit your tax return for the 2021 tax year after receiving the NTN.

This is how you can become one.

Registration for unregistered person:

If you’re a first-time user, you’ll need to go to https://royaltax.co/

Please provide the requested information.

A confirmation input (typically an email or SMS) will be issued to validate your account.

To access your account, you will receive a password/PIN. For security reasons, this process may take several days.

You will be directed to the Iris login page, where you must first register if you have not already done so. You can register by selecting “Registration for Unregistered Person” from the drop-down menu.

Form Filling:

A dialogue box will appear when you click the link, prompting you to enter your basic information as indicated.

After submitting the requested information, you will be prompted to verify your email address and phone number with different codes.

You will receive a text with your registration number (same as your ID card number, without the dash or space), password, and pin code once you have submitted your information again and your email and mobile phone have been validated.

You can access your Iris account by entering your registration/CNIC number and password. Save the pin code since you will need it when filing your income tax returns or wealth statement.

E-enrolment for Registered person:

If you already have an NTN but don’t have an Iris username or password, you can get one by clicking “E-Enrolment for Registered Person,” as seen in the image.

After submitting the requested information, you will be prompted to verify your email address and phone number with different codes.

You will receive a text with your registration number (same as your ID card number, without the dash or space), password, and pin code once you have submitted your information again and your email and mobile phone have been validated.

You can access your Iris account by entering your registration/CNIC number and password.

Prepare your wealth statement:

To become a filer, you must submit a wealth declaration and your tax returns.

You can now file your wealth statement once you’ve successfully enrolled and logged in using your Registration No. and password on Iris’ main page.

You will be required to fill out a wealth statement and income tax returns if you are a salaried individual.

How to become a filer? / Obtain NTN from FBR

The NTN (National Text Number) is a one-of-a-kind number produced for each responsible taxpayer. The first and most crucial step is to obtain your NTN number from the FBR (Federal Board of Revenue) to become a filer. You may also generate your NTN number with your smartphone while sitting on your couch. For knowing about NTN Registration, read the article “The best way to online FBR NTN Registration”.

According to the law, individuals and businesses must file tax returns annually with a fixed income of Rs.400,000 or above and become tax filers by FBR. The Pakistani authorities have set the regulation for paying taxes for everyone.

So, now each individual, salaried or anyone from the commercial originalities, has the responsibility to follow the law. They must record their tax returns, pay tax annually by FBR, and become tax filers online. However, it is suggested once a year because it has the lowest GDP.

Filer and Non-filer difference

FBR does the categorization of filers because they have tax filing authorities. Pakistan’s overall population is categorized into two lessons. The Filers and the Non-filers, the first category is for the people who want to become filers. They are the person or the business on the active list of taxpayers.

The other kind of this category is a non-Filer person, so the one who isn’t on the list of the taxpayer will be added to this category. To become the filer by FBR, you need to be the tax filer first. So, for being a tax filer in Pakistan, you need to register yourself with the help of (Royal tax). By working on all these steps, you may know how to become a filer in Pakistan.

How do you know whether you need an NTN number?

Assume your income falls within the range of taxable income, which in itself is 6 lacs per year. You are required to pay a tax or become a filer and must obtain your NTN in order to register as a filer in FBR records.

What is the purpose of owning NTN?

Having an NTN means providing your revenue to the government, which identifies you as a patriotic individual or business.

It aids in the development of trust among investors for a firm since the one who is honest in his dealings will not bail. Businesses that possess NTNs have a better chance of obtaining government projects and contracts. If an NTN holder receives a general designation, he has significant backing because of his NTN.

How to Verify ATL Using SMS or the IRIS Portal:

ATL (Active Taxpayer List) allows you to look up your name. FBR updates this lists every Monday. You can discover your name on the FBR’s official website if you download the entire list. You may also check ATL by SMS:

Using SMS to check ATL:

To check your name through SMS, follow these simple steps:

  • Open the messaging app on your mobile device.
  • Send ATL (with a space) 13-digit CNIC to 9966.
  • To find out the ATL of a business or firm, write ATL (space) 7-digit NTN number and text it to 9966.

It is a straightforward technique of checking by SMS. You may also check using the Online portal and other methods.

Using an online portal to check ATL:

To check ATL through an online portal, in your browser, open a web page of the FBR IRIS portal. There are fields such as CNIC, registration number, and date. Fill in the required data, including the NTN number in the registration number and date fields. After inputting the Captcha code and validating it, the ATL list will appear on your screen.

Role of Pakistan’s Government in the tax filing

Pakistan’s front-line population is estimated to be around two hundred million people. Approximately only 1% of them are active tax filers. People are still not aware of the importance and benefits of becoming a tax filer in Pakistan. Because of a lack of understanding and instruction on how to become a filer, Pakistan has a lower rate of tax filers.

The Pakistani government rewards tax filers with various perks and encourages them to file returns. They are also making efforts and including others in this process as well. People become filers as a result of the awareness and benefits.

Benefits for a filer in Pakistan

  • After knowing how to become a filer in Pakistan? You must need to know about the benefits for tax filers in Pakistan:
  • In the execution process of car tokens, non-filers must pay tax which is approximately 1200 to 30,000, but the applicants are allowed to pay 800 to 10,000.
  • If we talk about real estate purchases, the active taxpayers must pay a 50% lower tax rate than the non-filers. Becoming a tax filer will give you benefits here.
  • As a non-filer contractor, you have to pay 15% as a tax, but the applicants will pay 7.5% using a lump sum.
  • The government lines the non-filer from buying more than 50 lacs, but then if you are a tax filer, you don’t have any limit.
  • Taxpayers are only required to pay half of the keeping fee instead of the whole duty paid by non-filers.
  • A non-filer is barred from claiming a property worth more than PKR 50 Lakh, but persons who frequently document assessment papers are permitted to purchase any property.
  • Non-filer shippers of natural substances would be required to pay 8% on the total import, while citizen merchants would pay 5.5 % on unprocessed substance imports.
  • Pakistani filer the residents, on the other hand, are merely obliged to pay 6% requirements on their firm puts out.
  • In comparison to the 15% duty rate set for charge filers, an absolute of 20% expenditure is accountable for the profits (organizational advantage) of non-filers.

Conclusion

There is a complete guide to become a filer. Paying taxes is one of our duties to our nation, and we should do it as we would any other. Citizens are avoiding paying taxes for a variety of reasons, including a lack of information and a desire to avoid the burden. It is a simple method of registering as a filer. And you’ll be able to call yourself a proud Pakistani.

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