Only 1% of the 220 million individuals in the nation actually pay taxes. Yes, Pakistan is the topic of the article, and these statistics come from the Federal Board of Revenue.
Therefore, it should come as no surprise that every government works to increase the number of active taxpayers by providing a variety of incentives.
The steps for signing up with FBR to become a filer are listed below. We’ll also demonstrate how to use the FBR to check your filer status. Additionally, the advantages that you can get as a taxpayer are listed below.
Steps to Become a Filer in Pakistan
Are you aware that you don’t need anybody else to become a filer? Well! The methods to register as a filer on the FBR online portal are shown below.
*You must constantly click the save button in order to save your progress.
Step 1: Filer Registration / Register with FBR (IRIS)
Go to the FBR website at https://www.fbr.gov.pk first.
- In the Online Services section, select Income Tax or IRIS.
- There are two alternatives for you to select from. (We will demonstrate how to file a return from within Pakistan).
- Filing of Income Tax Returns for Users in Pakistan
- Filing of Income Tax Return for Users Outside of Pakistan
- Now select “Registration for an Unregistered Person” from the menu.
- Complete all the fields and press “Submit.”
- Codes will be sent to the specified email address and phone number through SMS. Add both of them to the necessary fields.
- Your primary registration is now complete, and you will get an email and SMS with your password.
Step 2: Complete Registration in FBR-IRIS to Be a Filer in Pakistan
You must log in at https://iris.fbr.gov.pk/public/txplogin.xhtml for this step.
- Click “Login” after entering your CNIC (without the dashes) in the registration number field and the provided password there.
- Afterward, click the Draft button on the screen’s left side. Click the Registration button after that.
- As soon as you click on form 181, it will get highlighted.
- The Edit button should be clicked.
- There will be five parts (Personal, Property, Business, Link, Attachment)
- According to the specifications of your registration, your information will automatically be updated in the personal section.
- You must include a residential, business, or other address in the Property section so that FBR may reach you there if necessary.
- To add an address, click the plus symbol.
- Input the information precisely. * A unit number means the address of the home; capacity means ownership, and percent share shows your ownership stake in the property. Once completed, click OK.
- Do not forget to click on the check box
8. For individuals with businesses, there is a business tab. Skip it for the time being, as we aren’t talking about filing for business people.
9. Add information about the business or employer where you work by selecting the Link option.
- Within the Capacity section, choose Employer.
- To search for and enter the business name, click the search box next to the name area.
- Put a 100% value on the shares.
- Now fill out the Start Date area with the job’s start date.
- Click OK now.
10. Select the Save button. At any point during the procedure, you can do this.
11. Check the information once more, then click Yes after clicking the submit button. Be cautious since, after you submit the form, you cannot alter the details. You are done now! Your registration is complete with FBR.
Step 3: File Income Tax Returns to Become Tax Filer in Pakistan
It’s crucial to register with FBR before submitting taxes. You can file returns by following these procedures after registering.
- Click on the Declaration Tab and then the “Salary greater than 50% and another sources-Classic view” buttons on the IRIS FBR website.
- Decide on the time frame you wish to file your tax returns for now.
- Include all the information regarding your pay in the Employment and Salary Section (annual).
- Add any tax-exempt amounts, such as medical expenses, in the tax-exempt column next to the pay.
- If you receive yearly allowances in addition to your base pay, add them. Click Calculate now.
- Select the Receipt/Deductions option under the Other Sources Tab.
- If applicable, provide your other sources of income in the appropriate boxes. Click Calculate after that.
- Select foreign sources now.
- If applicable, include foreign source income (but leave out the remittance amount). Click Calculate after that.
- Add your revenue from agriculture by selecting the Agriculture tab (if any). Click Calculate after that.
- The Tax Chargeable/Payments button should be clicked.
- Select Tax Reduction (if you are a teacher or researcher, add the reduced tax amount).
- By selecting the Adjustable Tax option, you can add all of the income taxes or advance taxes you have previously paid in the appropriate areas.
- For instance, you may include income tax paid on salaries under the part titled “Salaries of Corporate Sector Employees.”
- To find out how much income tax you have paid on using your cell phone, contact the local franchise of your telecom provider. Include that sum in the appropriate area here.
- Add the amount of income tax already paid and the car token tax (if any).
- Add all of the year’s income taxes in the same manner. Click Calculate after that.
- To add tax paid on the bank account, savings certificate, and other profit, click the “Final / Fixed / Minimum / Average / Relevant / Reduced Tax” button.
- For instance, to add income tax paid on a profit from a bank account or a savings certificate, click the “+” symbol next to “Profit on debt u/s 7B.” Click OK after entering the account or certificate number and the bank name.
- Click Calculate now.
- Select the Computations section next. Your tax information will be calculated automatically.
- You must settle any outstanding balance in front of the Admitted Tax area before submitting any returns. (The procedure is described more in this blog)
- You can request a refund from FBR for any sum that is in excess of the refundable tax.
- Click on save.
How to Pay Tax to Become a Filer in Pakistan?
You won’t be able to file returns until tax submission if you have any money in the admitted tax area. The processes to pay your taxes and file returns are listed here.
- Visit https://e.fbr.gov.pk/ePayments/ePaymentInfo.aspx for further information.
- Choose a tax year.
- Provide the CNIC number
- The system will automatically select your name.
- In the Tax Payment Nature tab, choose Admitted Tax.
- The system will choose your personal information.
- In the box titled Tax Payment, choose Admitted Tax.
- In the Amount in Figures box, enter the amount of Admitted Tax.
- Select the appropriate amount on the return form.
- It will automatically translate numerical data into text.
- Choose your preferred payment method now. We’ll use the Cash payment method as an illustration.
- Enter the amount again.
- Email and cellphone numbers should be entered.
- When you click the Create button, the system will provide a message to check. Click the Confirm button after carefully reviewing the information.
- It will be possible for you to print Challan.
- Print it and deposit the money at the National Bank (any branch).
- The bank will provide you with a computerized payment receipt number.
- To submit payment information, visit the payment area of FBR-IRIS.
- Press the Plus button.
- Click the search button after entering the computerized payment receipt number.
- You may view your payment history. Once chosen, it will be included.
Step 4: File Wealth Statement to Be a Filer in Pakistan
The time has come to include information about your holdings. The processes for declaring assets are shown below.
- Log in to FBR-IRIS (if you logged out after the last step), choose the draft, then select Declaration, then select Form, and finally select Edit.
- After selecting the wealth statement, select Net Assets. Include all of your possessions as of the chosen year’s 30th of June.
- Total yearly pay as well as any tax-free amounts entered in the income tax section should be provided.
- Add the value of any gifts you have received in the Gift area if you have any assets.
- Add the amount of any loans you have taken in the loan box.
- Add the amount of any loans you have taken in the Loan box.
- In the Others area, add up all your possessions, including your house, bank account cash, jewelry, etc.
- Inflows Section
- Add all yearly utility bills (for gas, water, electricity, etc.) now under the Utility area.
- In the area marked “Household Expenses,” include all approximate yearly household expenses.
- You can include education costs (self, wife, kids and family, etc.)
- Add up all of the additional costs shown under “Others” in the inflows section.
- Outflows Section
- In the Net Assets Current Year box, as previously mentioned, enter the total value of all assets.
- The total of all the assets from the previous year should now be added.
- To calculate, click the button. To submit the returns, the unreconciled amount must be zero. As information cannot be modified once submitted, be sure all the data is correct before submitting.
- Review the information, then select the “Verification” button and input the 4-digit pin you were given upon registration. Then click the Verify Pin button.
- Click the Submit button now.
- You may file taxes now that you’ve submitted tax returns.
How to Check Filer Status / FBR Filer Status Check
Question: How to determine filer or non-filer status? Here are 2 ways to check if you’ve started paying taxes.
- Send the text “ATL (space) 13 digits CNIC Number” to 9966 (for individuals only).
- Follow these instructions to verify AJ&K Active Taxpayer status through SMS:
- Send the text “AJKATL (space) CNIC (without space)” to 9966. (restricted to people)
From this website:https://www.fbr.gov.pk/categ/active-taxpayer-list-income-tax/51147/30859/%2071169 you may obtain the Active Tax Payers List. Then look for your name there.
Benefits of Becoming a Filer in Pakistan
A few advantages for filers in Pakistan include the following:
- Lower tax deduction rates for profits and bank cash withdrawals compared to non-filers.
- The lower tax rate for purchasing and selling real estate compared to non-filers.
- The lower withholding tax rate on capital gains on the sale of securities compared to non-filers.
- reduction in withholding tax (a tax that has already been subtracted from your gains and income) for motor vehicle registration and transfer.
- Taxes on dividends: Less expensive than for non-filers.
- Less withholding tax is applied on prize bond winners than is the case for non-filers.
- You can reimburse FBR for overpaid taxes.