What is a Tax Filer in Pakistan? Everything You Need to Know

By Trusty Consulting | Tax & Accounting Experts

What is a Filer?

A “Filer” in Pakistan is a person whose name appears on the Federal Board of Revenue’s (FBR) Active Taxpayers List (ATL). To be on this list, you must have filed your Annual Income Tax Return. In simple terms — if you have submitted your income tax return and your name is on the ATL, you are a Filer.

What is the Difference Between a Filer and a Non-Filer?

A Non-Filer is someone who has not submitted their income tax return or whose name does not appear on the ATL. The Pakistani tax system charges significantly higher withholding tax rates to Non-Filers on almost every major financial transaction — from banking to property to vehicles.

How to Become a Filer 

•  Get your NTN: Register for a National Tax Number (NTN) on the FBR portal. Your CNIC number is required. 
• Activate your IRIS account: Log in to FBR’s IRIS portal at iris.fbr.gov.pk and activate your account.
•  Fill your Income Tax Return: Enter your income details, expenses, and asset declarations in IRIS.
   Submit your Return: Once submitted, your name will appear on the ATL and you officially become a Filer.
  Note: The general deadline for filing income tax returns is 30th September each year. Business owners and traders may have different deadlines — always confirm with your tax consultant.

Benefits of Being a Filer

Lower withholding tax: Filers pay significantly less tax on bank transactions, property dealings, and vehicle registration compared to Non-Filers. For example, on cash withdrawals from a bank, a Filer pays 0% while a Non-Filer pays 0.8%.

Property transactions: Buying or selling property as a Filer means considerably lower withholding tax — this alone can save you hundreds of thousands of rupees.

Vehicle registration: Filers pay up to 50% less token tax on new vehicle registration compared to Non-Filers.

Tax refunds: If excess tax has been deducted from your income, only a Filer can claim a refund. Non-Filers are not eligible.

Dividend income: Filers pay 15% tax on dividends from shares and mutual funds, while Non-Filers pay 30% — double the amount.

Business credibility: Being a Filer strengthens your financial profile and business reputation, which helps when applying for bank loans or entering contracts.

Risks of Staying a Non-Filer

Remaining a Non-Filer leads to higher taxes on every major transaction throughout the year. For anyone involved in property, vehicles, or business, this can add up to significant financial losses annually. FBR also has the authority to send notices and impose penalties on Non-Filers.

Who Should Become a Filer?

Every person with taxable income in Pakistan should file a return. In particular:

• Salaried employees
• Business owners, traders, and contractors
• Property owners who rent or sell real estate
• Freelancers earning income online
  Investors in shares, mutual funds, or fixed deposits

Important: Even if your income is below the taxable limit, filing a return is still beneficial — because you gain all the advantages of Filer status.

Need Help Becoming a Filer?

At Trusty Consulting, we handle your NTN registration, income tax return filing, and ATL enrollment — quickly, reliably, and affordably. Get in touch with us today.

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