The government of Pakistan has divided its citizens into two categories, a filer, and a non-filer. A filer is a person who is authentically enlisted in the active taxpayer’s list by FBR. A non-filer is a person who is not enlisted in the list of active taxpayers. Now the question is how to become a filer in Pakistan? Well, don’t worry. We are going to solve this problem in our article today.
Steps to Become a Filer in Pakistan
- The first step to becoming a filer in Pakistan is to get a National tax number (NTN). NTN number is actually 13 digits of your CNIC Number but remember this is for individuals.
- In order to get your NTN number from FBR, you have to open the IRIS FBR Portal. If you are an unregistered person, register yourself by clicking registration for an unregistered person.
- They will ask you to submit a few details such as name, CNIC number address, etc. Fill out all information they ask you.
- Once you submit your details you will receive verification codes on your number or email, enter the codes in the relevant fields and you will have your account.
- Use the provided username and password from FBR via email to log into your account.
- If you are already registered, click e-enrollment for a registered person and fill out the form with relevant documents.
- Once you create your account go to drafts and click edit on the 181 application form. Enter your NTN details. Now enter the information and attach the relevant documents.
- That’s all. Now you have to wait a few hours to get your NTN from FBR.
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How does an Overseas Pakistani become a Tax Filer?
To become a filer as an overseas Pakistani, please follow the above-mentioned steps. Once you are registered in IRIS FBR: Click “declaration” and open form no. 114(1), (Return of Income filed voluntarily by Non-Resident Pakistan-origin person having no Pakistan-source income).
If you have any source of income from Pakistan and you are eligible as well then go for the normal form of section 114. Enter your status as a resident or a non-resident depending on the time you have spent during the fiscal year.
In the relevant head of income, enter the income you have made from a Pakistani source. Moreover, enter foreign income as well in the form. But it’s necessary to know that Overseas Pakistanis are not required to file a statement of Wealth along with the Return to enjoy Filer status.
Who has to pay tax in Pakistan?
As per law, all the citizens of Pakistan have to pay tax on their local and foreign-source income only if the income exceeds from taxable income limit. Besides residents, overseas Pakistanis also have to pay taxes but they have to pay on their Pakistan Source income only.
What is Taxable income for salaried and businessmen in Pakistan?
If you are making up to six figures per year you have to pay income tax. But if your earnings are less than six figures per year you might not be liable to pay taxes. In both cases, you must have to become a filer.
If your income is not taxable, you still have to file a return without paying taxes.
What are the Benefits of being a filer in Pakistan?
Becoming a filer in Pakistan provides various benefits that encourage more people to become a filer as well. On every transaction of up to 50,000, a filer has to pay 0.3% of withholding tax while a non-filer pays up to 0.4%.
FBR provides benefits in import and export to a filer, while importing raw materials a filer pays 5.5% tax while a non-filer pays 8% tax. Similarly while performing commercial exports, a filer pays 6% duty but a filer pays 9%.