How to become a filer in Pakistan?
In Pakistan, tax filers play a critical role in the nation’s economic structure.
A tax filer can be an individual or entity obligated to submit a tax return to the Federal Board of Revenue (FBR).
This encompasses individuals, businesses, trusts, estates, and various other entities required to pay taxes.
Also read: After SIMs, non-filers’ electricity, gas connections to be suspended: FBR chief
The tax return outlines the tax filer’s income and the taxes owed, enabling the FBR to calculate tax liabilities and enforce compliance with tax regulations.
How to become a filer in Pakistan
Here’s is a complete guideline to become a filer in Pakistan:
Checking Your Tax Filer Status
Determining your tax filer status in Pakistan is straightforward. Follow these steps to verify your status:
- Visit the FBR Website: Navigate to www.fbr.gov.pk.
- Access Online Services: Click on the “Online Services” tab.
- Filer Status Inquiry: Select “Filer Status Inquiry” from the list.
- Enter NTN: Input your National Tax Number (NTN), a unique identifier for tax filers.
- View Status: The website will display your current filer status, indicating whether you are a filer, non-filer, or provisional filer.
Becoming a Tax Filer in Pakistan
The process of becoming a tax filer involves several key steps:
- Eligibility Check: Ensure you are required to file taxes, which generally includes individuals earning taxable income, companies, and other business entities.
- FBR Registration: Complete the registration process by submitting an application form along with necessary documents, such as a national identity card or business registration certificate. This can be done in person or online via the FBR’s e-portal.
- Obtain NTN: Upon registration, the FBR will assign you a National Tax Number (NTN), which is used for all tax-related transactions.
- File Tax Returns: Submit regular tax returns to report your income and taxes owed. Returns are typically due by the end of June each year and can be filed online through the FBR’s e-portal or at a tax office.
- Pay Taxes: Ensure timely payment of any taxes owed to avoid penalties. Payments can be made via online banking, mobile banking, or at authorized banks.
Acquiring a Taxpayer Certificate
To obtain a taxpayer certificate, follow these steps:
- Taxpayer Registration: Ensure you are registered with the FBR.
- Log into the FBR Portal: Access the portal at https://iris.fbr.gov.pk and log in.
- Navigate to Taxpayer Services: Find the section related to taxpayer services or certificates.
- Choose Certificate Type: Select the type of certificate you need.
- Provide Information: Accurately fill in the required details.
- Submit Application: Submit your application for the certificate.
- Pay Fees: If applicable, pay the required fees online.
- Verification: The FBR will verify the information provided.
- Download Certificate: Once processed and verified, download your certificate from the portal.
Benefits of Being a Tax Filer
Being a tax filer in Pakistan comes with several advantages:
- Legal Compliance: Demonstrates adherence to tax laws, avoiding penalties and legal consequences.
- Improved Creditworthiness: Enhances your ability to secure loans, mortgages, and other financial products.
- Government Benefits: Eligibility for subsidies and tax credits.
- Credibility: Increases trustworthiness with business partners and stakeholders.
- Record-Keeping: Encourages better financial management.
- Business Ease: Facilitates business operations such as opening bank accounts and applying for licenses.
- Investment Opportunities: Opens doors to new investment prospects.
Consequences for Non-Filers
Failing to file taxes in Pakistan can lead to significant repercussions:
- Legal Penalties: Includes fines, penalties, and potential imprisonment for tax evasion.
- Financial Product Ineligibility: Difficulties in obtaining loans and mortgages.
- Credibility Loss: Negative impact on business relations.
- Benefit Ineligibility: Loss of access to government subsidies and tax credits.
- Limited Business Operations: Challenges in opening bank accounts and applying for business licenses.
- Financial Penalties: Accumulation of fines, interest charges, and additional taxes.
Adhering to tax obligations in Pakistan is not only a legal requirement but also offers numerous benefits, from enhanced creditworthiness to better business opportunities.
Ensuring compliance with tax regulations is essential to avoid legal and financial pitfalls.
