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How To Become A Filer In Pakistan Online

This system is limited to individuals, so a group or companies still have to go through a lengthy process to file their taxes. Here the question arises, “How to become a filer in Pakistan Online?“; this blog will guide you completely step-by-step. 

Read: How to pay token tax online in Islamabad

Pakistan is known to have one of the lowest tax-to-GDP ratios, which tells about the country’s development in a year. The higher the GDP, the more revenue our country generates. It is one of the primary reasons why our government tries to increase the tax base. 

According to the national survey, only 1% of our citizens are tax filers in a population of 220 million. The government categorizes our citizens as Filers and Non-Filers. And with changes made in FBR, the government is trying to address this issue. 

In earlier days, people had to visit the FBR offices to file their income tax, but times have changed. The citizens of Pakistan can now access E-Filing systems to register quickly without needing to visit FBR offices. 

How To Become A Filer In Pakistan Online 

After gathering all the essential documents to become a tax filer, you must start the registration process. The following procedure will give you an insight into becoming a filer. 

1. Generate an NTN Number 

It is necessary to have an NTN Number to become a tax filer. If you do not have an NTN Number, visit the IRIS site and register. On this site, you must fill out a form in the draft folder called “Registration Form.” 

You will get your NTN number in an hour, and then you can start your registration as a filer. Go through the following step-by-step guide to learn the filing process on the FBR IRIS portal.

2. Registration Procedure for Unregistered Person 

If it is your first time filing income tax, then you need to visit the FBR website;

  • When you go to the login page of IRIS, as a new filer, you will select the option of “Registration for Unregistered Person.”  
  • Here, you will provide the information demanded. 
  • After that, you will receive confirmation input via Email or SMS to validate your account. 
  • Then you will receive your password/PIN to log in to your account. 

There might be delays in the processing and generation of your information sometimes due to security reasons. 

3. Procedure of Form Filling 

The link leads you to a form-filling page when you click on it. Here, you are required to submit the demanded details. After the details are submitted, you will receive a confirmation link on your email address for verification. 

Once the email is verified,

  • A Registration Number and 
  • Password
  • Pin code 

These will be allotted to you via SMS. You can easily log in to your IRIS account through these login details. The pin code will be entered when submitting your wealth statement or income tax returns.

4. E-Enrollment Registration Process 

People who already have an NTN can register themselves as a filer through “E-Enrollment for Registered Person” on the portal. You will fill out the form, submit it, and confirm your account via email. 

After confirmation, the receiver will receive his;       

  • Registration number
  • Password
  • Pin code 

He will receive these via SMS, allowing you to log in to your IRIS account easily.

5. Preparation of Income Tax Returns

To register as a filer, you must submit an income tax returns file and a wealth statement. After registering successfully, you can now easily file your wealth statement on IRIS after logging in. 

The salaried people must provide a wealth statement according to Section 116 of the Income Tax Ordinance, 2001. To complete the process, you must have the following;

  • FBR User ID 
  • FBR User Password 
  • Your Source of Income or Income Statement
  • Any Additional Source of Income 
  • Wealth Statement 
  • National Tax Number (NTN)

After entering all the mentioned details, submit them. To confirm whether you are on the active taxpayer list, send your ATL and 13-digit CNIC Number via SMS on 9966. 

Requirements For Becoming A Filer By FBR

According to FBR, there are specific requirements that you need to fulfill before becoming an Active Taxpayer. 

1. Individuals 

As a salaried person, if you are going to file yourself as an Active Taxpayer, you require the following:

  • A cell phone with a SIM that is registered on your CNIC
  • A personal email address that belongs only to you
  • CNIC/ Passport Number/ NICOP 
  • Residential Address
  • Nationality 
  • Name and NTN of Employer in case of Salary Income 
  • In the case of property income, the address of the property
  • You must submit your business name and address if you own a business.
  • Accounting period

2. Companies

If the Company is going to be registered, the Principal Officer of the Company should provide the following details along with the Associations of Persons (AOP);

  • Name of Company or AOP 
  • Business Name 
  • Business Address
  • Business Phone Number 
  • Email Address 
  • Principal Officer of Company Cell Number 
  • Accounting Period
  • Principal Business Activity 
  • Industrial Establishment Address 
  • Company Type (Pvt. Ltd, Public Limited, NGO, Etc.)
  • Registration Date
  • Certificate of Incorporation issued by the Securities and Exchange Commission of Pakistan (SECP) 
  • Certificate of Registration and Partnership Deed, if the firm is registered.
  • In case the firm is not registered, provide Partnership Deed. 
  • In case of a trust, provide Trust Deed.
  • Name, CNIC, and NTN of the representative

In case you are registering a company, then provide the following details of every Director if they own 10% or more shares;

  1. Name 
  2. CNIC/ NTN/ Passport 
  3. Percentage of Shares Owned

Non-Resident Company having Permanent Establishment in Pakistan has to provide the following details; 

  • Name of the Company 
  • Business Address
  • Business Phone Number
  • Accounting Period
  • Principal Business Activity
  • Principal Place Business Address
  • Date of Branch registration and Registration Number issued by the Securities and Exchange Commission of Pakistan (SECP)
  • Name and address of the Authorized Company Representative 
  • Appointment Authority Letter of Principal Officer or Authorized Representative
  • Cell Phone of the Principal Officer or Authorized Representative
  • Email Address of the Principal Officer or Authorized Representative

Non-Resident Company that does not have a Permanent Establishment in Pakistan

will provide the mentioned details;

  • Name of the Company 
  • Foreign Country Business Address
  • Name and Nationality of Trustees or Directors of the Company 
  • Name and Address of Authorized Company Representative 
  • Cell Phone Number of Authorized Representative
  • Authority Letter of Appointment as Authorized Company Representative 
  • Email Address of Representative 
  • Principal Business Activity 
  • Incorporation or Tax Registration Document from concerned foreign regulatory authorities.

Can An Overseas Pakistani Become Filer in Pakistan?

Yes, an overseas Pakistani can undoubtedly become a filer in Pakistan. Moreover, they are taxed according to their Pakistani Income source. 

It means that if they have an income source in Pakistan, they will be taxed according to it. They must pay the tax if they have purchased property here or have other tangible assets. 

And becoming a tax filer in Pakistan means you will pay 50% less tax on purchasing vehicles and enjoy many more perks. 

Conclusion 

Paying tax does not mean that you are a filer. You have to get registered on the FBR IRIS portal to become a tax filer. Whether you are living in Pakistan or are an Overseas Pakistani, having tangible assets means you have to become a filer. 

Becoming a tax filer will provide you with many benefits, which means you will pay less tax than non-filers. It is always best to save yourself from future fraud and spending extra money by being a responsible citizen.

 

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