The Federal Board of Revenue (FBR), the government agency responsible for collecting taxes in Pakistan, is determined to make sure that every citizen pays their due. Therefore, the FBR has announced that all taxpayers must become tax filers in 2019.

According to a statistic from the Federal Board of Revenue (FBR) Pakistan, only 1% of the total population are active taxpayers. But the government is working on this problem, and we can expect that the number will increase in the future.

The Tax-to GDP ratio is a good indicator of a country's economic stability and development. A higher tax base means more revenue for the government, increasing taxes to improve the fiscal situation further. 

Continue reading this blog, and we will guide you through the process of becoming a tax filer in Pakistan. 

Who Can Apply for Online Registration? 

• When registering through the e-filing system, only individuals can do so. This means that companies and associations of people will have to go through a slightly longer process.
• E-filing is a great way to save time and money. It's not just for income tax returns but also sales taxes.

Get NTN From FBR to Become a Filer

It is the first and necessary step to get your NTN number from FBR to become a filer. You can also generate your National Text Number (NTN) while sitting at home on the couch with the ease of a smartphone.

Giving your income to the government is a great way of showing how much you care about this country. NTN holders have the chance to get projects and contracts from the government. This is because they are honest in their dealings. NTN holders also have strong support because of their NTN.

Requirements of Filing For Tax In Pakistan 

Here are some requirements that you need to fulfill for filing for tax in Pakistan.

• Cell number
• Copy of CNIC
• Total salary
• Bank statements
• The certificate that demonstrates tax deductions
• Complete details of assets like the cost of properties, value shares, etc

Become a Tax Filer in Pakistan 

If you are a first-time tax filer in Pakistan and haven't yet registered yourself for it, then first register yourself on their website.

You need to visit the FBR website and open "file income tax returns." After that, click on logging into Iris and enter all your details, such as:

• CNIC
• First Name
• Last Name
• Current service provider
• Cell number
• Email 

When you provide all the information requested, your phone number and email address verify with separate codes sent to both.

When you’ve been verified and received your registration number, it will be a text similar to CNIC numbers, along with passwords or pins used for verification purposes. 

Login to your Iris account with the CNIC number and password you created earlier. If it's been a while since you logged in, save this pin code so that you don’t face any difficulty submitting income tax returns or wealth statements.

If you don't have the credentials to log into Iris, click on "E-enrollment for Registered Person." You'll have to provide your bank statement and how much taxes are deducted for people who work at a salaried rate. All details related to income in the previous year as well if you're an owner of the property or not. 

How to Know You Are a Tax Filer? 

The Active Taxpayers List is now updated on a weekly basis. We have heard many complaints from taxpayers about not knowing if they were on the list or not, so this will help solve their problems.

The list of taxpayers is updated every Sunday at 12 pm. By Monday, it's already uploaded into the database, and they're placed in one category, either "filers" or “non-filers."

Perks of Being a Tax Filer 

The Government of Pakistan has created many incentives for taxpayers so that more people can become registered.

• The filers can save 10% of their vehicle token tax every year they file taxes.
• The tax imposed on transactions that exceed 50,000 rupees is a 0.3% withholding for filers and non-filers instead of the usual rate, which can be as high as four percent.
• When a tax filer buys an immovable property, they get to pay 50% less than non-filers.
• Less tax on capital gains of securities
• Lower rate of tax on prize bond winnings

The Federal Government has a lot of perks for taxpayers. If your income is more than 6 lacs per year, you have to pay the tax, and if it's less, then there are no taxes due, but filing returns is still mandatory.

Paying taxes is one of the most important responsibilities we have as citizens. There are many ways to register yourself, but this blog will guide you through every step and make it easy for anyone who wants their tax registration certificate.