Sunday, 17 November 2024
Trending
Lesco Bill Check Online 2022 | How to Get Lesco Duplicate Bill Online How to Check and Verify Vehicle Ownership | Car Registration Online Check 8009 Nadra family verification system | 8009 Nadra online check | 8009 sms Nadra Apple IPhone XS Max PTA and Import TAX in Pakistan | Non PTA price in Pakistan 1500 Prize Bond Draw List 15 August 2022 How to Check Number of Mobile SIMs Issued Against Your CNIC Prize Bond 750 list 2022 | Prize Bond Schedule 2022 750 Prize Bond List 2022 | Prize Bond Schedule 2022 200 Prize Bond Draw List 2022 15th March 2022 – Prize Bond Draw Schedule Dates and Results 2022 US dollar inflated by 4 paisa The Pakistan Stock Brokers Association is now formally operational FBR tax offices renamed Pakistan's current account balance again remains in surplus FBR issued valuation for sale of used cars for purpose of collecting sales tax. FATF takes up Pakistan case tomorrow How to become active tax filer in FBR Rules amended by FBR: Issued time limit for notifying income tax return form FBR launched Maloomat TaxRayApp: Signed MoU with NADRA: Acquired all data of filers & non-filers Federal Board of Revenue (FBR) ceased manual processing of income tax refunds HEC announces Scholarship Programme 2021 for Bachelors, One-Tier Masters, Masters and PhD studies Karachi Tax Bar Association (KTBA) rejected using mobile phone SMS as a legal way to serve tax notices Who is exempt from filing income tax returns ? Anti money laundering Act: monitoring of Jewelers, real estate agents and accountants under strict regulations Tax amnesty scheme for builders and developers ending at December 31 2020 Retailers registered with FBR started obtaining CNIC of consumers on sales above than Rs100,000 FBR directed to issue income tax exemption certificates against gratuity and provident funds Taxation of Builders and Developers e-payment limit of taxes abolished FBR allowed to registered persons to file non-export refund claims FBR extends scope of sales tax on IT Services and IT Enabled Services IT Exports Increased by 40% Govt imposing additional taxes on cars from next week FBR fired the officer for dishonesty The government will audit the Neelum-Jhelum surcharge collection China-Pakistan Economic Corridor project: Chapter added by FBR in the customs law PTBA highlighted issues in Active Taxpayer List Income Tax Credit Proposed for IT Sector Exceptional Rise of Workers Foreign Remittances in February 2021 Third Schedule Goods for Sales tax Rates Under Sales Tax Act, 1990 Federal Board of Revenue Rejected a News Report Published State Bank of Pakistan launches Five Years Islamic banking plan Federal Board of Revenue alerts Taxpayers about Fake and Harmful Emails Customs field formations to remain open on 8th, 10th & 11th May RS. 1500 Prize Bond Result, 17 May 2021 Announced The Punjab Letters of Administration and Succession Certificates Ordinance 2021 FBR Records historic growth again in May, 18% Growth in 11 Months Budget in front but Pakistan and IMF will discuss taxes next week Today Currency Rates in Pakistan Political parties exempted in Budget from filing income tax returns and paying taxes Intelligence & Investigation Inland Revenue Operation against three unregistered units
Meaning by tax filer tax filer benefits and how to become active tax filer in Pakistan
BLOG

All you need to know about Filer and Non-filer in Pakistan

By

All you need to know about Filer and Non-filer in Pakistan

All you need to know about Filer and Non-filer in Pakistan. According to the tax laws of Pakistan, there are many differences between a filer and a non-filer. Common citizens of Pakistan raise many questions about this concept. For instance:

  • what is an income tax filer and a non-filer in Pakistan.
  • What is the process for becoming a tax filer in Pakistan?
  • Why should one become a filer?
  • What are the benefits from becoming a filer?
  • What are the consequences of not becoming tax filer ?

This blog here aims to answer all the detailed questions for the general public.

See also  Tax Incentives granted under tax laws third amendment ordinance 2021

What do you mean by the terms “Income Tax Filer and a Non Filer” in Pakistan?

Under the Income Tax Ordinance 2001, the FBR introduced the concept of the filer and non-filers. Withholding tax is charged at the normal rate in the case of the filer and double tax in the case of the non-filer. Many tax benefits are available to tax filers in Pakistan. Tax filers have to pay reduced taxes on the purchase of property and vehicles. It was introduced to increase the tax net in Pakistan.

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

What is the difference between a Filer and a Non-filer? Non-filer is a person who is not registered with FBR or he has a National Tax Number (NTN) but is not filing tax returns routinely. On the other side tax filer is a person who is registered with FBR and owns NTN and also files tax returns in routine.

Who is an Income Tax Filer?

Filers are those individuals listed on the “Active Taxpayer” list compiled by the IRS. Every taxpayer has to submit his annual income tax return through FBR’s online portal IRIS (https://iris.fbr.gov.pk/public/txplogin.xhtml) to appear on the list of Active Taxpayers, which is known as Active Taxpayer List (ATL). 

See also  Best Grocery Stores in Pakistan

Who is a Non-Filer?

A non-filer is a taxpayer who is neither registered with the Federal Bureau of Revenue (FBR) nor has a valid NTN, or whichever is the case if they are registered with the FBR and have a valid NTN as well as an income tax return, but do not file yearly tax returns.

What does it mean to be a tax filer in Pakistan?

The IRS declares filers as taxpayers who appear on its list of “Active Taxpayers.” To appear on this list, tax filers must submit their annual income tax returns via FBR’s online portal IRIS. FBR considers them as a filer because they file tax returns on an annual basis.

Who is a non-filer in Pakistan?

A non-filer is an individual who has not registered himself with the FBR and thus does not have an NTN number or an NTN number but does not pay his income tax and does not file his annual income tax return. The FBR also refers to them as non-filers because they fail to file tax returns.

Active-Tax-payer-benefits-filer. All you need to know about Filer and Non-filer in Pakistan.

Benefits of becoming tax filer?

The benefits of becoming a filer include the following:

  • Filers has to pay reduced tax rate on purchase of property
  • Lower tax rate on prize bonds winning
  • Withholding tax rate increased by 100% for non-filers, so filer gets benefit.
  • Filers has to pay reduced tax rate on purchase of vehicles
  • On filers, dividend taxes are lower.
  • Seller of goods only have to pay normal rate of tax instead of 100% increase in case of non filer.
  • Provider of services only have to pay normal rate of tax instead of 100% increase in case of non filer.
  • Lower tax rate on bank profits (15% for filer and 30% for non filer)
  • Reduced tax rate is applicable on execution of contracts
  • Lower tax rate on payments to non residents against royalties and fees as compare to tax rate for non filers
See also  Revised Salary Income Tax Rates 2022-23 | Budget Proposals

Disadvantages of being a Non-Filers

There are many disadvantages to being a non-filer, some list is here:

  • Higher tax rates on purchase of property
  • Start of audit proceedings on purchase of property and vehicles if buyer is non filer
  • Higher tax rate on purchase of vehicles 
  • Withholding taxes are higher for non-filers.
  • Tax rates on prize bonds are higher for non-filers.
  • Dividends received by non-filers tax at a higher rate.
  • Due to taxes on tokens, registration rates for vehicles are higher on non-filers.
Newsletter
Subscribe Now

Sign up for  Daily Digest and get the best of News for you.

[contact-form-7 id="11414" title="Contact form 1"]

Tax.net.pk - Your Tax Experts and Consultants

Welcome to Tax.net.pk

Providing Expert Tax Services for Individuals and Businesses

About Us

At Tax.net.pk, we are dedicated to providing comprehensive tax solutions tailored to meet the needs of individuals and businesses. With years of experience in the industry, our team of tax experts is equipped to handle various tax matters, including tax planning, preparation of tax returns, and compliance.

We strive to stay up-to-date with the latest tax laws and regulations, ensuring that our clients receive accurate and reliable advice. Our commitment to client satisfaction and our in-depth knowledge of the tax landscape make us the trusted choice for all your tax-related needs.

Contact Us

For inquiries or to schedule a consultation, please reach out to us: