How to Become a Filer in Pakistan: A Comprehensive Guide (2025)

Becoming a tax filer in Pakistan is a crucial step for individuals and businesses who want to comply with tax laws, avoid penalties, and enjoy financial benefits such as reduced withholding taxes. A filer is someone whose name appears on the Federal Board of Revenue’s (FBR) Active Taxpayers List (ATL) after filing their annual income tax return. This guide provides a detailed, step-by-step process for becoming a filer in Pakistan in 2025, covering eligibility, required documents, registration methods, and benefits, along with practical tips and troubleshooting advice. Whether you’re a salaried individual, freelancer, or business owner, this article will help you navigate the process with ease.

Why Become a Tax Filer in Pakistan?

Filing taxes in Pakistan is not only a legal obligation for many but also offers significant advantages. Here’s why you should consider becoming a filer:

• Legal Compliance: Filing taxes ensures you meet the requirements of Pakistan’s tax laws, avoiding fines or legal issues.
• Reduced Withholding Taxes: Filers pay lower tax rates on transactions like bank withdrawals, property purchases, and vehicle registrations compared to non-filers.
• Financial Credibility: Being a filer improves your creditworthiness for loans, visas, or business partnerships.
• Access to Benefits: Filers can qualify for tax exemptions, deductions, and government incentives.
• Contribution to National Development: Paying taxes supports public services like infrastructure, healthcare, and education.

In 2025, becoming a filer is more important than ever due to stricter FBR regulations and increased penalties for non-filers.

Who Needs to Become a Filer?

You are required to file income tax returns and become a filer if any of the following apply:

• Income Threshold: Your monthly income exceeds Rs. 50,000 (or Rs. 600,000 annually) before June 30, 2025.
• Asset Ownership: You own movable or immovable assets (e.g., property, investments, or vehicles) before June 30, 2025.
• Business Owners: You run a business, regardless of its size, including sole proprietorships, partnerships, or companies.
• Freelancers/Self-Employed: You earn income as a freelancer, doctor, lawyer, consultant, or other professional.
• Specific Transactions: You want to reduce withholding taxes on banking transactions, property transfers, or vehicle registrations.
• Visa or Loan Applications: Many embassies and banks require filer status for visa processing or loan approvals.

Even if you’re not legally required to file, becoming a filer voluntarily can unlock financial benefits and ensure compliance with future regulations.

Step-by-Step Guide to Becoming a Filer in Pakistan

The process of becoming a filer involves registering with the FBR, obtaining a National Tax Number (NTN), filing your income tax return, and verifying your status on the ATL. Below are the detailed steps to achieve this in 2025.

Step 1: Check or Obtain Your National Tax Number (NTN)

The NTN is your unique identifier in Pakistan’s tax system, required to file returns and become a filer.

• Check for an Existing NTN:

  1. Visit the FBR IRIS Portal (https://iris.fbr.gov.pk).
  2. Click on “e-Enrolment” or “NTN Inquiry.”
  3. Enter your Computerized National Identity Card (CNIC) number without dashes.
  4. Submit the query to see if an NTN is already registered to your CNIC.
  5. If you’ve lost your IRIS credentials, follow the “Reset Password” guide on the portal to regain access.

• Register for a New NTN:

  1. Go to the FBR IRIS Portal (https://iris.fbr.gov.pk).
  2. Click “Registration for Unregistered Person.”
  3. Fill in your personal details, including:
     • CNIC number (without dashes).
     • Full name.
     • Mobile number (registered to your CNIC for at least 30 days).
     • Email address.
  4. Complete the CAPTCHA and submit the form.
  5. Receive two One-Time Passwords (OTPs) via SMS and email for verification.
  6. Enter the OTPs to verify your identity.
  7. Receive your User ID and Password via SMS and email.
  8. Log in to IRIS, open the “Drafts” section, and complete Form 181 (Application for Registration) with:
     • Personal Tab: CNIC details, contact info, residential address.
     • Property Tab: Details of owned or rented property with a utility bill reference.
     • Bank Account Tab: IBAN, bank name, and account ownership details.
     • Attachments Tab: Upload scanned copies of your CNIC, a recent utility bill (not older than 3 months), and proof of bank account.
  9. Review and submit the form. Your NTN will be issued upon approval.

• Use Case: Essential for new taxpayers or those unsure if they already have an NTN.

• Note: NTN registration is free for individuals and can be done online without visiting an FBR office. For companies or Associations of Persons (AOPs), the principal officer may need to visit a Regional Tax Office (RTO).

Step 2: Gather Required Documents

Before filing your tax return, collect the necessary documents to ensure a smooth process. Required documents vary based on your status (individual, salaried person, or business).

• For Individuals/Salaried Persons:

  • CNIC or NICOP copy.
  • Recent utility bill (not older than 3 months).
  • Salary slips or employer’s NTN and address (for salaried persons).
  • Bank statements for the tax year (July 1, 2024, to June 30, 2025).
  • Details of income sources (e.g., rental income, investments).
  • Proof of expenses or deductions (e.g., charitable donations, medical expenses).

• For Businesses:

  • CNIC of the principal officer.
  • Business registration documents (e.g., incorporation certificate, partnership deed).
  • Business letterhead and address.
  • Utility bill for business premises.
  • Bank account details (IBAN, bank name).
  • Details of shareholders or partners (name, CNIC/NTN, share percentage).

• Use Case: Having documents ready prevents delays during tax filing.

• Note: Create digital copies (PDFs) of documents for easy upload to the IRIS portal.

Step 3: File Your Income Tax Return via IRIS

Filing your income tax return is the key step to becoming a filer and appearing on the ATL.

• Steps:
  1. Log in to the FBR IRIS Portal (https://iris.fbr.gov.pk) using your NTN and password.
  2. Navigate to the “Declaration” section and select “Income Tax Return” for the tax year 2024–25 (covering July 1, 2024, to June 30, 2025).
  3. Fill in the required details, including:
     • Income Details: Salary, business income, property income, or other sources.
     • Deductions: Eligible expenses like charity, medical costs, or Zakat.
     • Tax Payments: Any advance taxes or withholding taxes deducted.
     • Wealth Statement: A summary of your assets (e.g., property, vehicles) and liabilities.
  4. Upload supporting documents (e.g., salary slips, bank statements) in the “Attachments” tab.
  5. Review the form for accuracy to avoid errors.
  6. Submit the return and receive a confirmation receipt (save this for records).
• Filing Deadline: The standard deadline is September 30, 2025, but extensions may be announced. File early to avoid penalties or higher withholding taxes for late filers.
• Use Case: Essential for activating ATL status and enjoying filer benefits.
• Note: For urgent filer status (e.g., for property purchases), file your return early, as ATL updates occur daily until September 30, 2025.

Step 4: Pay Any Due Taxes

If your tax return indicates taxes owed, you must pay them to complete the filing process.

• Steps:
  1. Calculate the payable tax amount using the IRIS portal or an online tax calculator.
  2. Pay via online banking, mobile apps (e.g., Easypaisa, JazzCash), or at a bank branch using the FBR’s PSID (Payment Slip ID) generated in IRIS.
  3. Save the payment receipt as proof of transaction.
• Use Case: Ensures compliance and avoids penalties for unpaid taxes.
• Note: Keep records of all payments for future reference or audits.

Step 5: Verify Your Filer Status

After filing, confirm your name appears on the ATL to enjoy filer benefits.

• Check via SMS:
  1. Type “ATL [space] [your CNIC number without dashes]” (e.g., ATL 1234567890123).
  2. Send to 9966.
  3. Receive a reply confirming your filer status.
• Check via FBR Website:
  1. Visit https://www.fbr.gov.pk.
  2. Navigate to “Active Taxpayers List” > “Individual Search.”
  3. Enter your CNIC number.
  4. Confirm your name appears on the ATL.
• Use Case: Verifies that your filing was successful and you’re eligible for benefits.
• Note: ATL status updates daily for filings before September 30, 2025. Late filers may need to pay an ATL challan penalty (Rs. 1,000 for individuals, Rs. 10,000 for partnerships, Rs. 20,000 for companies).

Benefits of Being a Tax Filer in Pakistan

Becoming a filer offers significant financial and legal advantages over non-filers:

• Lower Withholding Taxes:
  • Bank Transactions: Filers pay 0% tax on demand drafts and payment orders (non-filers: Rs. 600 per transaction).
  • Cash Withdrawals: 0.3% tax for filers on withdrawals over Rs. 50,000 (non-filers: 0.6%).
  • Bank Profits/Savings: 10% tax for filers (non-filers: 15%).
• Property Transactions:
  • Filers pay 1% tax on property transfers (non-filers: 2%).
  • No restrictions on buying property over Rs. 50 million (non-filers: 3% tax on purchases, 10.5% for non-filers).
• Vehicle Registration:
  • Filers pay Rs. 15,000–250,000 in withholding tax (non-filers: Rs. 25,000–400,000).
• Other Benefits:
  • Easier loan approvals from banks.
  • Simplified visa applications for international travel.
  • Access to tax exemptions and deductions.
  • Enhanced credibility for business partnerships.

Tips for a Smooth Filing Process

• File Early: Submit your return before the September 30, 2025, deadline to avoid penalties and ensure timely ATL status.
• Double-Check Information: Verify all details in your tax return to prevent errors that could delay processing.
• Save Receipts: Keep digital or physical copies of your filing confirmation and payment receipts.
• Use Online Tools: Leverage FBR’s tax calculators or consult a tax professional for accurate calculations.
• Monitor Subscriptions: Regularly check the IRIS portal or My FBR App for updates on your tax status.
• Stay Updated: Visit https://www.fbr.gov.pk for the latest tax rates, deadlines, or code changes.

Troubleshooting Common Issues

• NTN Not Found:

  • Ensure you entered your CNIC correctly on the IRIS portal.
  • Contact FBR support at 051-111-772-772 or visit an RTO if no NTN is registered.

• IRIS Portal Issues:

  • Clear your browser cache or try a different browser if the portal is unresponsive.
  • Reset your password online if you can’t log in.
  • Contact FBR’s helpline for technical support.

• ATL Status Not Updated:

  • Wait 24 hours after filing, as ATL updates are processed daily.
  • Pay the ATL challan penalty (Rs. 1,000 for individuals) if filing after October 31, 2024, for the 2024–25 tax year.
  • Verify via SMS (9966) or the FBR website.

• Incorrect Tax Calculations:

  • Use an online tax calculator or consult a tax advisor to ensure accuracy.
  • File a revised return through IRIS if errors are detected after submission.

• Inactive SIM for SMS Verification:

  • Visit a Telenor service center to reactivate your SIM for OTPs.
  • Use an alternate number registered to your CNIC if necessary.

Conclusion

Becoming a tax filer in Pakistan in 2025 is a straightforward process that involves registering for an NTN, gathering required documents, filing your income tax return via the FBR IRIS portal, paying any due taxes, and verifying your ATL status. By following the steps outlined in this guide, you can ensure compliance with tax laws, avoid penalties, and unlock significant financial benefits, such as lower withholding taxes and improved credibility for loans or visas. Whether you’re a salaried individual, freelancer, or business owner, becoming a filer is a responsible and rewarding step toward contributing to Pakistan’s economy. Start today by checking your NTN, filing early, and using the provided tips to navigate the process with confidence.