How to Become a Tax Filer in Pakistan for Salaried Persons: A Comprehensive Guide

Becoming a tax filer in Pakistan is a vital step for salaried individuals to comply with tax regulations, avoid penalties, and access financial benefits such as reduced withholding taxes. As a salaried person, registering as a filer with the Federal Board of Revenue (FBR) and appearing on the Active Taxpayers List (ATL) can save you money on transactions like bank withdrawals, property purchases, and vehicle registrations. This article provides a detailed, step-by-step guide on how salaried individuals can become tax filers in Pakistan in 2025, including eligibility, required documents, registration methods, benefits, and practical tips to ensure a smooth process.

Why Salaried Persons Should Become Tax Filers

Filing taxes as a salaried person in Pakistan offers significant advantages, even if your income falls below the taxable threshold. Key reasons include:

• Legal Compliance: Ensures adherence to Pakistan’s tax laws, avoiding fines or legal issues.
• Lower Withholding Taxes: Filers pay reduced tax rates on banking transactions, property transfers, and vehicle registrations compared to non-filers.
• Financial Credibility: Filer status enhances eligibility for loans, credit cards, and visa applications.
• Tax Refunds and Deductions: Claim refunds for over-deducted taxes or deductions for expenses like charity or medical costs.
• Contribution to Society: Taxes support public services like infrastructure, healthcare, and education.

With stricter FBR regulations in 2025, becoming a filer is essential for salaried individuals to minimize financial burdens and maintain compliance.

Who Needs to File Taxes as a Salaried Person?

As a salaried person, you are required to file an income tax return and become a filer if:

• Income Threshold: Your monthly income exceeds Rs. 50,000 (or Rs. 600,000 annually) before June 30, 2025.
• Withholding Tax Deductions: Your employer deducts taxes from your salary, requiring you to file to claim adjustments or refunds.
• Asset Ownership: You own assets like property, vehicles, or investments before June 30, 2025.
• Specific Transactions: You want to reduce withholding taxes on banking, property, or vehicle transactions.
• Visa or Loan Applications: Banks and embassies often require filer status for loan approvals or international travel.

Even if your income is below the taxable threshold, voluntarily filing can qualify you for ATL benefits and prevent higher non-filer tax rates.

Step-by-Step Guide to Becoming a Tax Filer for Salaried Persons

The process involves obtaining a National Tax Number (NTN), filing your income tax return through the FBR’s IRIS portal, paying any due taxes, and verifying your ATL status. Below are the detailed steps tailored for salaried individuals in 2025.

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

The NTN is your unique tax identifier, required to file returns and appear on the ATL.

• 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 (e.g., 1234567890123).
  4. Submit the query to check if an NTN is registered to your CNIC.
  5. If you’ve lost your IRIS credentials, use the “Reset Password” option and follow the prompts to recover access.

• Register for a New NTN:

  1. Go to the FBR IRIS Portal (https://iris.fbr.gov.pk).
  2. Select “Registration for Unregistered Person.”
  3. Provide your details:
     • CNIC number (without dashes).
     • Full name as per CNIC.
     • 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, go to 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 (e.g., electricity or gas bill).
     • Bank Account Tab: IBAN, bank name, and account ownership details.
     • Attachments Tab: Upload scanned copies of:
       • CNIC (front and back).
       • Recent utility bill (not older than 3 months).
       • Proof of bank account (e.g., bank statement or passbook).
  9. Review and submit the form. Your NTN will be issued upon approval (typically within 1–2 days).

• Use Case: Essential for first-time filers or those unsure of their NTN status.

• Note: NTN registration is free for individuals and can be completed online. Keep your User ID and Password secure for future use.

Step 2: Gather Required Documents

Salaried individuals need specific documents to file their tax return accurately. Collect the following:

• Mandatory Documents:

  • CNIC or NICOP copy (front and back).
  • Recent utility bill (electricity, gas, or water, not older than 3 months).
  • Salary slips for the tax year (July 1, 2024, to June 30, 2025).
  • Employer’s NTN and address (found on payslips or HR documents).
  • Annual withholding tax certificate (Form-A or Form-B) from your employer, detailing taxes deducted from your salary.
  • Bank statements for the tax year, showing salary credits and other income (e.g., bonuses or investments).

• Optional Documents for Deductions:

  • Proof of charitable donations (e.g., receipts from registered organizations).
  • Medical expense receipts (for eligible deductions).
  • Zakat payment proof (if applicable).
  • Details of other income sources (e.g., rental income, dividends).

• Use Case: Organized documents streamline the filing process and support claims for deductions or refunds.

• Note: Convert documents to PDF format for easy upload to the IRIS portal. Keep physical copies for records.

Step 3: File Your Income Tax Return via IRIS

Filing your income tax return is the core 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 (July 1, 2024, to June 30, 2025).
  3. Choose the Simplified Return for Salaried Individuals (if your only income is from salary) or the standard return if you have additional income sources.
  4. Fill in the required fields:
     • Personal Information: CNIC, name, address, and contact details.
     • Income Details: Salary income (from payslips or Form-A/Form-B), including basic salary, allowances, and bonuses.
     • Withholding Taxes: Taxes deducted by your employer (from the withholding certificate).
     • Other Income: Include rental income, dividends, or other sources, if applicable.
     • Deductions: Claim eligible expenses like charity, medical costs, or Zakat (attach proof).
     • Wealth Statement: Declare assets (e.g., property, vehicles, bank accounts) and liabilities (e.g., loans).
  5. Upload supporting documents in the “Attachments” tab (e.g., salary slips, withholding certificate, utility bill).
  6. Use the IRIS portal’s tax calculator to compute your taxable income and any payable taxes.
  7. Review the return for accuracy to avoid errors or penalties.
  8. Submit the return and download the confirmation receipt (save it for records).
• Filing Deadline: The standard deadline is September 30, 2025, but the FBR may announce extensions. File early to ensure timely ATL status.
• Use Case: Completes the filing process, making you eligible for ATL benefits.
• Note: The Simplified Return is user-friendly for salaried persons with single-source income. Consult a tax advisor if you have complex income sources.

Step 4: Pay Any Due Taxes

If your tax return shows taxes owed (e.g., if your employer’s withholding was insufficient), you must pay them to complete the filing process.

• Steps:
  1. Check the payable tax amount in the IRIS portal after completing your return.
  2. Generate a Payment Slip ID (PSID) in the “Payments” section of IRIS.
  3. Pay via:
     • Online banking or mobile apps (e.g., Easypaisa, JazzCash).
     • Bank branch (e.g., NBP, HBL) using the PSID.
     • ATM with FBR payment options.
  4. Save the payment receipt as proof of transaction.
• Use Case: Ensures compliance and avoids penalties for unpaid taxes.
• Note: Most salaried individuals have taxes deducted at source by their employer, so additional payments are rare. Verify with your withholding certificate.

Step 5: Verify Your Filer Status

After filing, confirm your name appears on the ATL to access 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 (e.g., “Active Taxpayer”).
• Check via FBR Website:
  1. Visit https://www.fbr.gov.pk.
  2. Go to “Active Taxpayers List” > “Individual Search.”
  3. Enter your CNIC number.
  4. Confirm your name appears on the ATL.
• Use Case: Verifies successful filing and eligibility for reduced tax rates.
• Note: ATL updates occur daily for filings before September 30, 2025. Late filers may need to pay an ATL challan penalty (Rs. 1,000 for individuals).

Benefits of Being a Tax Filer for Salaried Persons

As a salaried filer, you enjoy significant financial advantages over non-filers:

• Lower Withholding Taxes:
  • Bank Transactions: 0% tax on demand drafts and payment orders (non-filers: Rs. 600 per transaction).
  • Cash Withdrawals: 0.3% tax on withdrawals over Rs. 50,000 (non-filers: 0.6%).
  • Bank Profits/Savings: 10% tax on profits (non-filers: 15%).
• Property Transactions:
  • 1% tax on property transfers (non-filers: 2%).
  • No restrictions on buying property over Rs. 50 million (non-filers: 3% tax, 10.5% for non-filers).
• Vehicle Registration:
  • Rs. 15,000–250,000 in withholding tax (non-filers: Rs. 25,000–400,000).
• Tax Refunds:
  • Claim refunds if your employer withheld excess taxes (common for lower-income salaried persons).
• Other Benefits:
  • Easier loan and credit card approvals.
  • Simplified visa applications for international travel.
  • Eligibility for tax deductions on charitable donations or medical expenses.

Taxable Income and Rates for Salaried Persons (2025)

The FBR’s tax slabs for salaried individuals for the tax year 2024–25 (July 1, 2024, to June 30, 2025) are as follows:

• Up to Rs. 600,000: 0% tax (exempt).
• Rs. 600,001–1,200,000: 5% of the amount exceeding Rs. 600,000.
• Rs. 1,200,001–2,200,000: Rs. 30,000 + 10% of the amount exceeding Rs. 1,200,000.
• Rs. 2,200,001–3,200,000: Rs. 130,000 + 20% of the amount exceeding Rs. 2,200,000.
• Rs. 3,200,001–4,100,000: Rs. 330,000 + 25% of the amount exceeding Rs. 3,200,000.
• Above Rs. 4,100,000: Rs. 557,500 + 35% of the amount exceeding Rs. 4,100,000.

Note: These rates are based on available data up to 2024 and may be updated for 2025. Check the FBR website (https://www.fbr.gov.pk) for the latest slabs.

Tips for a Smooth Filing Process

• File Early: Submit your return before September 30, 2025, to avoid penalties and ensure timely ATL status.
• Verify Employer Withholding: Cross-check your withholding certificate with payslips to ensure accurate tax deductions.
• Use the Simplified Return: Opt for the Simplified Return for Salaried Individuals if your only income is from salary to save time.
• Keep Digital Copies: Save PDFs of your documents and filing receipt in cloud storage (e.g., Google Drive) for easy access.
• Leverage FBR Tools: Use the IRIS portal’s tax calculator or download the My FBR App for mobile filing.
• Consult a Tax Advisor: If you have multiple income sources or complex deductions, seek professional help to avoid errors.
• Monitor ATL Status: Check your filer status regularly via SMS or the FBR website, especially before major transactions.

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 a Regional Tax Office (RTO).

• IRIS Portal Issues:

  • Clear your browser cache or try a different browser (e.g., Chrome, Firefox) if the portal is unresponsive.
  • Reset your password online if you can’t log in.
  • Contact FBR’s helpline for technical assistance.

• ATL Status Not Updated:

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

• Incorrect Tax Calculations:

  • Use the IRIS 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 OTPs:

  • Visit a mobile operator’s service center (e.g., Telenor, Jazz) to reactivate your SIM.
  • Use an alternate number registered to your CNIC if necessary.

Conclusion

Becoming a tax filer in Pakistan as a salaried person in 2025 is a straightforward process that involves obtaining an NTN, gathering documents like salary slips and withholding certificates, filing your income tax return via the FBR IRIS portal, paying any due taxes, and verifying your ATL status. By following these steps, you can ensure compliance with tax laws, reduce withholding taxes, and enhance your financial credibility for loans or visa applications. The Simplified Return for Salaried Individuals makes the process accessible, even for first-time filers. Use the tips provided, file early, and stay informed through the FBR website to enjoy the full benefits of being a tax filer in Pakistan.