Office 207, 2nd Floor, Majestic Tower, Main Gulberg Road
Gulberg, Peshawar Cantt Pakistan
10:00 AM – 7:00 PM
Monday to Saturday
+92(0)91 5245868
danish@c4sconsultants.pk
WithHolding Tax Filing
Funds collected from the taxpayers in Pakistan is also one of the biggest sources of income for the state’s economy. Furthermore, it is the rightful duty of every Pakistani citizen to pay taxes levied on their assets. Serious efforts like penalising non-filers of tax returns and provision of benefits to the tax filers in Pakistan are being jointly concerted by the government of Pakistan and Federal Board of Revenue (FBR) to bring more and more people into the tax net.
After making filing of tax returns for salaried and business individuals mandatory, FBR Pakistan has started sending letters to people in which they have been directed to register for National Tax Number and get their names included in Active Taxpayers List (ATL).
GOVERNMENT’S TAX AMNESTY SCHEME 2019
A tax amnesty scheme has been introduced by the government of Pakistan in 2019. The government’s amnesty scheme 2019 covers a number of assets from real estate to undisclosed sales. Moreover, by the end of June 2020, a default surcharge ranging between 10% and 40% will be imposed upon making late payments, which means individuals have ample of time to disclose their assets and income under the tax net.
ACTIVE TAXPAYER LIST(ALT)
Updated on February 29 2020 Midnight Tax Year 2018 2019
01
WHO WILL APPEAR IN ALT
From Ist march 2020 only the person who filed Income Tax return for the Tax Year 2019 within due date will appear in ALT.
02
RETURN FIELD AFTER DUE DATE
Such person shall not included in ATL for the whole year until payment of surcharge. (Section 182A)
03
SURCHARGE TO APPEAR IN ALT
Visit e.fbr.gov.pk => epayments => income Tax => TY 2019 => Misc => Section Surcharger for ATL Rs. 1000(AOP = Rs. 10,000 Company = Ps. 20,000)
04
PAYMENTS
05
CHECK YOUR ALT STATUS
Visit e.fbr.gov.pk Send SMS* ALT <space> CNIC # TO 9966
WHO SHOULD FILE TAX RETURNS?
In the light of Pakistan’s Tax Law, all individuals having an annual income of PKR 4 lakh or above are supposed to file their tax returns on an annual basis. National Tax Number, which is more commonly known as NTN, is a special number allotted by the government of Pakistan to every taxpayer. This is how Federal Board of Revenue (FBR) put you in the list of Active Taxpayers List.
LIST OF BENEFITS OF BEING A TAX FILER IN PAKISTAN
Want to start filing tax returns? Do it right away. Taxpayers in Pakistan, by all means, enjoy more relief on taxes compared to the non-filers. So, let’s take a look at the list of advantages of being a tax filer in Pakistan.
- Taxpayers are only required to pay half of withholding tax in comparison to the tax paid by the non-filers.
- A non-filer is barred from owning a property worth over PKR 50 lakh whereas people who regularly file tax returns can purchase any property.
- Non-filer importers of raw material would have to pay 8% on the total import whereas tax payer importers are required to pay 5.5% on raw material imports.
- Paying 9% duty on commercial exports is obligatory for non-filer exporters in Pakistan. On the other hand, the taxpayers are only supposed to pay 6% duty on their commercial exports.
- A total of 20% tax is liable on the dividends (company’s profit) of non-filers against the 15% tax rate set for tax filers.
- Coming to the taxes levied on profits of banks and saving schemes, a non-filer has to pay 15% tax against the 10% tax paid by active taxpayers in Pakistan.
- Tax filers only pay 15% tax upon winning prize money through prize bond as compared to the 25% tax paid by the non-filers.
- People who regular file income tax returns have to only 1% on property transfer tax against 2% tax paid by property owners who are non-filers.
- Whether it’s the auctioning by government or any other private entity, tax filers pay only 10% tax against 15% tax paid by non-filers in Pakistan.