Introduction
In Pakistan, having a National Tax Number (NTN) and becoming a filer is essential for individuals and businesses to comply with tax regulations. The Federal Board of Revenue (FBR) maintains a tax system that incentivizes taxpayers by offering numerous benefits. This article will guide you through the process of obtaining an NTN, registering as a filer, and understanding the advantages of being a taxpayer in Pakistan.
What is an NTN?
A National Tax Number (NTN) is a unique identifier issued by the Federal Board of Revenue (FBR) to individuals, businesses, and companies for tax purposes. It is mandatory for filing income tax returns and conducting various financial transactions in Pakistan.
How to Create an NTN in Pakistan
Creating an NTN is a simple process that can be done online through the FBR’s IRIS portal. Follow these steps to register for an NTN:
Step 1: Visit the FBR Website
- Go to the FBR IRIS Portal at https://iris.fbr.gov.pk.
Step 2: Create an Account
- Click on “Registration for Unregistered Person.”
- Provide your CNIC (Computerized National Identity Card) number (for individuals) or business registration details (for companies).
- Enter your email address and phone number.
- Click on “Submit” to receive a verification code.
Step 3: Complete Your Profile
- Log in using the credentials sent to your email.
- Provide personal information such as name, address, and profession.
- Attach scanned copies of your CNIC, utility bill (for address verification), and any business-related documents if applicable.
Step 4: Submit Your Application
- Double-check the provided information.
- Click “Submit” and wait for approval from FBR.
Once approved, you will receive your NTN number, which can be used for tax filings and financial transactions.
How to Become a Filer in Pakistan
After obtaining an NTN, you must file your Income Tax Return to be listed as a filer in the Active Taxpayer List (ATL). Follow these steps to become a filer:
Step 1: Log in to IRIS
- Use your NTN and password to log into FBR’s IRIS Portal.
Step 2: Fill Out Your Income Tax Return
- Navigate to “Declaration” and select “Income Tax Return.”
- Provide details of your income, expenses, assets, and liabilities.
- Attach any required supporting documents (such as salary certificates, bank statements, or property details).
Step 3: Submit the Tax Return
- After reviewing all details, click on “Submit.”
- You will receive a confirmation message indicating that your tax return has been successfully submitted.
Step 4: Verify Your Status in ATL
- After submission, check your filer status in the Active Taxpayer List (ATL) on the FBR website.
Benefits of Becoming a Filer in Pakistan
Becoming a tax filer provides several financial and legal advantages, including:
1. Lower Withholding Tax Rates
- Filers pay significantly lower withholding tax on bank transactions, property purchases, and vehicle registration compared to non-filers.
2. Easy Loan and Credit Approval
- Banks and financial institutions prefer tax filers when approving loans, credit cards, and mortgages.
3. Business Credibility
- Being a registered taxpayer enhances your business reputation and helps in securing government and private sector contracts.
4. No Legal Penalties
- Non-filers face penalties, legal notices, and restrictions on certain financial transactions. Filing tax returns prevents legal complications.
5. Eligibility for Government Incentives
- The government offers various tax reliefs, incentives, and subsidies exclusively for tax filers.
6. Smooth Travel Process
- Filers are subject to lower tax rates on international travel and airline ticket purchases.
Conclusion
Registering for an NTN and becoming a filer in Pakistan is essential for compliance with tax laws and gaining financial benefits. The process is straightforward and can be completed online via the FBR IRIS portal. By becoming a filer, you not only contribute to the country’s economy but also enjoy lower tax rates and financial security.
If you need further assistance with tax registration and filing, consult a professional tax consultant to ensure compliance with Pakistan’s tax laws.
For expert tax services, feel free to contact us at activetaxpayers.com where experienced tax professionals are ready to assist you with NTN registration and tax filing in Pakistan.
