July 28, 2023
“How to become a tax filer?” This is one of the first questions that arises in one’s mind when one hears about taxes or the new rules about them in the news. Taxes have always been a huge part of the government’s revenue and the news.
Pakistan is a country already struggling through economic crises and tough financial times. Its citizens care a lot about the new policies related to taxes. In the news, mostly all you get about taxes is the GDP to Tax ratio or tax filing. Currently, Pakistani citizens don’t consider paying taxes an obligation; therefore, some try to avoid paying it.
Getting straight to the question about how to become a tax filer in Pakistan, it’s pretty simple. You need to be careful during the whole process, as one mistake can wreck all of your efforts. Before applying any effort, you must familiarize yourself with becoming a tax filer.
Worry not; we have it made easier for you. Becoming a tax filer needs you to be earning at least 600 rupees. There’s a lot more to say about it. In this article, we will explain and elaborate on it all in simpler terms for ease of your understanding.
Nowadays, almost everybody aims to land a good job to make enough money for their expenses and save in case time goes bad. People usually do not prefer doing jobs in the private sector as they may have high salaries, but they usually don’t have perks and permanency.
People tend to go for government jobs to avoid taking such a risk. But, because of overpopulation, such as in countries like Pakistan, there are few spots for government jobs. People often neglect becoming a tax filer in the Federal Board of Revenue, which is also a very good and promising job that one can do.
This article will guide you on becoming a tax filer in Pakistan and all the other related questions. Let’s get straight to our point.
Who is a Tax Filer?
The job of a tax filer is to calculate taxes and prepare bills for tax payment on the demand and behalf of individuals and different businesses. Sometimes a tax filer also goes by the name of a tax preparer.
They mainly obtain financial information about their clients and then approximate the payment and return of taxes for them. One of their most important tasks is filling in the tax reports for their clients. They also strategize and suggest campaigns to their clients for the payment of taxes.
Tax filers or tax preparers do not have a lot of burden of duties on their backs. Usually, the tasks are basic, simple, and easy. They calculate tax credits, deductibles, and liabilities. Tax filers are responsible for reviewing tax reports to check if they are according to the rules and regulations of the government. If not, they make corrections and improvements to it.
Tax filers or tax preparers are also responsible for answering and clearing out all the queries of their clients related to taxes and finance. They sometimes also take in their complaints and forward them to the support office.
Why should you become a Tax Filer?
Becoming a tax filer is a very rewarding job. It offers lots of advantages and ease of work. You do not need to work full-time if you are a tax filer. You can do another job or start your business side by side. The most important thing about this job is that it does not require much from you. Instead, it gives you the most.
Others consider you a government employee if you’re a tax filer or a tax preparer. It is what many people value and want to be tax filers. It gives a lot of concessions in the payment of most taxes. Compared to non-filer or nonactive taxpayers, tax filers enjoy a lot more as a citizen of Pakistan. Tax filing is an easy job, and any middle-aged man or woman can register for it.
The best part about it is that becoming a tax filer is not a very lengthy or demanding process. You can earn a handsome salary as compared to any private sector job. Tax filing is rewarding and outright one of the best federal jobs. Therefore, you should also suggest to your friends and family members to become one and enjoy its never-ending benefits.
What is the requirement to become a Tax Filer in Pakistan?
Tax filing is simple, unlike other jobs that demand many skills, experience, and education. All you need is to be a graduate in finance and have some documentation along with you. You will need FBR user ID and FBR user password. You will be granted one after signing up at the online website of the Federal Board of Revenue.
Furthermore, you will need an income statement that elaborates on the amount and source of your income. It would help if you made at least Rs 600 to be eligible to become a tax filer in Pakistan. If you have any other source of income or do a second job, you will also need an income statement.
Moreover, you will need to bring your wealth statement and national tax number. Now, getting an NTN is the most important step, and many people are not well aware of how to get it. All you need to do is to head over to the official FBR website and opt-out for “registration for new users”.
After completing the registration process, you will be granted a National Tax Number. You can now use this to become a tax filer and get on the Active Taxpayers List (ATL).
How to become a Tax Filer in Pakistan?
Getting a National Tax Number (NTN) is the most important step. After getting one, you can easily become a tax filer. The process is pretty simple. All you need to do is to head over to the FBR website. Here’s the link:
- Register yourself by clicking on “registration for unregistered persons” if you haven’t yet. If you are already registered, then put in your login details. After this, you will be taken to a webpage like the one shown while getting an NTN. You will need to fill out this form and then submit it.
- After doing so, you would get a verification code on the email or phone number that you entered in the form. Just enter the code.
- Now you need to log in to your account and prepare the wealth statement to process income tax returns.
Congratulations! You have been successfully included in the Active Taxpayers List (ATL).
You are now a tax filer. This allows you to enjoy many perks from the government, which the non-filers or nonactive taxpayers don’t have access to.
The Perks of being a Tax Filer in Pakistan
There are numerous benefits to being a Tax Filer in Pakistan. After you have applied to be a tax filer by registering online at the FBR website, you can enjoy all of the perks described below.
Being a tax filer or an active taxpayer gives you the facility of paying only half the taxes nontax filers are obligated to pay. For example, if you buy an immovable property such as a house, plot, land, etc., you have to pay a 1% tax on it if you are a tax filer. On the other hand, nontax filers pay double. They must pay a 2% tax on each immovable property they buy.
This 50% concession in tax payment is similar in many other cases. On winning prize bonds, having savings bank accounts, importing raw materials, cultivating land, and much more, a tax filer owes the government 50% less than the tax a nontax filer is asked to pay.
Now that we have talked about the whole process of becoming a tax filer in Pakistan, including the tiniest details, we hope that you clearly understand our point and now aim to become one.
Tax filing is one of the easiest jobs you will ever come across with. That said, after you register as a tax filer and make it into their Active Taxpayers List (ATL), you can verify it for your own sake.
The tax filing doesn’t demand much from you. Therefore, we suggest you should not hold yourself against becoming one because what’s the point of not enjoying the numerous incentives the government has been offering tax filers?
A highly skilled tax consultant specializing in Pakistan’s intricate tax laws and regulations. With over a decade of experience in the field, he has helped countless individuals and businesses navigate the complexities of taxation. His expertise lies in optimizing tax strategies, ensuring compliance, and maximizing returns for his clients. John’s in-depth knowledge of Pakistan’s tax system and dedication to staying up-to-date with ever-changing laws make him a reliable and sought-after advisor. Whether it’s tax planning, filing, or resolving tax-related issues, clients trust John’s proficiency and commitment to achieving financial success while remaining fully compliant with the law.