Becoming a tax filer is quite an easy thing to do. All you need to do is register yourself on the IRIS FBR portal and put all the required details. As a matter of fact, the process has become so easy that even if you do not have an accounting background. You can still tax file on the IRIS FBR portal without the help of an expert accountant or a lawyer.
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Note: As a proud citizen of Pakistan, it is everyone’s responsibility to pay their taxes on time.
Who Is a IRIS FBR Filer And Non-Filer?
Under the income tax ordinance 2001, the Federal Board of Revenue introduced the concept of filers and non-filers. The withholding tax is charged at normal rate for the filers. Whereas, double tax is charged to someone who is a non-filer. There are a lot of benefits that filers in Pakistan can take advantage from. Such as they have to pay reduced taxes when purchasing any sort of vehicle or properties.
Come to think about it, what is the difference between a filer and a non-filer. Well, in simple terms, a non-filer is just a person who has not yet registered with IRIS FBR or has an NTN (National Tax Number) but has not been filing tax returns regularly. Whereas, a filer is a person who is registered with FBR, owns a NTN, and also files his tax returns on time.
Advantages Of Becoming A Filer In 2023
The benefits of becoming a filer include the following:
- Filers has to pay reduced tax rate on purchase of property
- Lower tax rate on prize bonds winning
- Withholding tax rate increased by 100% for non-filers, so filer gets benefit.
- Filers has to pay reduced tax rate on purchase of vehicles
- On filers, dividend taxes are lower.
- Seller of goods only have to pay normal rate of tax instead of 100% increase in case of non filer.
- Provider of services only have to pay normal rate of tax instead of 100% increase in case of non filer.
- Lower tax rate on bank profits (15% for filer and 30% for non filer)
- Reduced tax rate is applicable on execution of contracts
- Lower tax rate on payments to non residents against royalties and fees as compare to tax rate for non filers
Filers who are listed as “Active Taxpayers” by the IRS are considered taxpayers. Taxpayers must submit their annual income tax returns through IRIS on the FBR website in order to be included on this list. They file tax returns every year, thus FBR counts them as a filer.