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Pakistan has one of the lowest tax-to-GDP ratios across the globe. The tax-to-GDP ratio is used to evaluate the development of a country year after year. Higher GDP of a country means that the economy is producing more and the government is generating higher tax revenues.
Paying taxes is not only a legal obligation but a moral one, as well as individuals and companies, contribute towards the betterment of the nation.
The last date to file Tax Returns for the year 2018 has been extended till Aug 2, 2019, by the FBR. So you still have enough time to file your tax returns. If you’re unaware of the process, then let this article be your guide.
It is mandatory for every person who earns PKR 400,000/- or above per annum (33,300 per month) to pay income tax. Filing tax returns online can make this entire process a lot easier and ensure more people pay their taxes since many people who want to pay their taxes don’t do so due to bureaucracy and other issues normally associated with government institutions.
It’s the government who decides the tax rates on your earnings every year in the annual budget presented in June
We advise you to check the tax slab you fall in, before starting the filing process. This will make the process simple and smooth.
For Individuals, Get Registered Online with FBR’s E-Enrollment System
Tax filers who don’t have an NTN can use their CNIC numbers to start filing their tax returns without going through the additional step of getting an NTN first.
Get your registration number and password through FBR’s Enrollment process. To do that, click here to navigate to the front page of Iris, which is FBR’s simplified ERP system for taxpayer registration.
Now, you need to navigate to ‘Registration for Unregistered Person,’ only if you’re a first time user. Insert the required information and you’ll be sent a confirmation input in the form of a password or a PIN to validate your account.
Filing The Tax Return
Once registered successfully, you have to log-in by entering your registration number and the password on the main page of Iris. Now, you can file your income statement.
Salaried individuals have to fill in the wealth statement and income tax returns. The procedure for filling out your details for wealth statement and income tax returns is mentioned here.
More detailed information about the process can be found here.
NTN Registration Process For Firms and AoPs (Association of Persons)
Companies/AOPs can also get their NTNs online. Mentioned below is the NTN registration process for companies and AOPs.
- Visit the URLfbr.gov.pk and select the tab E-registration.
- Mention your CNIC number, name and load image.
- Add your date of birth as per CNIC, your residential address, your activity, landline number, mobile number, and email address.
- Since you are filling in the form yourself select the ‘Authorized Representative u/s 172 and then select ‘Self.’
- Click on ‘Save Registry.’
- In the next column, mention your employer’s NTN and city of your employment, if you are an employee. If you’re a businessman, then fill in the details of your business as well.
- Your application is now complete. Click on the ‘Print’ icon to get a print of the application and sign it.
- This process will alert you if there is an existing NTN based on the credentials provided. If you still have doubts, use your CNIC number to get it.
- You will be allotted an NTN after 2 working days via an email.
- After getting your NTN, attach a copy of a paid electricity bill, salary certificate, and CNIC with the printed application.
- Take it to your concerned RTO office and submit. You will be issued your NTN certificate.
To help you clearly understand the process, here are some additional resources
Video Lesson for Drafting Your Wealth Statement
Video Lesson For Drafting Youts To Consider
Important Points To Consider
Your UserID for Iris is your Registration Number, which in case of:
- Individual Pakistani is the 13-digits on CNIC/NICOP (without dashes)
- Individual Non-Pakistani is the 7-digits NTN (excluding dash and check digit)
- AOPs/Companies is the 7-digits NTN (excluding dash and check digit).