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Benefits of Being Active Taxpayer

Benefits of Being Active Taxpayer

Benefits of Being Active Taxpayer

Are you an active taxpayer in Pakistan? Are you aware of the numerous advantages you can enjoy? Being an active taxpayer in Pakistan has many benefits, such as improved access to government services, increased confidence in the economy, and greater opportunities for growth. In this blog post, we will discuss the various benefits of being an active taxpayer in Pakistan and how it can help improve your financial situation.

Before we start, we want to let you know that the deadline for filing your income tax return is 30th September and 31st December every year for individual and companies respectively. By going to FBR’s IRIS portal, you can also file your tax return online in a few easy steps.

Now, let’s get things started!

A big part of the people who live in our country are salaried workers and business owners. Even though the country is home to millions of people who work and run businesses, the tax-to-GDP ratio is shockingly low. Then why don’t all of these people pay taxes? Well, the main reason for the tax gap is that people don’t know about it. Most self-employed and salaried people in Pakistan don’t know that filing taxes has a lot of benefits.

One of the biggest ways that Pakistan’s economy makes money is from the taxes that people pay. Also, it is every Pakistani citizen’s rightful duty to pay taxes on their assets. The government of Pakistan and the Federal Board of Revenue (FBR) are working hard to get more and more people to pay taxes. They do this by punishing people who don’t file tax returns and giving benefits to people who do.

After making it mandatory for salaried and business people to file tax returns, FBR Pakistan has started sending people letters demanding them to get a National Tax Number and get their names on the Active Taxpayers List (ATL).

Pakistan’s Tax Law says that everyone with an annual income of PKR 300,000 or more has to file their tax return. The National Tax Number, or NTN, is a special number that the government of Pakistan gives to every taxpayer. This is how the Federal Board of Revenue (FBR) put your name on the list of Active Taxpayers List.

After getting your name on the ATL, you’ll be able to pay lower taxes than people who don’t file on financial transactions like different kinds of bank transactions, the sale and purchase of property and vehicles, and so on.

Benefits of Filing Tax Return in Pakistan

There are many benefits for people who file tax returns. People who file taxes in Pakistan get tax breaks than people who don’t. 

So, let’s look at the list of benefits that every person who files taxes in Pakistan gets.

  • Those who file taxes only have to pay half of the withholding tax that those who don’t file pay.
  • People who don’t file tax returns can’t buy property worth more than PKR 50 lakh, but people who file tax returns regularly can buy property of any worth.
  • Raw material importers who don’t file taxes would have to pay 8% of the total import, while raw material importers who do file taxes would only have to pay 5.5%.
  • Non-filer exporters in Pakistan have to pay a 9% duty on their commercial exports. On the other hand, the duty that taxpayers should pay on their commercial exports is only 6%.
  • The dividends (the company’s profit) of people who don’t file taxes are taxed at a rate of 20%, while the rate for people who do file taxes is 15%.
  • When it comes to taxes on bank profits and savings plans, a Pakistani who doesn’t file taxes has to pay 15% instead of the 10% that active taxpayers pay.
  • If you don’t file taxes, you have to pay 25% tax on any prize bonds money you win. If you do file taxes, you only have to pay 15% tax.
  • People who file their taxes every year only have to pay 1% in property transfer tax, while people who don’t file their taxes have to pay 2%.
  • In Pakistan, people who file taxes pay only 10% tax, while people who don’t pay taxes pay 15% tax. This is true whether the auctioning is done by the government or by a private company.

This was a guide on benefits available to active taxpayers in Pakistan. We hope this article helped you. Send us an email at info@4sytebiz.com if you have any questions.

You might also be interested in getting our paid services for company registration, corporate compliance, tax planning, wealth management and taxation related issues. Feel free to contact. 

Also, go to 4SYTE Bolg, if you want to read more taxation and business guides. Sign up for our email newsletter if you haven’t done so already, 


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