Difference Between Filer and Non-Filer in Pakistan
Every year, the government of Pakistan introduces a finance bill, which introduces taxes, sets the tax rates for each income group, and determines the tax rates for businesses and salaried individuals. Filer and non-filer are words that you often hear in every country. Filing taxes seems like a daunting task but individuals need to do it to enjoy its benefits and avoid penalties. This article will help you learn a few things about filers and non-filers that no one will tell you in accurate and simple terms.
Filer vs Non-Filer in Pakistan: What is the real difference?
Difference Between Filer and Non-Filer in Pakistan
The terms “filer” and “non-filer” are commonly heard in Pakistan when it comes to taxes, but many people still don’t fully understand the difference or how it affects them financially. Whether you are a salaried employee, freelancer, business owner, or property investor, knowing the difference can save you money, legal hassle, and lost opportunities.
What is a filer?
Difference Between Filer and Non-Filer in Pakistan
A filer is a person or business that appears in the Active Taxpayers List (ATL) maintained by the Federal Board of Revenue (FBR). To become a filer, you need to:
Register with the FBR (through the IRIS portal)
File your annual income tax return.
File a wealth declaration (if required)
Once you do this, your name is added to the ATL — usually updated weekly.
What is a non-filer?
Difference Between Filer and Non-Filer in Pakistan
A non-filer is someone who:
Has a valid CNIC or NTN.ries out financial transactions.
But does not file their tax returns or is not registered in the ATL.
Being a non-filer does not mean you are completely out of the tax system — it means you are not complying, and the FBR knows this.
Key Differences Between Filers and Non-Filers
Features Filer Non-Filer
Difference Between Filer and Non-Filer in Pakistan
Earns income, owns property, or carAccess to Financial Services
If you are a tax filer, you can open access to various financial services:
Difference Between Filer and Non-Filer in Pakistan
Bank Loans and Credit: Banks prefer to lend to filers due to tax laws and verified financial status. This results in access to business and personal loans in areas with higher credit limits.
Credit Card Approval: Filers often get faster approval and higher limits on credit cards.
Mutual Funds: Various discounts on profits and lower tax rates.
Airport Tax Deduction: Filers pay hefty taxes at the airport when traveling abroad. For example, the airport ticket tax for filers is PKR 15,000. And non-filers pay PKR 30,000. Moreover, non-filers will also face travel restrictions.
If you want to know the process of becoming a filer, this guide will help you a lot. Now, let’s take a look at the common differences between filers and non-filers in simple terms.
Aspect Filers Non-filers
Difference Between Filer and Non-Filer in Pakistan
. Those who do not file income tax returns.
Tax rates on various financial transactions and income are lower. Higher
Withholding tax on bank transactions Reduction in tax on cash withdrawals and transactions.
Higher Vehicle registration Lower tax rate for vehicle registration. Higher tax rate
Property transactions Lower tax Higher tax
Eligibility for refunds Eligible for tax refunds if overpaid. Not eligible for tax refunds.
Risk of penalty Compliance with tax laws, avoidance of penalties. Non-compliance can lead to penalties or legal action.
NIC verification A National Identity Card (NIC) is linked to tax records, making the verification process easier. NIC is not linked to tax records, resulting in additional scrutiny.
Real-world financial implications
Buying property? As a non-filer, you’ll pay double the tax.
Selling a car? You’ll get less value due to higher taxes.
Withdrawing cash from the bank? Expect higher withholding tax (WHT).
Applying for a visa or loan? Being a non-filer can damage your reputation.
Common myths
Myth: Only large businesses need to file taxes.
Fact: Everyone with income (including freelancers and salaried individuals) must file
Myth: Filing a tax return means you’ll have to pay a lot more tax.
Difference Between Filer and Non-Filer in Pakistan
Fact: Filing doesn’t always mean paying – in many cases, you can get a refund or pay nothing if your income is below the taxable threshold.
How to become a filer.
Create an FBR IRIS account: https://iris.fbr.gov.pk
Obtain NTN (if required)
File your Income Tax Return and Wealth Statement.
Wait for ATL updates (usually weekly)
Check ATL status here: https://www.fbr.gov.pk/atl
conclusion:
Difference Between Filer and Non-Filer in Pakistan
Becoming a filer in Pakistan is not just a formality but a huge financial undertaking. Whether you are earning a salary, working freelance, or running a business, becoming a filer can save you thousands of rupees every year.
So don’t wait until it costs you more. Become a filer, take control of your finances, and stay ahead of the system.
Contact Us:
Difference Between Filer and Non-Filer in Pakistan
How to Face a Tax Audit in Pakistan: A Guide for Individuals and Businesses
Role of the Federal Board of Revenue (FBR) in Tax Collection and Compliance
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FAQs
What is a filer in Pakistan?
A filer is a person or business whose name is included in the Active Taxpayers List (ATL) maintained by the Federal Board of Revenue (FBR). To become a filer, you must file your annual income tax return.
Difference Between Filer and Non-Filer in Pakistan