Frequently Asked Questions

An Active Taxpayer (Filer) is listed on the FBR Active Taxpayer List (ATL) after filing their annual income tax returns. Active taxpayers pay significantly lower rates of withholding tax on cash withdrawals, banking transactions, vehicle registration, property purchases, and import duties. A Non-Active Taxpayer (Non-Filer) pays double or higher withholding tax rates and can face audits or legal notices.

For salaried individuals and business individuals, the standard tax year runs from July 1st to June 30th, and the deadline to file annual income tax returns is September 30th of each year. For companies with a special tax year or specific accounting cycles, the deadlines can vary. FBR sometimes announces extensions, but it is highly recommended to file before the official deadline to avoid penalties and late-filing fees.

You can verify your status online via the FBR e-Portal under the Online Verification section. Alternatively, you can check via SMS: Send 'ATL [space] 13-digit CNIC (without dashes)' to 9966. You will receive an instant reply indicating whether you are active or inactive.

Tier-1 retailers in Pakistan are legally required to integrate their Point of Sale (POS) systems with the FBR real-time digital invoicing system. This ensures that every sale and the corresponding sales tax collected are instantly reported to FBR. Integrated systems print a QR code on invoice receipts, which consumers can scan to verify their tax contribution.

With the modern SECP eServices portal, company incorporation is much faster. Once names are reserved, and all required forms, incorporation fees, and documentation (Memorandum and Articles of Association) are submitted, SECP typically processes and issues the Certificate of Incorporation within 3 to 5 business days, assuming all documentation is correct.

You do not need a completely separate NTN number, but your existing Income Tax NTN must be activated for Sales Tax. This process involves registering for Sales Tax Registration Number (STRN) with the FBR or provincial revenue boards (such as PRA for Punjab or SRB for Sindh) depending on whether you provide goods or services.