Table of Contents
Pakistan has one of the lowest tax-to-GDP ratios across the globe. The tax-to-GDP ratio is used to evaluate 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. So this year, be a good citizen and pay your taxes. If you’re unaware about 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 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 ever 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.
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 a NTN first.
Get your registration number and password through FBR’s Enrollment process. To do that, click here to navigate to front page of Iris, which is FBR’s simplified ERP system for tax payer 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.
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.
Companies/AOPs can also get their NTNs online. Mentioned below is the NTN registration process for companies and AOPs.
To help you clearly understand the process, here are some additional resources
Your UserID for Iris is your Registration Number, which in case of: