Understanding Tax Filer Status in Pakistan (2025):

You have probably heard the words filer, non-filer, & late filer; spoken around frequently while it can get irritating. But have you ever stopped to think how important these terms really are?

That is why we have broken down the differences between Active Filer, Late Filer, and Non-Filer statuses; explaining what each term means, what causes them, and how they impact you.

Once you understand these distinctions, you will be better equipped to take timely action and secure your place on the Active Taxpayer List (ATL), which is set to be issued on October 1, 2025.

Who is an Active Filer?

An Active Filer is an individual, AOP, or company that submits their income tax return by the FBR’s deadline typically September 30, 2025 for individuals & AOPs, or December 31, 2025 for companies (subject to extensions).

They enjoy lower withholding tax rates on key transactions, such as property transfers (3% vs. 10% for non-filers), vehicle registrations, and banking activities.

Active Filers are included in the Active Taxpayer List (ATL), which is updated daily by the FBR.

Who is a Late Filer?

A Late Filer is a taxpayer who submits their income tax return after the due date or extended deadline (e.g., October 31, 2024, for the 2023-24 tax year).

While still listed on the ATL, Late Filers face higher withholding taxes, such as 6% advance tax on property sales under Section 236C, compared to 3% for Active Filers.

Missing three consecutive returns may reclassify a taxpayer as an Inactive Taxpayer, leading to even stricter penalties.

Who is a Non-Filer?

A Non-Filer is an individual or entity who is not registered with the FBR or has not filed an income tax return despite being liable to do so.

Non-Filers face the highest withholding tax rates, such as 10% on property purchases and 15% on cash withdrawals exceeding certain limits.

They are excluded from the ATL and encounter restrictions in financial activities, like opening bank accounts or applying for loans.

How to Become a Filer?

To transition from a Non-Filer to an Active Filer and secure ATL inclusion, follow these steps:

1. Register for an NTN: Obtain your National Tax Number (NTN) through the Arbab Ahmad app or website portal using your CNIC. Visit Arbab Ahmad  and navigate to the Registration section to sign up.
2. Submit Your Tax Return: File your income tax return for the 2024-25 tax year before September 30, 2025, via the Arbab Ahmad app or website portal. Ensure all required financial details, such as income and expenses, are accurately reported.
3. Pay Any Dues: If you owe taxes or penalties (e.g., the ATL surcharge for late filers), settle them promptly using the FBR’s online payment system or designated banks.
4. Verify Your Status: After filing, check your ATL status on the Arbab Ahmad app or website portal to confirm you are listed as an Active Filer.

How to Avoid Late Filing

To prevent Late Filer status and its higher tax rates, take these proactive steps:

1. File Early: Submit your 2024-25 tax return well before September 30, 2025, to avoid last-minute issues like IRIS portal glitches, servers down, and ensure Active Filer status on the ATL issued October 1, 2025.
2. Register Promptly: If you are a new taxpayer, register for an NTN before tax season 2025 (July 1 – 30 September), to qualify for the 2025 ATL. Late registrants (post-June 30) must still file by September 30, 2025.
3. Pay the ATL Surcharge (if late): If you missed the 2023-24 deadline (October 31, 2024), file your overdue return and pay the surcharge (e.g., Rs. 1,000 for salaried individuals) to regain Active Filer status.
4. Use Reliable Tools: File through the Arbab Ahmad  mobile app or visit the website portal. The Arbab Ahmad app and website can help track deadlines and verify your filer status.
5. Stay Updated: Monitor FBR announcements for deadline extensions (e.g., the 2023-24 deadline was extended to October 31, 2024). Visit the FBR website or contact their helpline for updates.

Benefits of Active Filer Status

Maintaining Active Filer status offers clear advantages:

• Lower Withholding Taxes: You can enjoy reduced rates on property transactions (3% vs. 10% for non-filers), vehicle registrations (Rs. 7,500–250,000 vs. Rs. 15,000–500,000), and bank transactions.
• Access to Financial Services: Active Filers face fewer restrictions when applying for loans, opening bank accounts, or participating in government tenders.
• Tax Credits and Deductions: You can claim adjustments for advance taxes paid, which would reduce your overall tax liability.
• Compliance and Reputation: You can demonstrate adherence to Pakistan’s tax laws in order to avoid penalties and enhance your credibility.

Becoming an Active Filer in Pakistan by registering for an NTN and filing your 2024-25 tax return before September 30, 2025, unlocks lower taxes and financial benefits.

Avoid Late Filer or Non-Filer status by filing early, using the Arbab Ahmad app or website portal, and staying informed on FBR deadlines.

Take control of your tax status today to save more and ensure compliance.