Benefits of being Tax filer in Pakistan

Benefits of being filer in pakistan

Government of Pakistan in order to promote and motivate each citizen of Pakistan to become Filer by submitting their income tax declaration with FBR has offered 150+ instances/activities where person having Filer status save enormous amount of money. Each day more and more instances are being created to offer maximum tax benefits to persons having Filer Status. If you are willing to File and submit your income tax declarations with FBR, you will be able to save huge sum of money as compared to Non-Filers. It is not possible for us to narrate all the instances where Filer enjoys tax benefits but some of the benefits that Government of Pakistan ensure to Filer are detailed herein below for your knowledge and reference:

Benefits of being filer Filer in Pakistan by Federal Board of Revenue (FBR)

  1. For purchase of immovable property including house, flats or plots, 1% tax is payable by Filer appearing on Active Taxpayer List of FBR, whereas 2% tax is payable on the purchase of property by inactive taxpayers/ Non-Filers.
  2. 15% tax is payable on Prize bond winnings by Filer whilst 30% tax is payable by Non-Filer.
  3. Persons appearing on ATL (Filer) having Saving/Profit bank account has to pay a 15% tax on profit/yield received from a bank. Non-Filer on the other hand pay 30% tax upon such profit/yield received from bank.
  4. 50% concession over tax payable by Filer or registration of Vehicle as compared to tax payable by Non-Filer.
  5. 5.5% tax payable by Filer on import of Raw Material as compare to 11% payable by an inactive taxpayer/Non-Filer.
  6. Filer is required to pay 15% tax on Dividend income as compare to 30% payable by Non-Filer
  7. Filer on Commercial import is required to pay 6% tax at stage of custom clearance compared to double the amount of tax (12%) payable by Non-Filer.
  8. 10% tax is required to be paid by Filer on sale by auction whereas 20% tax is payable by inactive taxpayer/ Non-Filer.
  9. 4.5% tax is payable by Filer on commercial supply of Goods as compared to 9% tax payable by Non-Filers.
  10. 10% tax shall be withheld on the provision/sale of services by the person appearing on Active Taxpayer List whereas 20% tax shall be withheld from inactive taxpayers.
  11. 15% tax is required to be withheld on the execution of contracts by Non-Filers as compared to 7.5% tax payable by Filer.
  12. 12% tax is chargeable on commission of Filer and 24% tax is payable by Non-Filer/In-Active Taxpayer.

Considering the above, it can be seen that overall double the amount of tax is payable by Non-Filer as compared to tax payable by Active Tax Payer (Filer) on almost all the activities/instances. These taxes are automatically deducted at source therefore, same cannot be avoided. For Example profit/yield by bank in your saving account is received after deduction of tax by bank according to your Filer/Non-Filer status. Similarly, at the time of registration of vehicle, Excise Authority charges tax payable accordingly to existing Filer/Non-Filer Status of owner, and without payment of which your Vehicle cannot be registered.

To enjoy these tax benefits all you need to do is to file your income tax return. Our Tax Experts at Hamza and Hamza Law Associates have made the procedure pretty simple and hassle free. All you need to do is to contact one of the Best law firms in Pakistan and we shall file your income tax return is no time and you will be enjoying your Filer status within just a few hours.