Complete income tax return filing and FBR compliance services in Pakistan. From NTN registration and annual return filing to wealth statements and Active Taxpayers List inclusion, we handle every aspect of your tax obligations under the Income Tax Ordinance, 2001.
Why Tax Compliance Matters in Pakistan
Tax filing in Pakistan is no longer optional for most citizens. The Federal Board of Revenue (FBR) has progressively tightened enforcement, and the consequences of non-compliance now extend far beyond penalties. Under Section 114 of the Income Tax Ordinance, 2001, a wide range of individuals and entities are required to file annual income tax returns.
Non-filers face double withholding tax rates on virtually every financial transaction — from buying property and vehicles to receiving bank profits and dividends. Understanding the full impact is critical; see our detailed breakdown at Filer vs Non-Filer.
Use our free Salary Tax Calculator to estimate your annual tax liability before engaging our filing services.
Who Must File an Income Tax Return?
Section 114 of the Income Tax Ordinance requires filing from the following persons:
- Salaried individuals earning above PKR 600,000 per annum (the tax-exempt threshold)
- Every company incorporated or registered in Pakistan, regardless of profit or loss
- Every AOP (Association of Persons) including partnerships and firms
- Property owners with immovable property valued at PKR 5 million or above
- Vehicle owners with motor vehicles of 1000cc engine capacity or above
- Commercial/industrial electricity consumers with annual bill exceeding PKR 1 million
- NTN holders — anyone who has been issued a National Tax Number
- Non-residents deriving Pakistan-source income
Our Tax Filing Services
Individual Income Tax Return Filing
For salaried employees, self-employed professionals, and freelancers, we provide end-to-end filing services:
- NTN registration on the FBR IRIS portal for first-time filers
- Income computation under Section 115 (tax on taxable income) — salary, property, business, capital gains, and other sources
- Deduction claims — charitable donations (Section 61), education expenses, profit on debt for housing (Section 62), investment tax credits (Section 62A), and Zakat adjustments
- Wealth statement preparation under Section 116 — reconciling assets, liabilities, and expenses with declared income
- IRIS e-filing and submission confirmation
- ATL verification — confirming your name on the Active Taxpayers List within 48 hours
Business & Corporate Tax Filing
Businesses face additional compliance layers. Our corporate filing covers:
- Annual corporate return — income computation, minimum tax under Section 113, and applicable tax rate determination
- Withholding tax statements — monthly and annual statements for taxes deducted under various sections (149, 150, 151, 153, 155, 231A, etc.)
- Advance tax computation — quarterly advance tax estimation and payment under Section 147
- Sales tax return filing — monthly sales tax returns on the FBR eFBR portal
- Annual audited accounts — coordination with your auditors for tax-compliant financial statements
For tax-efficient business structuring, consult our Tax Planning & Advisory services.
Wealth Statement & Asset Reconciliation
Under Section 116 of the Income Tax Ordinance, every individual filing a return with income above PKR 1 million must also file a wealth statement. This is one of the most scrutinized components of your filing.
We prepare comprehensive wealth statements that reconcile:
- Opening and closing net assets (immovable property, vehicles, bank balances, investments, receivables)
- Personal and household expenses declared during the year
- Sources of funds for any new assets acquired
- Liabilities including bank loans, mortgages, and personal borrowings
Inaccurate wealth statements are a primary trigger for Section 122 amendment proceedings by FBR. If you face such proceedings, our Tax Dispute Representation team can defend your position.
Tax Year Deadlines in Pakistan
| Category | Tax Year Period | Filing Deadline |
|---|
| Salaried Individuals | July 1 – June 30 | September 30 |
| Non-Salaried Individuals / AOPs | July 1 – June 30 | September 30 |
| Companies (Normal Tax Year) | July 1 – June 30 | December 31 |
| Companies (Special Tax Year) | As approved by FBR | 6 months after year-end |
| Withholding Tax Statements | Monthly / Annual | 15th of following month / Sep 30 |
| Advance Tax (Quarterly) | Quarterly | Sep 15, Dec 15, Mar 15, Jun 15 |
Note: FBR frequently extends the September 30 deadline for salaried individuals through official notifications. However, relying on extensions is risky — late filing penalties under Section 182 accrue from the original deadline.
The FBR IRIS Portal: How Filing Works
All income tax returns in Pakistan are filed electronically through the FBR IRIS (Inland Revenue Information System) portal. The process involves:
- Registration — Creating an IRIS account using your CNIC (for individuals) or NTN (for businesses)
- Data entry — Entering income details, deductions, tax credits, and asset/liability information
- Wealth statement — Filing the mandatory personal wealth reconciliation (Section 116)
- Computation — The system auto-computes tax liability, adjustable taxes, and payable/refundable amount
- Payment — Paying any balance tax through online banking (ADC) or CPR at designated bank branches
- Submission — Digitally signing and submitting the return; acknowledgment receipt is generated
The portal can be technically challenging, especially for first-time filers. Our team handles the entire process on your behalf — you just provide the documents.
Active Taxpayers List (ATL): Benefits of Being a Filer
Filing your return places your name on the Active Taxpayers List, which FBR publishes and updates regularly. Being on the ATL provides significant financial advantages:
- Property transactions — Filers pay 3% advance tax on property purchases vs 10.5% for non-filers
- Vehicle registration — Substantially lower advance tax on vehicle purchase and registration
- Bank profits — 15% WHT for filers vs 30% for non-filers on savings account profit
- Dividends — 15% tax for filers vs 30% for non-filers
- Cash withdrawals — 0.6% for filers vs 0.6% (but with lower thresholds triggering the tax) for non-filers
- Mobile phone registration — Required to be a filer to register new mobile SIMs in many cases
For the complete comparison, visit our Filer vs Non-Filer Guide.
Penalties for Non-Compliance
FBR imposes strict penalties for tax non-compliance under the Income Tax Ordinance:
- Section 182 — Late filing penalty: PKR 1,000 per day of default for individuals (maximum PKR 50,000); PKR 10,000 per day for companies (maximum PKR 500,000)
- Section 182A — Penalty for non-filing: FBR can impose penalty equal to 100% of the tax due for persistent non-filers
- Section 183 — Concealment of income: Penalty up to 100% of the tax sought to be evaded plus potential prosecution
- Section 191 — Prosecution: Willful non-filing or tax evasion can result in imprisonment of up to 7 years
- ATL exclusion: Removal from Active Taxpayers List, resulting in higher WHT deductions across all transactions
Why Choose LegalPK for Tax Filing?
- 500+ returns filed annually — for individuals, freelancers, and businesses across Pakistan
- FBR IRIS experts — our team navigates the portal daily; no delays, no technical errors
- Wealth statement accuracy — we ensure your wealth reconciliation withstands FBR scrutiny
- ATL guarantee — your name appears on the Active Taxpayers List within 48 hours of filing
- Post-filing support — we handle any FBR queries, notices, or amendments that arise after filing
- Transparent fixed fees — no hourly billing, no surprises; you know the cost upfront
Frequently Asked Questions
Under Section 114 of the Income Tax Ordinance, 2001, every individual whose income exceeds PKR 600,000 per annum, every company, every AOP, and anyone with an NTN must file. Additionally, anyone who owns property worth PKR 5 million or more, owns a vehicle of 1000cc or above, or has a commercial electricity connection exceeding PKR 1 million must also file.
For salaried individuals and AOPs, the due date is September 30 following the end of the tax year (July 1 to June 30). For companies, the deadline is December 31. FBR frequently extends these deadlines through official notifications, but penalties accrue from the original due date.
The ATL is published by FBR and lists all persons who have filed their income tax return for the most recent tax year. Being on the ATL means significantly lower withholding tax rates on property transactions, vehicle purchases, bank profits, dividends, and many other transactions. Non-filers pay up to double the withholding tax.
Late filing attracts a penalty under Section 182 — PKR 1,000 per day for individuals (up to PKR 50,000) and PKR 10,000 per day for companies (up to PKR 500,000). Your name is also removed from the Active Taxpayers List, resulting in higher withholding tax deductions on all financial transactions.
You need your CNIC, NTN number, salary certificates or income statements, bank statements for all accounts, property documents (if any), vehicle registration details, utility bills for business premises, and investment certificates. For businesses, audited financial statements and sales tax records are also required.
