Benefits active tax payer list

Active Tax Payer:

The Active Tax payer list is a central record of online Income Tax Return filers for the preceding tax year. As defined in the Ordinance, a tax payers whose name appears in the active tax payer list issued by FBR. A non-filer person is not a filer.

A person’s name will be part of the current ATL if the tax return filed pertains to the tax year of the relevant ATL. For example, to be part of ATL published on 1^st March 2022,  a person must have filed a Tax Return for the tax year 2021.

Restriction on including a person’s name on ATL, if the person has not filed a Tax Return by the due date specified by Income Tax Authorities

Benefits of being on the Active Tax payer list:

• Persons appearing on the Active Tax Payers list have to bear almost half of the withholding tax as compared to inactive taxpayers.
• Active tax payers are subjected to a 5.5% tax on the import of raw materials whereas the tax imposed on non-filer increases by 100%.
• Active tax is subjected to 6% on commercial imports, as compared to double that rate borne by non-filer.
• Tax on dividend Income is 15% as compared to 30% imposed by payable by Inactive taxpayers.
  

• People appearing on ATL have to pay a 10% tax on profit from a bank and saving schemes up to Rs 500,000 and 15% above 500,000 whereas inactive taxpayers have to pay double.
• Withholding tax deduction on registered suppliers is 4.5% in contrast to 9% on unregistered suppliers.
• 10% tax shall be withheld on the provision of services by the person appearing on the Active Tax Payer list except for companies whereas 20% shall be withheld from inactive taxpayers.
• On execution of contracts,7.5% of Active tax payer contractors whereas 15% is from Inactive taxpayers.
• 15% tax on prize money bonds of prize bonds needs to pay by persons in ATL as compared to 30%  by Inactive taxpayers.
• Rs 7,500 to Rs 250,000 tax shall be withheld on vehicle registration from the person appearing on the Active Tax Payer list whereas Rs 15,000 to Rs 500,000 shall be withheld from Inactive taxpayers.
• No tax is payable on cash withdrawal by the person appearing on ATL, whereas 0.6% tax is payable on bank transactions by inactive taxpayers.
• 1% tax payable on the purchase of the property of the person appearing on ATL, whereas 2% on inactive taxpayer
• The active tax payer is subject to 10% on sale on auction, whereas the incidence is double for the inactive taxpayers.
• 10% tax deduction for payment against advertisement to non-resident persons by the person appearing on ATL whereas 20% tax reduction from the inactive taxpayer.

1. Verification by using the online portal (e.fbr.gov.pk)
2. Active Tax Payer list (ATL) is available on the portal FBR.
3. Checking of Active Taxpayer status via SMS.

Mandatory for the following person to submit a return of income:

• Every Company
• Individual/Association of persons having turnover exceeding the maximum amount that is not chargeable to tax under this Ordinance
• Non-Profit Organization
• Every Person whose Income is subject to final taxation such as export proceeds
• Any person who has been charged to tax in respect of any of the 2 preceding tax years.
• Claims a loss carried forward under the Ordinance for a tax year
• Owns immovable property with a land area of five hundred square yards or more or owns any flat located in areas falling within municipal limits existing immediately before the commencement of local government laws in the provinces or areas in a Cantonment or Islamabad-Capital territory.
• Owns immovable property with a land area of five hundred square yards or more located in a rating area.
• Owns a motor vehicle having engine capacity above 1000 CC.
• Has obtained NTN.
• Is the holder of commercial or Industrial connection of electricity where the amount of annual bill exceeds five hundred thousand.
• Is a resident person registered with any chamber of commerce and industry or any trade or business association or market committee or any professional body including Pakistan Engineering Council, Pakistan Medical and Dental Council, Pakistan Bar Council or any Provincial Bar Council, Institute of Chartered Accountants of Pakistan or Institute of Cost and Management Accountant of Pakistan
• Has foreign income or possesses foreign assets.

Persons not required to furnish a return of income:

The following persons are not required to furnish a return of Income for a tax year:

• A widow.
• An orphan below the age of twenty-five years.
• A disabled person.

To become part of the Active Tax Payer list, the Active Taxpayer must be a registered person who does not fall into the following categories:

• Blacklisted or whose registration is suspended or blocked
• Failed to file the return by the due date for two consecutive tax periods
• Failed to file Income Tax Return by the due date
• Failed to file two consecutive monthly or annual withholding tax statements.