What is the difference between a filer and a non-filer in Pakistan?

A filer is a taxpayer whose name appears on the FBR Active Taxpayer List because they filed their return on time. A non-filer is not on that list. The difference is money: a filer pays 1.25% advance tax on a property purchase where a non-filer pays 10.5%, and 20% on bank profit where a non-filer pays 40%.

Do I need an NTN if I already have a CNIC?

No. For an individual in Pakistan the CNIC number serves as the National Tax Number, so there is no separate NTN to apply for. Registering on the FBR IRIS portal with the CNIC is enough to begin filing.

What does Tax Year 2026 actually cover?

Tax Year 2026 covers income earned between 1 July 2025 and 30 June 2026, and it is the return filed during 2026. FBR tax years run July to June and are named after the calendar year in which they end.

What is the ATL surcharge and how is it different from the late filing penalty?

They are two separate charges. The ATL restoration surcharge under Section 182A is Rs. 25,000 for an individual and is the fee to be added back to the Active Taxpayer List after missing the deadline. The late filing penalty under Section 182 is charged on top, at Rs. 1,000 per day with a minimum of Rs. 5,000.

What is a wealth statement and who has to file one?

A wealth statement is a declaration of assets, liabilities, and personal expenses filed alongside the return under Section 116. Resident individuals are generally required to file one, and its figures must reconcile with declared income — an unexplained rise in net assets is the usual trigger for an FBR query.

Does a higher tax slab apply to my whole salary?

No. Pakistan uses progressive slabs, so each rate applies only to the income falling inside its own band. The first Rs. 600,000 of salaried income is taxed at 0% regardless of total earnings, which is why the effective rate paid is always lower than the marginal slab rate.

Reference

Pakistani tax terms, explained

Filing in Pakistan means reading forms written in FBR shorthand — ATL, NTN, IRIS, Section 236K. This page defines 38 of the terms you will meet on the IRIS portal, in an FBR notice, or in a return, in plain English. Every rate and section number quoted here comes from the same FBR-sourced table our tax calculator uses.

Rates below apply to Tax Year 2026 — income earned from 1 July 2025 to 30 June 2026, filed by 30 September 2026.

Status & registration

FBR ایف بی آر: The Federal Board of Revenue, Pakistan's federal tax authority. It administers income tax and sales tax, maintains the Active Taxpayer List, and runs the IRIS filing portal.
NTN: National Tax Number — the identifier the FBR issues to a taxpayer. For an individual in Pakistan, the CNIC number serves as the NTN, so no separate number is applied for.
CNIC: Computerised National Identity Card number. For individuals it doubles as the NTN and as the IRIS username, which is why a salaried person needs no separate tax registration number.
ATL Section 181A: Active Taxpayer List — the weekly list of taxpayers who filed on time. Appearing on it is what makes someone a filer, and it is the single thing that determines which withholding tax rate applies to a bank transaction, property deal, or vehicle purchase.
Filer فائلر: A taxpayer whose name appears on the Active Taxpayer List. Filers pay the lower withholding rate everywhere it applies — for example 1.25% on a property purchase instead of 10.5%.
Non-filer نان فائلر: A person not on the Active Taxpayer List. Non-filers pay substantially higher withholding tax on banking, property, and vehicle transactions, and face closer FBR scrutiny.
Late filer: A category introduced by the Finance Act 2022 for taxpayers who file after the deadline. A late filer sits between filer and non-filer: on the ATL, but at rates worse than someone who filed on time.

Filing

IRIS: The FBR's online filing portal at iris.fbr.gov.pk. Registration, return filing, wealth statements, and notices all pass through it. The username is the CNIC or NTN.
Income tax return گوشوارہ: The annual declaration of income, deductions, and tax paid, submitted to the FBR through IRIS. Filing it on time is what places a taxpayer on the Active Taxpayer List.
Tax Year: The FBR year label, which runs July to June and is named for the calendar year it ends in. Tax Year 2026 covers income earned from 1 July 2025 to 30 June 2026 and is filed during 2026.
Filing deadline: The last date to file an individual return for the tax year. For Tax Year 2026 it is 30 September 2026. Filing on or before it places the taxpayer on the ATL with no penalty and no surcharge.
Wealth statement Section 116: A statement of assets, liabilities, and personal expenses filed alongside the return. Resident individuals are generally required to file one, and the figures must reconcile with declared income.
Wealth reconciliation: The part of the wealth statement that explains the change in net assets between two years using declared income, expenses, and inflows. An unexplained increase is what typically triggers an FBR query.
ATL restoration surcharge Section 182A: The fee to be added back to the Active Taxpayer List after missing the deadline. For individuals it is Rs. 25,000, raised from Rs. 1,000 by the Finance Act 2026. It is separate from the late-filing penalty.
Late filing penalty Section 182: A penalty charged for filing after the deadline, at Rs. 1,000 per day of default with a minimum of Rs. 5,000 for individuals. It is charged in addition to the ATL restoration surcharge, not instead of it.
Tax notice: A formal communication from the FBR through IRIS asking a taxpayer to explain, amend, or substantiate something in a return. Notices carry response deadlines, and ignoring one escalates the matter.

Income & tax

Taxable income: Total income for the year after deductible allowances, and the figure the tax slabs are applied to. It is not the same as gross salary.
Salaried individual: For slab purposes, a person whose salary income is at least 75% of taxable income. Salaried individuals are taxed on a separate, lower slab table than business income.
Tax slab: A band of taxable income with its own rate. Pakistan uses progressive slabs, so a higher rate applies only to the income inside that band, not to the whole salary.
Marginal rate: The rate charged on the next rupee earned — the rate of the slab a taxpayer currently sits in. It is almost always higher than the effective rate actually paid across all income.
Effective rate: Total tax divided by total taxable income. Because the first Rs. 600,000 is taxed at 0% and each band is taxed separately, the effective rate is always below the marginal rate.
Basic exemption: The income below which no tax is charged. For salaried individuals in Tax Year 2026 this is Rs. 600,000 per year. Earning below it does not remove the benefit of filing to stay on the ATL.
High-earner surcharge Section 4AB: A surcharge of 9% of the income tax payable, charged to salaried individuals whose taxable income exceeds Rs. 10,000,000. It is a surcharge on the tax, not an extra slab on the income.
Withholding tax WHT: Tax deducted at source by a bank, employer, registrar, or other withholding agent and paid to the FBR on the taxpayer’s behalf. Filer and non-filer rates differ sharply, which is where ATL status pays for itself.
Advance tax: Tax collected before the return is filed — through salary deduction, on a property transfer, or at vehicle registration. It is credited against the final liability, and any excess is refundable.
Tax credit: An amount subtracted from tax payable rather than from income, for example for certain donations or investments. A credit is worth more than a deduction of the same size.
Deductible allowance: An amount subtracted from total income before the slabs are applied, such as Zakat paid under the Zakat and Ushr Ordinance. It reduces taxable income, not tax directly.
Refund: Money owed back when tax withheld during the year exceeds the liability computed in the return. It has to be claimed through the return; the FBR does not issue it automatically.

Statutory sections

Section 149: The provision under which an employer deducts income tax from salary each month and deposits it with the FBR. The tax already deducted appears as a credit in the annual return.
Section 151: Withholding on profit paid by a bank on an account or deposit — 20% for filers and 40% for non-filers. Secondary tax sites frequently misquote this by citing the rate for other kinds of profit.
Section 236K: Advance tax collected when immovable property is purchased. Filers pay a flat 1.25% at every value band; non-filers pay 10.5% up to a fair market value of Rs. 50 million, and more above it.
Section 236C: Advance tax collected when immovable property is sold or transferred — 2.75% for filers and 11.5% for non-filers.
Section 116: The requirement to file a wealth statement and a wealth reconciliation alongside the return of income.

Entities & services

AOP: Association of Persons — a partnership-like entity where two or more people carry on business together. It is taxed as an entity in its own right, on the non-salaried slab table.
Sole proprietor: An individual running a business in their own name. Business income is declared in the individual return and taxed on the non-salaried slabs, not the salaried ones.
STRN: Sales Tax Registration Number, issued to a business registered for sales tax. It is separate from the NTN and required before sales tax returns can be filed.
PSEB: Pakistan Software Export Board. Registration with it is the route through which IT and IT-enabled services exporters access the concessionary tax treatment available to that sector.
Commissioner Inland Revenue: The FBR officer with authority over a taxpayer’s assessment, notices, and appeals. Correspondence about a notice, and the first stage of an appeal, is addressed to this office.

Common questions about these terms

What is the difference between a filer and a non-filer in Pakistan?: A filer is a taxpayer whose name appears on the FBR Active Taxpayer List because they filed their return on time. A non-filer is not on that list. The difference is money: a filer pays 1.25% advance tax on a property purchase where a non-filer pays 10.5%, and 20% on bank profit where a non-filer pays 40%.
Do I need an NTN if I already have a CNIC?: No. For an individual in Pakistan the CNIC number serves as the National Tax Number, so there is no separate NTN to apply for. Registering on the FBR IRIS portal with the CNIC is enough to begin filing.
What does Tax Year 2026 actually cover?: Tax Year 2026 covers income earned between 1 July 2025 and 30 June 2026, and it is the return filed during 2026. FBR tax years run July to June and are named after the calendar year in which they end.
What is the ATL surcharge and how is it different from the late filing penalty?: They are two separate charges. The ATL restoration surcharge under Section 182A is Rs. 25,000 for an individual and is the fee to be added back to the Active Taxpayer List after missing the deadline. The late filing penalty under Section 182 is charged on top, at Rs. 1,000 per day with a minimum of Rs. 5,000.
What is a wealth statement and who has to file one?: A wealth statement is a declaration of assets, liabilities, and personal expenses filed alongside the return under Section 116. Resident individuals are generally required to file one, and its figures must reconcile with declared income — an unexplained rise in net assets is the usual trigger for an FBR query.
Does a higher tax slab apply to my whole salary?: No. Pakistan uses progressive slabs, so each rate applies only to the income falling inside its own band. The first Rs. 600,000 of salaried income is taxed at 0% regardless of total earnings, which is why the effective rate paid is always lower than the marginal slab rate.