The Active Taxpayer List (ATL) is a list published by the Federal Board of Revenue (FBR) on the first day of March every year, which includes the names of individuals and entities who have filed their Income Tax Returns for the previous Tax Year within the due date. Inclusion in the ATL provides numerous benefits and privileges to taxpayers, making it a desirable status for taxpayers in Pakistan. In this blog post, we will discuss 15 benefits of being on the Active Taxpayer List.
- Lower Withholding Tax:
Persons appearing on the ATL have to bear almost half of the withholding tax as compared to inactive taxpayers. For instance, a 5% tax on import of Raw Material is payable by persons appearing on ATL, whereas 11% is payable by inactive taxpayers. - Lower Tax on Commercial Imports:
6% tax on commercial imports is payable by persons appearing on ATL, whereas 12% is payable by inactive taxpayers. - Lower Tax on Dividend:
Persons appearing on ATL have to pay a 15% tax on dividend, whereas inactive taxpayers have to pay 30%. - Lower Tax on Bank and Saving Schemes:
Persons appearing on ATL have to pay a 10% tax on profit from bank and saving schemes up to Rs. 500,000/-, and 15% above Rs. 500,000/-. Inactive taxpayers have to pay double. - Lower Tax on Sale of Goods:
5% tax shall be withheld on the sale of goods by the person appearing on ATL except companies, whereas 9% shall be withheld from inactive taxpayers. - Lower Tax on Provision of Services:
10% tax shall be withheld on the provision of services by the person appearing on ATL except for companies, whereas 20% shall be withheld from inactive taxpayers. - Lower Tax on Execution of Contracts:
7% tax shall be withheld on the execution of contracts by the person appearing on ATL except for companies, whereas 14% shall be withheld from inactive taxpayers. - Lower Tax on Prize Money:
Persons appearing on ATL have to pay a 15% tax on prize money of prize bonds, whereas inactive taxpayers have to pay 30%. - Lower Tax on Commission Payable:
10-12% tax on commission payable by persons appearing on ATL, whereas 20-24% is payable by inactive taxpayers. - Lower Annual Token Fee for a Vehicle:
Persons appearing on the ATL have to pay the Annual token fee for a vehicle from Rs. 800/- to Rs. 10,000/-, whereas an inactive taxpayer has to pay from Rs. 1600/- to Rs. 20,000/-. - Lower Tax on Vehicle Registration:
7,500/- to Rs. 250,000/- tax shall be withheld on vehicle registration from the person appearing on ATL, whereas Rs. 15,000/- to Rs. 500,000/- shall be withheld from inactive taxpayers. - Lower Tax on Purchase of Property:
2% tax payable on the purchase of property by the person appearing on ATL, whereas 7% tax payable on the purchase of property by inactive taxpayers. - Lower Tax on Sale by Auction:
10% tax payable on sale by auction by the person appearing on ATL, whereas 20% tax payable on by inactive taxpayers. - Lower Tax on Payment Against Advertisement to Non-Resident Persons:
3% tax deduction for payment against advertisement to non-resident persons by the person appearing on ATL, whereas 6% tax deduction from inactive taxpayers. - Increase in Creditworthiness:
Inclusion in the ATL increases the creditworthiness of an individual or entity, which is beneficial when seeking loans or credit facilities from banks or financial institutions.
Here are the steps on how to get on the ATL:
- Register for a National Tax Number (NTN)
- File your income tax return
- Pay any outstanding taxes
- Submit your NTN and tax return to the Federal Board of Revenue (FBR)
Once you have completed these steps, you will be added to the ATL. You can check your status online or by contacting the FBR.
Here are some additional benefits of being on the ATL:
- You may be eligible for tax credits and deductions that you would not be eligible for if you were not on the list.
- You may be able to get a loan or other financial assistance more easily.
- You may be able to get a government job.
- You may be able to travel more easily.
In conclusion, being on the Active Taxpayer List (ATL) or a filer can have significant financial benefits for individuals and businesses in Pakistan. These benefits include lower tax rates on various transactions, reduced withholding tax, and lower token fees for vehicle registration. It is important to note that inclusion in the ATL requires timely filing of income tax returns, and failure to do so can result in a surcharge to be included in the list. Therefore, it is advisable for taxpayers in Pakistan to ensure timely filing of their income tax returns to avail themselves of the benefits of being on the ATL.
