Don't wait until the last minute to file Tax Returns! Use coupon code EarlyBird on our store for 20% off on all of our services. Valid through July 31, 2026. Dismiss

Do you know?

Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. •

₨ 0

Do you know?

Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • The withholding tax on banking and financial institution profits is set at 20% for those on the Active Taxpayers’ List, but jumps to 40% for those off the list. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Profits on debt from mutual funds deriving 50% or more income from debt carry a huge 50% tax for Non-Filers, compared to 25% for Filers. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% for Non-Filers. • Registering a 2001cc to 2500cc luxury vehicle incurs a 7% tax for Active Filers, but a staggering 21% tax for Non-Filers. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as Non-Filers. • Payments made to non-resident sportspersons incur a 15% tax if they are on the ATL, and a massive 30% if they are non-ATL. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Commercial importers bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active Filers. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • Winning a prize bond or crossword puzzle means you lose 15% to taxes as an Active Filer, but a massive 30% if you are a Non-Filer. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Commercial importers of Part-II goods face a 3.5% withholding tax if they are Filers, but the rate doubles to 7% for Non-Filers. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Buying a high-end 2501cc to 3000cc vehicle leaves Filers with a 9% tax bill, but absolutely punishes Non-Filers with a massive 27% tax rate. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. •

DNFBPs Registration with FBR: Online Process & Required Documents

Navigating the registration process for Designated Non-Financial Businesses and Professions (DNFBPs) in Pakistan can seem daunting. But fear not! This comprehensive checklist equips you with the key requirements and documents to ensure a smooth and successful registration with the FBR.

Are you a real estate agent, jeweler, accountant, lawyer, or provide trust and company services in Pakistan? If so, your business might be classified as a Designated Non-Financial Business and Profession (DNFBP). While the term may sound technical, it simply identifies businesses and professions, outside of traditional financial institutions, that play a crucial role in preventing money laundering and terrorism financing.

What Exactly are DNFBPs?

Criminals and terrorists don’t limit their illicit financial activities to banks. They often utilize sectors like real estate to conceal illegal funds, purchase precious jewels to store wealth, or engage lawyers and accountants to manage complex financial schemes. Recognizing this vulnerability, international bodies such as the Financial Action Task Force (FATF) have identified DNFBPs as key areas requiring regulatory oversight to combat financial crime effectively.

Which Business Falls in DNFBPs?

Real Estate Agents: When facilitating property transactions, you need to verify the identities of buyers and sellers, maintain records of the transaction details, and report any suspicious activities.
Jewelers & Precious Metal/Stone Dealers: For cash transactions of Rs. 2 million or more, you are required to keep detailed records and be vigilant in identifying and reporting any unusual transactions.
Accountants & Lawyers: When assisting clients with financial transactions, you must practice due diligence to know your clients and report any potential red flags.
Trust and Company Service Providers & Notaries: Similar to the above, conducting thorough customer due diligence, maintaining comprehensive records, and reporting suspicious activities are crucial responsibilities.

Laws Protecting Pakistan and Your Business

Pakistan takes the fight against money laundering and terrorism financing seriously. To this end, the government has implemented laws such as the Anti-Money Laundering Act, 2010 (AMLA), and the AML/CFT Regulations, 2018. These regulations are not intended to burden legitimate businesses but rather to foster a safer and more transparent financial environment for everyone.

What are DNFBPs Required to Do?

If your business falls under the DNFBP category, you have a vital role to play in protecting Pakistan from financial crime. Here are your key responsibilities:

Know Your Customer (Customer Due Diligence): You must verify the identity of your clients by checking their CNIC or other official identification documents. It’s essential to ask questions and understand who you are conducting business with.
Keep Records: Maintain detailed records of all transactions, including the identities of the parties involved, the amounts exchanged, and the services rendered.
Report Suspicious Activity: If you observe any transaction or client behavior that seems unusual or raises suspicion, you are legally obligated to report it to the relevant authorities. It’s always better to err on the side of caution.

Registering Your DNFBP: A Step-by-Step Guide

If your business is classified as a DNFBP, registering with the Federal Board of Revenue (FBR) is mandatory. Here’s a visual guide on how to apply for DNFBP process:

How to Apply:

Submit Online: Apply electronically through the FBR IRIS portal.
Select Form: Click on “Form of Registration as DNFBP filed voluntarily”. Check the NTN or Registeration number and select the Tax Year.
Be Patient: Processing time may vary.
Get Certificate: Upon approval, you will receive your DNFBP registration certificate.

Required Documents for DNFBP Registration

Character Certificates/Police Records: For senior management and beneficial owners. Attach the Police Certificate in the pdf form as shown in the image.

Verifying Your DNFBP Registration Status

You can easily verify your DNFBP registration status online through the FBR portal:

Go to the FBR DNFBP Verification Page.
Select “DNFBP Registration Status”.
Choose CNIC or NTN and enter your number.
Enter the Captcha code.
Click “Verify”.

The system will display your registration details if you are registered. It’s advisable to keep a record of this verification for your files.

How to Unregister DNFBP

There may be circumstances where a registered DNFBP needs to be de-registered, such as ceasing operations, changing the business model so it no longer qualifies as a DNFBP, or undergoing structural changes like mergers or acquisitions. Here’s a step-by-step guide to apply for DNFBP de-registration through the FBR via the IRIS portal:

Step-by-Step Guide to DNFBP De-registration

Access the FBR IRIS Portal: Visit the official FBR IRIS portal and log in using your CNIC (for individuals) or NTN (for businesses) and password.
Navigate to the Registration Section: Find the “Registration” tab on the dashboard and click on “Application for De-Registration of DNFBP”.
Complete the Application Form: Fill out the required fields, including your NTN/CNIC, business/professional name, and the reason for de-registration (e.g., business closure, change in activities, merger/acquisition).
Upload Supporting Documents: Attach scanned copies of relevant documents, such as:
- Proof of business closure (e.g., de-registration certificate, cancellation of licenses).
- Any other relevant documents requested by the FBR.
Review and Submit the Application: Double-check all the information and attached documents before clicking “Submit” to send your de-registration request to the FBR.
Track Your Application Status: Monitor the progress of your application in the “Completed Tasks” section of your IRIS account. The FBR will notify you of any required corrections or the approval status.

Important Considerations for DNFBP De-registration:

Ensure all information provided is accurate and complete to avoid delays or rejection.
Provide clear and valid supporting documents that substantiate your reason for de-registration.
If you are unsure about the de-registration process or have complex business circumstances, consider seeking assistance from a tax expert or legal advisor.

In Simple Words:

Being a DNFBP in Pakistan comes with important responsibilities aimed at protecting your business, the financial system, and the country from the threats of money laundering and terrorism financing. By registering with the FBR, complying with the regulations, and even de-registering when necessary, you are playing a vital role in preventing financial crime and contributing to a stronger, more trustworthy economy. Don’t hesitate to seek professional advice if you need help navigating these processes. Stay informed, stay compliant, and contribute to a safer Pakistan!

Mah Noor

An aspiring Chartered Accountant with a growing footprint in Pakistan’s tax education and digital finance content landscape. Currently, I work as the Editor-in-Chief at TaxationPk, where I lead content strategy, quality control, and editorial planning for tax-related blogs, news articles, and social media outreach.

Articles: 36

5 Comments

Faraz

February 27, 2025 / 2:38 pm Reply

After completing my registration as DNFBP i rcvd the following notice ! if you can plz guide

Dear DNFBP,
You are hereby requested to fill in the offsite monitoring Questionnaire as required under FBR DNFBP SRO/Regulations.
Kindly go to the ‘Proforma Tab’, whereby you will find the Questionnaire. Fill it online, and submit online, within seven days of the receipt of this notice. Your cooperation will be highly appreciated. In case of non-compliance or partial compliance, action as per law will be initiated.
- Binte Zafar
  
  February 27, 2025 / 6:26 pm Reply
  
  you can fill that form online via logging into iris account
  - Faraz
    
    February 28, 2025 / 12:55 pm Reply
    
    unable to find that form! thats y posted here if anyone can plz share the link!!
Dr,Jehanzeb Hussain Changazie Advocate

October 17, 2024 / 11:35 am Reply

DNFBP certificate can download from FBR easily but unknowable you make it complicated.
- Hayat Akbar
  
  October 17, 2024 / 3:28 pm Reply
  
  Thanks for your feedback, the article is about how to register not how to download? Your feedback seems totally irrelevant to the content.