Changes in Active Taxpayer List Update

The Active Taxpayers List (ATL) is a crucial register maintained by the Federal Board of Revenue (FBR) in Pakistan. It contains the names of individuals and entities that are deemed active taxpayers in the country. Inclusion in the ATL is essential for various tax-related purposes, such as accessing tax benefits and fulfilling tax obligations. FBR has proposed modification via S.R.O. 1448(I)/2024. FBR has issued S.R.O. 1638(l)12024 confirming the changes proposed via above SRO for inclusion of taxpayers in ATL after they have Late Filer status.

Criteria for Inclusion in the ATL

• File before Last Date:Individuals who file their income tax return for the latest tax year i. e 2024 by the due date (or any extension granted) currently October 31 2024 (which will mot likely not be extended) will be included in the ATL.
• Late Filing Surcharge: If a person files their income tax return after the due date or extended due date, they must pay a surcharge as specified in Section 182A(1)(a) of the Ordinance. If a return is filed after the due date, the taxpayer’s name can still be included upon payment of the surcharge specified in the Ordinance. If taxpayer will not be able to file tax return on time, they can still make it to ATL by paying ATL surcharge for tax year 2024.
• Inclusion in ATL: Once the surcharge is paid, the person’s name will be included in the ATL.
• Sub-rule (3): The phrase “last day of February, next following” is replaced with “on the next day after the due date or extended due date.” This means that the ATL will be updated on the day following the due date or extended due date for filing the return.
• Sub-rule (4): The phrase “every Sunday at 24:00 hours” is replaced with “daily basis.” This indicates that the ATL will be updated on a daily basis, ensuring that it always reflects the most recent information.
• Late Filer Category: After inclusion of Late Filer Category taxpayers who have filed tax returns of 2023 were being classified as Late Filers. ATL list was published on 1st March every year. After the new notification ATL will be published after the end of last date of filing of tax returns for latest tax year.

New Companies or Associations:

• Incorporation or Formation: If a company or association of persons is incorporated or formed after June 30th of the latest tax year, they are generally not required to file a tax return for that year.
• Inclusion in ATL: Despite not being required to file a return, the name of such company or association of persons will still be included in the ATL.

AJK & GB Residents:

• Filing Requirement: The person must have filed a tax return with either the Azad Jammu and Kashmir Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue.
• Address Requirement: Both the person’s temporary and permanent addresses must be located within Azad Jammu and Kashmir or Gilgit-Baltistan.
• Inclusion: If these conditions are met, the person’s name will be included in the active taxpayers’ list.

Updates to the ATL

The ATL is regularly updated to reflect changes in taxpayer status. The following updates are made:

• Daily Updates: The ATL is updated on a daily basis to ensure that it always contains the most current information.
• Due Date Updates: The ATL is updated on the next day after the due date or extended due date for filing income tax returns.

• These amendments aim to streamline the process of maintaining the ATL by simplifying the inclusion criteria and updating the list more frequently. The notification also clarifies the definition of the ATL for improved transparency.