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Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • 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. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • 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. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • 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. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% 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. • 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. • 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. • 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. • 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. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% 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. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • 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. • Importing basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • 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. • Cash withdrawals by a person whose name does not appear on the Active Taxpayers’ List are hit with an automatic 0.8% advance tax. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • 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. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Capital gains arising on the disposal of certain debt securities are taxed at 15% for Filers, but double to 30% for Non-Filers. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • 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. • The sale of petroleum products is taxed at 12% for Filers and exactly double that at 24% 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. • 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. • 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. • 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. • 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. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% 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. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • 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. •

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Do you know?

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. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • 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 basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as 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. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active 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. • 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 bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active 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. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • 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. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • 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. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • 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. • 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. • Winning a raffle, lottery, or sales promotion prize costs Non-Filers a whopping 40% in tax, compared to 20% for Filers. • 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 basic goods from Part-I of the Twelfth Schedule costs Active Taxpayers just 1% in tax, while Non-Filers have to pay 2%. • Companies generating rental income from immovable property pay a 15% tax if they are Active Filers, but face a 30% rate as 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. • Purchasing a 1601cc to 1800cc vehicle will cost Non-Filers a 9% tax, which is three times the 3% rate given to Active 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. • 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 bringing in Part-III items are hit with a 12% tax rate if they are Non-Filers, compared to only 6% for Active 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. • Active Filers importing CKD kits for Electric Vehicles pay a minimal 1% tax, whereas Non-Filers pay double at 2%. • Pensions under 10 million rupees remain 100% tax-exempt for everyone, no matter what your filing status is. • Registering a 1000cc motor vehicle costs Filers just 1% in tax, while Non-Filers are penalized with a 3% tax. • Salaries under Rs. 600,000 are completely tax-free, maintaining a 0% rate regardless of your taxpayer status. • Dividends from Real Estate Investment Trusts (REITs) and general companies cost Active Filers 15% in tax, but Non-Filers lose a massive 30%. • Selling rice, cotton seed, or edible oils comes with a low 1.5% tax for Filers, but a 3% tax for Non-Filers. • If you receive dividends from Independent Power Purchasers (IPPs), Filers pay a 7.5% tax while Non-Filers surrender 15%. • 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. • Buyers of 1301cc to 1600cc cars pay a 2% advance tax if they are Filers, but Non-Filers pay exactly triple at 6%. • 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. • Providing IT and IT-enabled services costs Active Taxpayers just 4% in withholding tax, while Non-Filers must pay 8%. • Payments to electronic and print media for advertising services are taxed at just 1.5% for Active Taxpayers, compared to 3% for Non-Filers. • Importing pharmaceutical products carries an 8% tax for Non-Filers, which is exactly double the 4% rate applied to Active Taxpayers. • 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. •

How to Add Your Business in FBR IRIS (2025-26) – Step-by-Step Guide for Sole Proprietors in Pakistan

Starting a business in 2025? Here’s a complete guide to adding your sole proprietorship in FBR IRIS. Includes step-by-step instructions, FAQs, and document tips.

Faiza Ehsan
December 17, 2024
Tax Toolkit

If you’re planning to start a new business in Pakistan as a sole proprietor, updating your profile on FBR’s IRIS system is legally mandatory. Whether you’re a freelancer, trader, online seller, or running a physical shop, you must add your business details to your NTN through the FBR IRIS portal to remain compliant.

If you work remotely or offer digital services internationally, you must still declare your income. Learn how our remote worker tax filing service keeps you compliant and stress-free.

This complete and up-to-date guide explains exactly how to add a new business in FBR IRIS for tax year 2025-26, with answers to frequently asked questions and expert tips to avoid common mistakes.

Why You Must Add Your Business in IRIS

Under the Income Tax Ordinance, 2001, all individuals earning taxable income through a business must declare their business name, nature, location, and property status. Without this declaration:

You may face penalties under Section 114 or 182.
You won’t be able to claim business expenses or file a business income tax return.
Your NTN profile will be incomplete and flagged during audits.

Step-by-Step Guide to Add a Business in FBR IRIS (2025-26)

If you don’t already have an NTN (National Tax Number), you’ll need to register for one through FBR IRIS. Our team offers complete support for sole proprietor business registration, making the process seamless and hassle-free for beginners. Register business in Pakistan with FBR by following these simple steps:

Visit the official IRIS portal.
Use your CNIC and password to log in.
Go to the top menu and click “Registration.”
From the list, select: 181 – Form of Registration Filed for Modification (Income Tax)
Choose the appropriate tax year. For businesses started in 2025, select: Tax Year: 2026 (for the period July 2025 – June 2026) and click Continue.

Add New Business Details

Now the “Form of Registration Filed for Modification” will open. Navigate to the “Business” tab and click on the ➕ button to “Add New Business Detail.”

Click OK once all the following form fields are filled:

Field	Description
Business Name	Enter the name of your business (can be your own name or a unique name).
Acquisition Date	Use the current date or actual business start date.
Capacity	Select Owner.
Principal Activity	Choose your core activity (e.g., Freelancing, Retail, IT Consultancy).
Section/Category	Use the dropdown or search to find categories like “General Order Supplier,” “Information Technology,” etc.
Start Date of Business	Same as acquisition date.

Add or Link Business Address

In the “Business” tab, if no business address is showing, click “Link Business Address.” If Using Your Home Address, then select the property already listed in your profile. If the business address is different: then follow then click “Add Other Property” and enter the following details.

Property Type: Select the type of property (Residential, Commercial, Industrial).
Property Details: Provide details like house/flat/apartment, measurement unit (Marla, sq. ft., etc.), and area (optional).
Full Address: Enter the complete business address. Use the city search to select the correct city/town.
Capacity: Select your capacity (Owner, Tenant, Leaseholder, etc.). If the property is not in your name, select the appropriate option (e.g., “Benami Lease,” “Tenancy”) and enter value in the share.
Select the newly added property and click “OK.”

Upload Required Attachments

Now go to the “Attachments” tab and click the ➕ icon to upload each required document::

Evidence with 181 Form: Print and attach the modification form itself.
Proof of Tenancy/Ownership: Attach proof of ownership (if applicable). If renting, attach a rental agreement or any relevant document related to the property (even if in a family member’s name). This is a mandatory document.
Electricity Bill: Attach a recent electricity bill (not older than three months) for the business premises.

Submit the Form

After reviewing all information and attachments, click “Submit.”

The form will first appear in your Outbox, then move to Completed Tasks within 10–15 minutes.

Verify Business Profile Update

To verify the addition of the business, go to “Online Verifications” and select “Tax Payer Profile Inquiry.”

Enter your CNIC (without dashes) and captcha and click Verify.
Your updated business profile will now show under the “Business” section.

Key Points

This structured guide should make the process of adding a business to your NTN through the FBR IRIS portal clearer and easier to follow.

Accurate information is crucial.
All required documents must be attached.
If you encounter issues, consult the FBR’s help resources or contact their helpline.
The process may take some time for processing and reflection in the system.

Frequently Asked Questions (FAQs)

Do I need to add a business if I work as a freelancer or online seller?

No. Even if you earn from Fiverr, Upwork, YouTube, or Daraz, you might need to register your activity as a business with FBR.

Can I use my home address for business?

Absolutely. Many sole proprietors operate from home. Just make sure to declare your address in the IRIS form and provide utility bills or tenancy documents.

What documents are accepted as proof of address?

Ownership documents (registry, sales deed)
Rent agreement (even with a family member)
Benami Lease certificate
Electricity bill with matching address

What if the electricity bill is not in my name?

It’s okay. As long as the address matches, the bill is valid. Just ensure you mention the correct capacity (e.g., Tenant, Relative, etc.) when adding the address.

What happens if I don’t add my business in IRIS?

Your NTN will be considered incomplete, and you may:

Be disqualified from filing business returns
Lose eligibility for tax deductions
Face penalties during audit

Can I get help registering my business or submitting this form?

Yes! Our team at TaxationPk offers full support for sole proprietor business registration through FBR IRIS. Whether you’re filing your first return or need help uploading documents, we make the process fast, legal, and stress-free.

You can explore our business registration service for sole proprietors to get started with expert help, document preparation, and professional submission assistance.

Final Thoughts

Registering your business through FBR IRIS is not only a legal requirement — it’s the first step to becoming a compliant taxpayer in Pakistan. With the 2025-26 tax year already underway, this is the best time to add your business in IRIS and stay ahead.

Don’t risk penalties or rejection. Let our team at TaxationPk handle your sole proprietorship business registration, documentation, and submission — professionally, accurately, and fast.