Taxes are a necessary part of any society, and Pakistan is no exception. The government of Pakistan uses taxes to fund a variety of public services, including education, healthcare, and infrastructure.
Individuals and businesses in Pakistan are required to file income tax returns on an annual basis. Filing taxes is a necessary part of life for most people, but it can be a daunting task. The good news is that filing taxes in Pakistan is relatively straightforward. Here is a step-by-step guide on how to file your taxes in Pakistan:
- Register for a National Tax Number (NTN). You can register for an NTN online or by visiting the nearest Federal Board of Revenue (FBR) office.
- Gather your income and expense information. You will need to gather all of your income and expense information for the tax year. This includes your salary, interest income, dividends, capital gains, and any other sources of income. You will also need to gather information about your expenses, such as mortgage interest, property taxes, charitable contributions, and medical expenses.
- Choose a tax filing method. There are two ways to file your taxes in Pakistan: online or by mail. If you choose to file online, you can do so through the FBR’s website. If you choose to file by mail, you can download the appropriate forms from the FBR’s website and mail them to the address provided.
- Complete your tax return. Once you have gathered your information and chosen a filing method, you can complete your tax return. If you are filing online, you will need to enter your information into the FBR’s website. If you are filing by mail, you will need to fill out the appropriate forms and mail them to the FBR.
- Pay your taxes. Once you have completed your tax return, you will need to pay your taxes. You can pay your taxes online, by mail, or in person at a bank or FBR office.
Who Needs to File a Tax Return in Pakistan?
In Pakistan, anyone who has earned taxable income during the tax year is required to file a tax return. Taxable income includes salaries, wages, commissions, profits, and other forms of income.
- Individuals who have a taxable income of more than PKR 600,000
- Businesses that have a taxable income of more than PKR 400,000
- Individuals and businesses that have received taxable income from foreign sources
- Individuals and businesses that have registered their National Tax Number (NTN).
- Individuals and businesses that have installed commercial meter in their name.
- Individuals and businesses that have assets registered to their name.
How to File a Tax Return in Pakistan
There are many ways to file a tax return in Pakistan: Some of the commons are listed here.
- To file your tax return online, you will need to create an account on the Federal Board of Revenue (FBR) website. Once you have created an account, you can login and file your tax return electronically.
- To file your tax return by mail, you will need to download and print the income tax return form from the FBR website. Once you have filled out the form, you can mail it to the FBR office in your jurisdiction.
- To file your tax return at office, you will need to visit your nearest FBR office. They will help you to file your tax returns.
- To file your tax returns via tax consultant in Pakistan, you will need to hire some professional tax consultant. They will help you to file your tax returns while charging you for their services.
What Documents Do I Need to File My Tax Return?
When you file your tax return, you will need to provide the FBR with the following documents:
- National Tax Number (NTN)
- Proof of identity
- Proof of address
- Proof of income
- Any other documents that may be required by the FBR
What Happens If I Don’t File My Tax Return?
If you do not file your tax return by the deadline, you may be subject to a penalty. The penalty for not filing a tax return is 0.2% of your taxable income, up to a maximum of Rs. 100,000.
You may also be subject to interest on any unpaid taxes. The interest rate is 10% per annum.
Filing taxes in Pakistan can be a daunting task, but it is important to remember that it is a legal requirement. By understanding the filing requirements and filing your tax return on time, you can avoid penalties and interest.