The Federal Board of Revenue (FBR) maintains a crucial database called the Active Taxpayer List (ATL). This article explains the different types of ATLs and their significance.
What is the ATL?
The ATL is a dynamic list containing the names of taxpayers who file their tax returns to the FBR. There are three main categories of ATLs:
ATL for Income Tax: This list includes individuals and businesses who have filed their income tax returns for the previous year. It’s updated annually on March 1st, reflecting tax filings from the preceding year. For example, if you file your 2024 tax return on time, your name will appear on the ATL for Income Tax on March 1st, 2025. To be included earlier (real-time), you can file the previous year’s return and pay any late filing penalties.
ATL for Sales Tax: This list identifies businesses registered for sales tax and their compliance status. It details factors like filing history and the number of returns submitted.
ATL for AJK Residents: This list is specific to residents of Azad Jammu and Kashmir (AJK) who are registered taxpayers. It can take up to 48 hours for updates to reflect on this list.
Importance of the ATL:
Being included on the ATL signifies your compliance with tax filing requirements in Pakistan. This has numerous benefits:
- Improved access to financial services: Banks and other financial institutions often use the ATL to verify a customer’s tax status before approving loans or opening accounts.
- Enhanced business reputation: Inclusion on the ATL demonstrates your commitment to tax compliance, potentially fostering trust and credibility with business partners.
- Tax Savy: Non active taxpayer are charged 100% more taxes than persons appearing on ATL , in some cases upto 200%
How Banks Utilize the ATL:
While the FBR updates the ATL on an annual basis (March 1st for income tax), banks typically verify the ATL status on a weekly basis, usually on Mondays (though this might vary depending on the bank). This allows them to maintain updated information on their customers’ tax compliance.
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Conclusion:
Understanding the ATLs and ensuring your inclusion is crucial for smooth financial transactions and demonstrating good tax citizenship in Pakistan. By filing your tax returns on time and adhering to tax regulations, you can maintain a positive record on the ATL.
Hello Sir,
I have a query.
A person has registered in April 2024 through IRIS and accordingly he will file his return after Jun 2024 and within due date of Sept 2024.
The ATL will be published on 1st March 2025.
Will this tax payer considered as a filer from Sept 30 to Feb 28 before the list is published? Will this person benefit from the filer status for these 6 months before the list is published.
He will get Active status on March 01, 2025
Before that he will be Non Filer , all the rates n taxes of Non Filers will apply.
For immediate activation as Tax Filer one should file tax return for preceding tax year and pay fine as well.
New Taxpayers shall be Active by default, but thats not how FBR is operating.