Key takeaways
- The Active Taxpayer List (ATL) shows who has filed a return with the FBR.
- People not on the ATL generally pay much higher withholding tax on property, bank profit, dividends and vehicle registration.
- Recent Finance Acts have added limits on large purchases by people who are not on the list.
- Filing a return each year is usually cheaper than paying non-filer rates.
What "filer" really means
In Pakistan, "filer" is everyday shorthand for someone on the Active Taxpayer List. You get on the list by filing your annual income tax return. Banks, property registrars, excise departments and brokers check the ATL before deducting tax, and apply higher rates to anyone not on it.
Where non-filers pay more
Pakistan's withholding regime generally charges people who are not on the ATL a substantially higher rate, often double, on transactions such as:
- buying and selling property (sections 236K and 236C);
- profit on bank deposits and dividends;
- registering a vehicle;
- cash withdrawals above the daily threshold.
Rates change with each Finance Act, so check the current rates for the transaction you plan before you commit.
Limits on large purchases
Recent budgets have gone further than higher rates. They allow restrictions on people who are not on the ATL buying higher-value property, vehicles and securities. If you are planning a major purchase in Pakistan, confirm your status — and the current thresholds — first.
Why this matters for overseas Pakistanis
Many Pakistanis in the UAE keep assets at home: a plot, a family house, a bank account or shares. Even if your UAE salary is outside Pakistani tax (see tax residency for UAE-based Pakistanis), these assets are where non-filer rates bite.
Filing a return, even a simple one, usually costs less than the extra withholding on a single property deal.
How to get on the list
- Register on IRIS, the FBR's online portal, using your CNIC or NICOP.
- File your income tax return for the latest tax year, with a wealth statement if required.
- Check your status on the FBR's ATL search once the list is updated.
- File on time every year. Late filers can be added after paying a surcharge, but filing on time avoids it.
Before you file
- Confirm your residency status for the year.
- Gather records of Pakistan-source income and your assets in Pakistan.
- Keep your wealth statement consistent from year to year; differences raise questions.
General information, not tax advice. Rules change; check the latest FTA guidance or speak to a registered tax agent about your situation.
FAQ
What is the Active Taxpayer List?
The ATL is the FBR's list of people and businesses who have filed their income tax return. It is updated regularly and is what banks, registrars and other withholding agents check.
I filed late. Can I still get on the ATL?
Yes. You can be added after filing late by paying a surcharge, which for individuals has been Rs. 1,000. Check the current amount on the FBR website.
Do I need a return if my only income is a UAE salary?
If you are non-resident and have no Pakistan-source income, filing may not be compulsory. Many overseas Pakistanis still file to keep filer status for property, banking and investment transactions.
About the author
Zubair Akbar
Chartered Accountant, Group CFO and FTA-approved Tax Agent (TAAN 20059440) with 16+ years in audit, tax and finance across the UAE and Pakistan.
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