Pakistan income tax, answered
Short, plain answers about filing a return, deadlines, the Active Taxpayers List, wealth statements and NTN registration.
Key dates each year
- Tax year starts
- 1 July
- New withholding rates from the June budget apply
- Tax year ends
- 30 June
- Income up to this date goes in the return
- Filing deadline
- 30 September
- Returns and wealth statements for individuals
- Company deadline
- 31 December
- Returns for companies
Filing a return
- Who has to file an income tax return in Pakistan?
- You must file if your taxable income for the year is above Rs. 600,000. The law also requires a return from some people with lower income, for example owners of larger homes or plots, owners of vehicles above 1000cc, and members of chambers of commerce or professional bodies. Filing is also the only way onto the Active Taxpayers List.
- When is the deadline for filing?
- Individuals and associations of persons file by 30 September for the tax year that ended on 30 June. Companies file by 31 December. FBR sometimes extends the deadline; in 2025 it moved to 31 October.
- What happens if I file late?
- The penalty for a late return under section 182 is at least Rs. 10,000 if most of your income is salary, and Rs. 50,000 for others. It is reduced if you file within three months of the deadline. If you file after the deadline, you are added to the Active Taxpayers List once you pay the ATL surcharge of Rs. 25,000 as an individual. Instead of paying, an individual can give an undertaking not to buy property for six months.
- Do I need to file a wealth statement?
- Every resident individual who files an income tax return must file a wealth statement with it, whatever their income (section 116). Non-residents file one only if FBR asks for it. Residents with foreign income of USD 10,000 or more, or foreign assets of USD 100,000 or more, also file a foreign income and assets statement.
Active Taxpayers List
- What is the Active Taxpayers List (ATL)?
- It is FBR's list of people and businesses that have filed their returns. Banks, property registrars and vehicle registration offices check it to decide whether to deduct tax at filer or non-filer rates. FBR issues the Active Taxpayers List after the filing deadline and adds people who file late once they meet the ATL conditions.
- How do I check my ATL status?
- Use the ATL search on FBR's website with your CNIC, or send an SMS with ATL, a space and your 13-digit CNIC to 9966. On our annual plan we check it for you and tell you if it changes.
Tax credits and deductions
- Do pension or VPS contributions reduce my tax?
- Yes. Contributions to an approved pension fund under the Voluntary Pension System earn a tax credit at your average tax rate on up to 20% of your taxable income (section 63).
- Is zakat deductible?
- Yes. Zakat paid under the Zakat and Ushr Ordinance, such as zakat deducted by your bank, is subtracted from your taxable income (section 60).
- Do charitable donations reduce tax?
- Donations to approved non-profit organisations, paid through a bank, earn a tax credit at your average tax rate on up to 30% of your taxable income (section 61).
NTN and registration
- What is an NTN?
- Your National Tax Number is your registration with FBR. For individuals, FBR uses your CNIC number once you are registered on the IRIS portal. You need to be registered to file a return.
- How do I register for an NTN?
- Register on FBR's IRIS portal with your CNIC, a mobile number and email address in your name, and details of your income. Our NTN service costs Rs. 1,999 and takes 3 to 5 business days.
Rather not do it yourself?
Our tax team files your return and wealth statement and keeps you on the Active Taxpayers List for Rs. 5,999 a year.
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