Advantages and Disadvantages of Active Taxpayers in Pakistan

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The Federal Board of Revenue, Government of Pakistan has published a public notice to understand the pros and cons of active tax payer. If you have submitted your income tax return online on FBR IRIS then you must know about all the benefits of active taxpayers in Pakistan.


Disadvantages of not being in the Active Taxpayer List (ATL).


⇒ Withholding tax will be charged at double rates.

⇒ FBR will check application tax without any notice.

⇒ Legal action will be taken which will result in imprisonment of 1 to 3 years.

⇒ Penalty will be charged. Late filing of income tax return

Also check.:


Benefits on Active Taxpayer List (ATL)


⇒ Enrollment in the list of active taxpayers

⇒ About half of withholding tax compared to passive taxpayers

5.5% tax on imports (raw materials)

⇒ 6% tax on imports (commercial)

⇒ 15% tax on profits

⇒ 10% tax on bank and savings scheme profits up to Rs. 0.5 million above and Rs.15010 0.5 million

⇒ 4.5% tax on sale of goods by individuals other than companies

⇒ 10% tax on supply of services by person other than companies

⇒ 7.5% tax on contracts entered into by persons other than companies

⇒ 15% tax on prize money of prize bonds

⇒ 12% tax on commission

⇒ Annual vehicle token fee from Rs. 800/- to Rs.10,000/

⇒ Withholding tax on vehicle registration from Rs. 7,500/- to Rs.250,000/-

⇒ No tax on cash withdrawals above Rs. 50,000/- from banks.

⇒ No tax on bank transactions (cross cheques, pay orders, demand drafts etc.)

⇒ 1% tax on property purchase

⇒ 10% tax on sale by auction

⇒ Tax on import of mobile phones from Rs. 70/- to Rs.200/-

⇒ 10% tax deduction for payment in lieu of advertisement to a non-resident person


Disadvantages of Active Taxpayer List (ATL).


⇒ There is no entry in the list of active taxpayers.

⇒ Tax rate almost doubled

⇒ 11% tax on imports (raw materials)

⇒ 12% tax on imports (commercial)

⇒ 30% tax on profits

⇒ 20% tax on bank and savings scheme profits worth up to Rs. 0.5 million and 30% 0.5 million on above Rs

⇒ 9% tax on sale of goods by individuals other than companies

⇒ 20% tax on supply of services by individuals other than companies

⇒ 15% tax on contracts entered into by persons other than companies

⇒ 30% tax on prize money of prize bonds

⇒ 24% tax on commission

⇒ Annual vehicle token fee from Rs. 1600/- to Rs.20,000/

⇒ Withholding tax on vehicle registration from Rs. 15,000/- to Rs.500,000/-

⇒ 0.6% tax on cash withdrawals above Rs. 50,000/- from banks.

⇒ 0.6% tax on bank transactions (cross cheque, pay order, demand draft etc.)

⇒ 2% tax on property purchase

⇒ 20% tax on sale by auction

⇒ Tax on import of mobile phones from Rs. 140,/- to Rs.400/·

⇒ 20% tax deduction for payment in lieu of advertisement to a non-resident person


File your annual income tax return.
Join the Active Taxpayer List (ATL).
Last date for filing income tax return
September 30, 2019

remember: Filing of income tax return is mandatory for all individuals. Annual Income Rs.4,00,000/- or more;

Advantages and Disadvantages of Active Taxpayers in Pakistan

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