Active Taxpayer Advantages & Disadvantages in Pakistan

Federal Board of Revenue, Government of Pakistan has published the public message to understand the advantages and disadvantages of Active Taxpayer.


Demerits of not being on Active Taxpayers list (ATL)


⇒ Withholding Tax will be charged at double rates

⇒ FBR Will assess the application tax without serving any notice

⇒ Legal action will be taken resulting into imprisonment of 1 to 3 years

⇒ Fine will be charged on late submission of Income Tax Returns


Read More: Pay Tax Online Through E-Payment FBR


Advantages on Active Taxpayers List (ATL)


⇒ Enlistment in the Active Taxpayers List

⇒ Almost half of the withholding tax as compared with the inactive taxpayers

⇒ 5.5% tax on imports (Raw material)

⇒ 6% tax on imports (commercial)

⇒ 15% tax on dividends

⇒ 10% tax on bank and savings scheme profit wort.h upto Rs. 0.5 million & 15010 on above Rs. 0.5 million

⇒ 4.5% tax on sale of goods by persons except companies

⇒ 10% tax on provision of services by person except companies

⇒ 7.5% tax on contract executed by person except companies

⇒ 15% tax on prize money of prize bonds

⇒ 12% tax on commission

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

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

⇒ No tax on cash withdrawal of more than Rs. 50,000/- from banks

⇒ No tax on bank transactions (cross cheque, pay order, demand draft etc)

⇒ 1% tax on purchase of property

⇒ 10% tax on sale by auction

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

⇒ 10% tax deduction for payment against advertisement to non-resident person


Read More: FBR Point of Sale POS Invoicing System


Disadvantages on Active Taxpayers List (ATL)


⇒ No Enlistment in the Active Taxpayers List

⇒ Almost double tax rates

⇒ 11% tax on imports (raw material)

⇒ 12% tax on imports (commercial)

⇒ 30% tax on dividends

⇒ 20% tax on bank and savings scheme profit worth upto Rs. 0.5 million & 30% on above Rs. 0.5 millio

⇒ 9% tax on sale of goods by persons except companies

⇒ 20% tax on provision of services by persons except companies

⇒ 15% tax on contract executed by person except companies

⇒ 30% tax on prize money of prize bonds

⇒ 24% tax on commission

⇒ Annual token fee of vehicles 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 withdrawal of more than Rs. 50,000/- from banks

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

⇒ 2% tax on purchase of property

⇒ 20% tax on sale by auction

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

⇒ 20% tax deduction for payment against advertisement to non-resident person


Read More: FBR Sales Tax Clarification 2019


File Your Annual Income Tax Returns
Get onto the Active Taxpayers List (ATL)
Last Date to File Income Tax Returns
30 September, 2019

Remember: Filing of Income Tax Returns is mandatory for all persons with annual income of Rs. 4,00,000/- or more

Active Taxpayer Advantages & Disadvantages in Pakistan

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