Important Update for Pakistani Taxpayers: Ensure Your Active Taxpayer Status

The Active Taxpayer List (ATL), managed by the Federal Board of Revenue (FBR) of Pakistan, holds significant importance for individuals and businesses in the country. This list encompasses taxpayers who have complied with specific tax regulations, offering them various benefits and preventing potential inconveniences. Being marked inactive on the ATL list can lead to complications, including:

To maintain your active taxpayer status, remember the upcoming ATL update on March 1st, 2024. This update will reflect the status of taxpayers based on their tax filings for the year 2023.

Who may be marked inactive on the ATL?

• Taxpayers who?haven't filed their tax returns?for the tax year 2023.
• Taxpayers who?filed their returns after the deadline of October 31st, 2023, unless they were granted an officially approved extension.

Benefits of Being on the ATL:

• Reduced Tax Deductions:?Individuals listed on the ATL enjoy?no tax deductions on cash withdrawals, whereas non-filers face a 0.6% tax deduction.
• Lower Tax Rates for Remittances and Card Transactions:?When remitting funds abroad or making payments via credit/debit cards, ATL listed individuals experience a?5% tax rate, compared to the 10% levied on non-filers.
• Improved Financial Convenience:?ATL status facilitates smoother financial transactions by avoiding unnecessary tax deductions at various points.

How can you check your ATL status?

The FBR offers multiple ways to verify your ATL status:

• Online:?Visit the FBR website (https://www.fbr.gov.pk/) and navigate to the "Services" section. Use the "Active Taxpayer List (ATL)" option to check your status by entering your CNIC (Computerized National Identity Card) number or National Tax Number (NTN).
• SMS:?Type "ATL (space) 13 digits CNIC" and send it to 9966.
• FBR Office:?Visit your nearest FBR office and inquire about your ATL status in person.

What to do if you are inactive?

If you discover that your name is not listed on the ATL, take immediate action to rectify the situation:

1. File your tax return: If you haven't already, prioritize filing your tax return for the year 2023 as soon as possible. You can do this online through the FBR website or with the assistance of a tax advisor.
2. Pay any outstanding taxes: Ensure the timely payment of any outstanding tax liabilities to avoid further complications.
3. Seek professional guidance: Consider consulting a tax advisor for personalized advice and assistance in navigating the process of becoming active on the ATL.

Remember: Maintaining an active taxpayer status is essential for smooth financial transactions and avoiding potential inconveniences. Regularly checking the ATL and adhering to filing deadlines are crucial practices for responsible tax compliance in Pakistan.