Mohsin Siddiqui (Chief Reporter)
The Securities and Exchange Commission of Pakistan (SECP) has recently unveiled a regularization scheme aimed at companies that have defaulted on their tax returns for several years. This initiative, available from June 15, 2024, to September 15, 2024, offers these companies an opportunity to file their annual returns, documents, and accounts simply by paying the requisite filing fee. This move comes in the wake of the federal government’s ambitious new budget, which proposes a record Rs1.5 trillion in additional taxes to meet a Rs13 trillion revenue target for the upcoming fiscal year.
The SECP’s regularization scheme is a significant step towards enhancing compliance among businesses that have neglected their tax obligations. By providing a limited window for defaulting companies to regularize their status without incurring penalties, the SECP aims to streamline the filing process and encourage more entities to comply with Pakistan’s tax laws.
With the federal government indicating a crackdown on non-filers, many Pakistanis are now seeking guidance on how to file their income tax returns. The perceived complexity of the process can be daunting, but with a clear understanding of the steps involved, both individuals and businesses can navigate it efficiently. Below is a detailed guide on how to register with the Federal Board of Revenue (FBR) and file income tax returns to ensure compliance with the country’s tax regulations.
- Obtain a National Tax Number (NTN):
Visit the nearest Regional Tax Office (RTO). Complete the NTN application form. Submit the required documents, which include your Computerised National Identity Card (CNIC), proof of residence, bank statement, and an employer certificate if you are employed.
- Online Registration:
Access the FBR’s Iris portal. Click on “Registration for Unregistered Person”. Enter the necessary information and submit the form.
- Company Registration:
Register your company with the Securities and Exchange Commission of Pakistan (SECP). Obtain a company NTN. Follow similar steps on the Iris portal as mentioned above for businesses. After registration, log in to the Iris portal using your credentials.
Select the relevant income tax return form for the current tax year. Enter the necessary information regarding your income, expenses, and any deductions. Attach required documents such as salary certificates, bank statements, and proof of deductions.
Review all information for accuracy. Submit the return electronically through the Iris portal. Following submission, the FBR will process your return. You will receive an acknowledgment receipt confirming your status as a filer. Ensure you file your tax returns annually before the due date to maintain your filer status. Keep all financial records and documents organized for accurate filing and potential audits.
Lower Withholding Tax Rates: Enjoy reduced tax rates on various transactions, including banking, property, and vehicle dealings. Tax Exemptions and Deductions: Benefit from numerous tax exemptions and deductions available to filers. Improved Credit Rating: Enhance your creditworthiness and eligibility for loans. Legal Compliance: Fulfill legal requirements and contribute to national development.
