In Pakistan, the Federal Board of Revenue (FBR) maintains and publishes two classifications of taxpayers: the Active Taxpayers List (ATL) and the Non-Active Taxpayers List (Non-ATL). These lists play a crucial role in determining the tax status and privileges of individuals, businesses, and associations in the country.

The Active Taxpayers List (ATL) is updated weekly and includes the names and NTN/CNICs of taxpayers who have fulfilled their tax filing obligations for the latest tax year. The ATL status determines whether a filer qualifies for reduced withholding tax rates, incentives, and regulatory advantages.

Active Taxpayers List (ATL)

The ATL is a centralized digital record maintained by the FBR that includes individuals and entities who have submitted their income tax returns within the due date or with the payment of a surcharge as allowed under section 182A of the Income Tax Ordinance, 2001.

To be included in the ATL for Tax Year 2024 (effective from March 1, 2025), a taxpayer must:

• File their income tax return for the relevant tax year (2024)

• Pay any applicable tax liabilities

• Submit the return before the deadline or pay the ATL surcharge after the due date

FBR publishes the ATL every Sunday at https://www.fbr.gov.pk

Non-Active Taxpayers List (Non-ATL)

The Non-ATL comprises individuals and entities who failed to comply with their tax filing obligations. This includes those who did not submit their income tax return by the deadline or failed to pay applicable taxes.

A taxpayer will be moved to Non-ATL status if they:

• Do not file their return for the latest tax year

• File after the deadline without paying the ATL surcharge

• Are blacklisted or declared inactive by FBR due to non-compliance

Once in the Non-ATL, the taxpayer loses several tax-related privileges and faces higher tax burdens and scrutiny.

How to Check Your ATL Status

FBR allows any person to verify ATL status online through the following methods:

• Visit the ATL portal at https://iris.fbr.gov.pk/public/txp/ATL

• Select the taxpayer type (Individual, AOP, Company)

• Enter your CNIC or NTN

• Click “Verify” to see whether you’re on the ATL

The ATL can also be checked via the FBR Mobile App and SMS service by sending your CNIC/NTN (without dashes) to 9966.

Benefits of Being an ATL Taxpayer

• Lower Withholding Tax Rates
ATL individuals and businesses enjoy reduced tax deduction rates on various transactions including bank withdrawals, vehicle registration, property purchase, dividend income, and professional services.

• Eligibility for Tax Incentives
Being on the ATL allows access to tax credits, tax rebates, and reliefs under certain sections of the tax law.

• Avoidance of Penalties
Filing timely returns and maintaining ATL status helps avoid penalties under Section 182 of the Income Tax Ordinance.

• Business Credibility
Companies and individuals listed on ATL are perceived as compliant and trustworthy by banks, suppliers, and government agencies.

• Access to Contracts and Tenders
Many government and private tenders require bidders to be ATL-compliant to qualify for procurement processes.

• Ease of Refund Claims and Tax Audits
Being on ATL ensures faster processing of tax refunds and fewer chances of being selected for audit.

Drawbacks of Being a Non-ATL Taxpayer

• Higher Withholding Tax Rates
Non-ATL taxpayers are subject to significantly higher rates on banking transactions, imports, property transfers, and professional payments.

For example:

• Cash withdrawals above Rs. 50,000 attract 0.6% tax for Non-ATL vs. 0.3% for ATL

• Sale or purchase of immovable property attracts double the tax for Non-ATL persons

• No Access to Tax Refunds and Credits
Non-filers are not eligible for various tax rebates, credits, or refund claims.

• Ineligibility for Government Contracts
Most public sector procurement departments now require bidders to be ATL compliant.

• Increased Risk of Penalties and Notices
Non-ATL individuals are more likely to face scrutiny, fines, or legal notices for non-compliance or evasion.

• Reduced Business and Financial Credibility
Banks, investors, and vendors often prefer working with compliant taxpayers who appear on the ATL.

How to Get Included in the ATL

If you are not on the ATL and want to be included, follow these steps:

1. File your income tax return for the latest tax year through the IRIS portal

2. If the deadline has passed, pay the ATL surcharge as per SRO 1891(I)/2022

   • Rs. 1,000 for individuals

   • Rs. 10,000 for AOPs

   • Rs. 20,000 for companies

3. Ensure the return is complete with wealth statement (if required)

4. Your name will be added to the next ATL update after submission

ATL Validity and Updates

• The ATL is valid for one year, beginning March 1 of the following year after the filing deadline

• For example, ATL for Tax Year 2024 is effective from March 1, 2025, to February 28, 2026

• FBR updates the list weekly to include new compliant taxpayers and remove those who default

Importance in the Digital Economy

With the government’s digitalization efforts, ATL status is now directly integrated with:

• Banks and financial institutions

• NADRA and property registration authorities

• Excise and Taxation Departments

• Corporate portals and SECP databases

Maintaining ATL status ensures uninterrupted access to financial, legal, and business services.

In Punjab, vehicle-related taxes are administered by the Excise, Taxation and Narcotics Control Department under the Motor Vehicle Ordinance, 1965 and the Motor Vehicle Tax Act, 1958. These taxes generate significant revenue for the provincial government and include token tax, withholding tax, professional tax, and capital value tax (CVT). Vehicle tax obligations differ based on engine capacity, ownership status, and whether the taxpayer is on the FBR Active Taxpayer List (ATL).

Methods of Payment

• Online via ePay Punjab App or FBR’s e-portal

• Designated bank branches using printed challans

• Excise and Taxation Offices across Punjab

Token Tax (Motor Vehicle Tax – MVT) and Professional Tax

Capital Value Tax (CVT) on Motor Vehicles

• Imposed on vehicles with engine capacity above 1300cc

• Tax rate: 1% of the vehicle’s value (as per Excise’s valuation tables)

• Tax Period: 5 years from the fiscal year of first registration

• Depreciation: Annual deduction of 10% in vehicle value

• Exemption: After 6 years, no CVT is applicable

Withholding Tax on Vehicle Registration (Effective FY 2025)

Applies at the time of first registration or transfer of ownership. Rates vary based on engine size and taxpayer status.

Important Notes

• Filing status as Filer or Non-Filer significantly affects tax liabilities

• Registration or transfer of vehicles cannot proceed unless taxes are paid

• Withholding tax paid at registration is adjustable against annual income tax liability

• Non-filers also face restrictions on purchasing certain categories of vehicles

In Pakistan, partnerships are governed under the Partnership Act, 1932 and taxed under the Income Tax Ordinance, 2001. For taxation purposes, all partnerships—whether registered or unregistered—are classified as Associations of Persons (AOPs). The taxation of AOPs depends on the nature of income, total taxable income, and compliance status with the Federal Board of Revenue (FBR).

Types of Partnerships in Pakistan

General Partnership
This is the most common form of partnership in Pakistan, where all partners are personally liable for business obligations. Each partner shares in the profits and losses of the firm either equally or according to an agreed ratio.

Limited Partnership
This structure includes both general and limited partners. Limited partners contribute capital and share profits but are not involved in daily operations and are only liable up to their capital investment.

Taxation Structure for Partnerships (AOPs)

Income from Business or Profession
AOPs are taxed on their net business income as per the progressive tax slabs notified by FBR each year. For Tax Year 2025, the latest income slabs are:

• Up to PKR 400,000 – 0%

• PKR 400,001 to 600,000 – 5% of the amount exceeding PKR 400,000

• PKR 600,001 to 1,200,000 – PKR 10,000 + 10% of the amount exceeding PKR 600,000

• PKR 1,200,001 to 2,400,000 – PKR 70,000 + 15% of the amount exceeding PKR 1,200,000

• PKR 2,400,001 to 3,000,000 – PKR 250,000 + 20% of the amount exceeding PKR 2,400,000

• PKR 3,000,001 to 4,000,000 – PKR 370,000 + 25% of the amount exceeding PKR 3,000,000

• Above PKR 4,000,000 – PKR 620,000 + 30% of the amount exceeding PKR 4,000,000

Capital Gains
Short-term capital gains on securities (held less than one year) are taxed at 15% to 20%
Long-term gains (held more than one year) are taxed at 0% to 15% depending on holding period
Capital gains on immovable property may also be taxed under separate slabs defined by FBR

Rental Income
Rental income earned by AOPs is taxed separately at progressive slab rates ranging from 15% to 30%, based on total rental income in a tax year

Dividend Income
Dividend income received by the partnership is taxed at 15% for ATL (Active Taxpayers) and 30% for non-ATL members

Profit on Debt
Income from profit on bank deposits and debt instruments is taxed at 15% (ATL) or 30% (non-ATL)

Other Applicable Taxes on Partnerships

Sales Tax
If the partnership is involved in the sale of goods or taxable services, it must be registered for sales tax. The general sales tax rate is 18% under the Sales Tax Act, 1990

Federal Excise Duty (FED)
Applicable only if the partnership is engaged in manufacturing or providing excisable goods or services

Withholding Tax (WHT)
AOPs are required to deduct and deposit withholding tax under various sections such as payments to contractors, rent, and salaries

Advance Tax Under Section 147
All AOPs with taxable income must pay advance tax on a quarterly basis

Minimum Tax Under Section 113
If an AOP reports a loss or low taxable income, a minimum tax of 1.25% of turnover is applied (subject to exceptions and thresholds)

Partnership Registration and Tax Compliance

• Choose a business name and check availability with the Registrar of Firms

• Draft a Partnership Deed detailing profit-sharing ratios, roles, and capital contributions

• Register the firm with the Registrar of Firms under the applicable provincial law

• Obtain National Tax Numbers (NTNs) for both the firm and its partners from FBR

• Register for Sales Tax if applicable

• File annual income tax return and wealth statement through IRIS system

• Register with Social Security (PESSI) and Employees’ Old-Age Benefits Institution (EOBI) if employing staff

Custom duty in Pakistan is a form of indirect tax levied on goods imported into the country. It is regulated by the Federal Board of Revenue (FBR) under the provisions of the Pakistan Customs Act, 1969 and is enforced through the Pakistan Customs Tariff (PCT). The main objective of custom duty is to generate revenue, protect domestic industries, encourage local manufacturing, and control the flow of goods into the country.

As of 2025, Pakistan’s custom duty framework continues to evolve based on international trade agreements, local economic needs, and budgetary goals. Here is an updated overview of the structure, types, and applicability of custom duties on imports.

Purpose of Custom Duty in Pakistan

• Revenue Generation: A significant source of government revenue.

• Trade Regulation: Helps control the quantity and quality of imports.

• Domestic Protection: Shields local industries from excessive foreign competition.

• Balance of Payments Control: Reduces trade deficits by discouraging excessive imports.

Types of Custom Duties on Imports in Pakistan (2025)

1. Basic Customs Duty (BCD):

   • This is the standard import duty applicable on almost all goods.

   • Rates typically range from 0% to 35%, depending on the nature of goods and their HS (Harmonized System) code.

   • Specified in the First Schedule of the Pakistan Customs Tariff (PCT).

2. Additional Customs Duty (ACD):

   • Imposed under Section 18(3) of the Customs Act.

   • Usually applied on top of the BCD for selected items, especially luxury or non-essential imports.

   • The standard rate ranges from 2% to 7%, although certain items may be subject to higher rates.

   • Notified through Statutory Regulatory Orders (SROs) and budgetary laws.

3. Regulatory Duty (RD):

   • Levied to control the import of specific goods, especially to discourage non-essential or harmful imports.

   • Frequently used as a policy tool to stabilize foreign exchange reserves.

   • RD can range from 5% to 100% depending on the product type.

   • Applied via SROs issued by the FBR and revised periodically.

4. Sales Tax on Imports:

   • Standard 18% Sales Tax applies to most imported goods.

   • Collected at the import stage under the Sales Tax Act, 1990.

   • Exemptions or reduced rates may apply for essential items, raw materials, and PCT-based incentives.

5. Federal Excise Duty (FED):

   • Applied on specific categories of goods such as tobacco products, beverages, motor vehicles, and luxury goods.

   • Varies depending on product type – can be a percentage or fixed amount per unit.

   • Also applicable on selected imported services.

6. Customs Valuation Duty:

   • Duties are calculated based on the assessable value of goods, which is determined under the Valuation Rules, 2000 using:
     • Transaction value method
     • Identical/similar goods method
     • Deductive or computed value method

7. Advance Income Tax on Imports:

   • Collected at import stage under Section 148 of the Income Tax Ordinance, 2001.

   • Treated as advance tax adjustable against the taxpayer’s annual income tax liability.

   • Rates vary based on the importer’s status (ATL vs. Non-ATL) and product category.

Key Influencing Factors for Custom Duties

• Nature and HS Code of Goods:

• Each product is assigned a tariff code that determines applicable rates.

• Trade Agreements and FTAs:

• Pakistan’s Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs) with countries like China, Malaysia, Sri Lanka, and members of SAFTA provide concessional or zero-duty access to specific goods.

• Importer’s Profile:

• Active Taxpayers (on the ATL) enjoy lower rates for Advance Income Tax and sometimes preferential treatment.

• Government Budget and SROs:

• Duties and exemptions are frequently revised through annual Finance Acts and SROs, so businesses must stay updated.

How to Check Applicable Custom Duty?

Importers can verify applicable duties using the following tools:

• Pakistan Customs Tariff (PCT) available on www.fbr.gov.pk

• WeBOC Portal (Web-Based One Customs) for automated import declarations

• FBR Valuation Rulings for updated price assessments

• SROs (Statutory Regulatory Orders) for special exemptions and duties

Penalties and Non-Compliance

Failure to comply with customs regulations may result in:

• Confiscation of goods

• Heavy penalties or fines

• Suspension of WeBOC access

• Blacklisting from import activities

Tax registration in Pakistan is a mandatory process for individuals, businesses, companies, trusts, AOPs, and even non-residents intending to carry out taxable activities within the country. The Federal Board of Revenue (FBR) has streamlined this process through its IRIS portal, allowing taxpayers to enroll electronically and obtain a National Tax Number (NTN). The requirements differ based on the category of the taxpayer. Below is the complete and updated list of requirements for Tax Year 2025.

Requirements for Tax Registration – Individuals:
An individual must ensure the following documents and information are available before initiating e-enrollment through FBR’s online system:
• CNIC (for residents), NICOP (for overseas Pakistanis), or valid Passport (for foreigners)
• Cell phone number registered in the individual’s name
• Active email address
• Nationality
• Residential address (permanent or current)
• Accounting period (normally July to June)
In case of business income:
• Business name (if applicable)
• Business address (shop/office/online business address)
• Principal business activity (as per FBR’s activity codes)
In case of salary income:
• Name and NTN of employer
• Employer’s address
In case of rental income:
• Complete address of the rented property

Requirements for Tax Registration – Companies & AOPs:
The Principal Officer (CEO, Managing Partner, or Trustee) must provide the following information:
• Legal name of company or Association of Persons (AOP)
• Registered business name (if different)
• Official business address (head office or main place of business)
• Accounting period (typically July–June)
• Business landline/contact number
• Valid email address
• Mobile number of the principal officer (must be active and registered)
• Principal business activity and sector code
• Address of industrial establishment or branch office
• Type of entity: Public Limited, Private Limited, Trust, NGO, Society, Modaraba, Small Company, etc.
• Date of incorporation/registration
Required documentation based on entity type:
• Certificate of Incorporation from SECP (for companies)
• Registration certificate & Partnership Deed (for registered firms)
• Partnership Deed (for unregistered AOPs)
• Trust Deed (for Trusts)
• Society Registration Certificate (for societies/NGOs)
• Name, CNIC/NTN of the representative handling tax matters

Additional Requirements for Directors/Shareholders in Companies & Partners in AOPs:
For each director and shareholder holding 10% or more shares in a company, or for each partner in an AOP, the following is required:
• Full name
• CNIC, NTN, or Passport number
• Percentage of shareholding or profit-sharing ratio

Requirements for Non-Resident Companies with Permanent Establishment in Pakistan:
Non-resident companies with a branch or office in Pakistan must provide the following:
• Legal name of the foreign company
• Local business address in Pakistan
• Accounting period (as per business setup)
• Local phone number of the branch or representative office
• Description of principal business activity
• Address of main place of business or industrial unit in Pakistan
• SECP registration number and incorporation date of the Pakistani branch
• Name, address, and CNIC/Passport of the Principal Officer or Authorized Representative
• Authority letter appointing the principal officer or authorized representative
• Mobile number and email address of the authorized representative

Requirements for Non-Resident Companies Without Permanent Establishment in Pakistan:
For foreign entities not having a physical presence but conducting taxable activities in Pakistan (such as digital services), the following information is required:
• Name of the company
• Foreign business address
• Names and nationalities of all directors or trustees
• Chosen accounting period
• Name and address of authorized representative in Pakistan
• Authority letter for appointment of authorized representative
• Mobile number and email address of the authorized representative
• Principal business activity (e.g., software development, digital content, consultancy)
• Foreign tax registration or incorporation certificate issued by the relevant authority in the home country

Once the relevant details are submitted and verified, the FBR issues the National Tax Number (NTN) and adds the taxpayer to the IRIS system. This enables the taxpayer to file returns, claim exemptions, generate tax certificates, and receive refunds.

Failure to register can result in penalties, non-compliance notices, or restrictions from conducting certain financial and commercial transactions.