WHAT IS ACTIVE TAX PAYER LIST (ATL) AND NON ACTIVE TAX PAYER LIST (NON ATL) IN PAKISTAN?

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.