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Comparing Filer and Non Filer in Pakistan

Comparing Filer and Non Filer in Pakistan

Comparing the pros and cons of filer and non-filer, non-filer also have to pay 20 percent tax on their dividends. Filers have different advantages when buying real estate.

A concept was introduced for filers and non-filers to promote tax culture, prevent non-compliance with tax laws and address the concerns of citizens who pay taxes as tax evaders due to their higher business costs. A filer within the meaning of the Regulation is a taxable person whose name appears in the list of active taxpayers published from time to time by the Federal Tax Office or who is the holder of a tax card. A "non-filer" is a person who is not a filer.

According to FBR (Federal Board of Revenue):

The Federal Financial Supervisory Authority (FBC) has determined the difference between applicants and non-notifies of income tax returns at double withholding tax rates for non-applicants under the Income Taxation Act 2001 by the Finance Act. In the case of late filing of the tax return, taxpayers would have to wait a full year to become an active taxpayer. Similarly, taxpayers would only have to pay half of the withholding tax compared to the tax paid by non-taxpayers. A non-filer cannot buy a property worth more than Rs 5 million, whereas active taxpayers are not excluded from purchasing real estate. When transferring real estate, the active taxpayer pays only one percent tax against two percent tax paid by non-registrants, and the tax registrant pays two percent on the total amount of acquired property, while the non-registrar pays four percent on the same.

Withholding Tax:

It is a governmental requirement that the payer of an income item must withhold or deduct taxes from the payment and pay these taxes to the government. In most countries, the withholding tax applies to earn income. Withholding tax is treated as a payment based on the final tax liability of the recipient. It may be reimbursed if, when filing a tax return, it is found that the tax liability of the beneficiary is less than the tax withheld from the State receiving the withholding tax, or if it is established that the recipient’s tax is an additional tax liability is more than the withholding tax.

Amount of Withholding Tax:

Withholding tax on income payments other than earned income is usually a fixed percentage. Income from work is often based on an estimate of the employee's final tax liability, determined either by the employee or by the state.


This term refers only to money or service that is currently owed to another party. One form of liability would be, for example, the property taxes that a homeowner owes to the municipalities.

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