Tax

Below is a brief overview of what corporate tax law compliance looks like in Pakistan. Filing GST returns and tax returns on time and correctly is one such responsibility. The FBR-mandated system is designed to keep businesses in the net, so they do not fall into the non-filers’ category while they also keep the revenue cycle running which otherwise could have gone on a penalty spree. This blog outlines everything you need to know about GST tax return And Tax Return Filing Will be discussing the GST tax in Pakistan, What is GST and tax return filing process in Pakistan. 

 

Understanding GST Tax in Pakistan 

GST tax in Pakistan, often referred to as Sales Tax, is a value-added tax levied on the supply of goods and services. There’s a standard rate of 17%, with a few adjustments here and there depending on items or sectors. It’s federally collected through the FBR and businesses that have a turnover beyond a certain threshold are required to register for it. This tax goes toward public services and infrastructure, so it is important for companies to know that and follow the law. 

For companies, GST is charged on business-to-business domestic sales (including imports) and collected at every stage of the supply chain. Input tax credits enable businesses to offset taxes they pay on purchases against those collected on sales, which lessens the overall burden. 

 

What is GST Return? 

What is GST return? In simple words, a GST return is a statement which a person registered under the FBR is required to file with the tax authorities. It contains the details of sales, purchases, output tax (i.e. tax collected from the buyer) and input tax for a certain period. This is equivalent of sales tax return in Pakistan because here GST basically sales tax structure. For most businesses, a report is filed once each month, detailing taxable activities that have occurred so that there are transparency and accuracy in the collection of taxes. 

If you don’t file these returns, you can be fined, forced to pay interest, or worse, face legal action, so knowing what GST return means your first step is toward becoming a complaint taxpayer. 

 

GST Return Filing in Pakistan: Step-by-Step Guide 

GST return filing in Pakistan has been simplified by digitalizing it, which is now an easier way for the firms to comply. It’s a complete online procedure using FBR’s IRIS portal. So, here’s how businesses can manage GST return filing in Pakistan: 

Registration: Prior to filing, be aware that your business should have an STRN. If not, go to the FBR website and sign up, answering questions about your business and supplying your NTN (National Tax Number) and supporting documents, such as bank certificates and a utility bill. 

Compile Documentation: You will require sale and purchase invoices, input/output tax report and any adjustments for the time period. 

Login to IRIS: Login to FBR e-portal with your username and password. Go to the “Sales Tax Return” area. 

Fill the Form: Follow the annex C (summary of sales and purchases) by 10th of the next month. Then complete the main return form with information on taxable supplies, exemptions and tax calculations. 

Make Payment: Net tax due should be paid by the 15th through Internet Banking or using online payment facility. 

File the Return: File the full return by the 18th. A confirmation will be produced by the system. 

This monthly cycle applies to most companies, though some may qualify for quarterly filing based on turnover. 

Sales Tax Return Filing Procedure in Pakistan 

The sales tax return filing procedure in Pakistan follows a standard timeline to ensure smooth operations. Under the Sales Tax Act, 1990, and recent updates in the Finance Act 2025, companies must adhere to these deadlines to avoid penalties. 

• Annex C Submission: (By the 10th): This should contain information on invoices/credit/debit notes. 
• Tax Due Date: Pay the tax by the 15th through bank pay over the counter or online. 
• Whole return filing: By the 18th, submit the comprehensive return electronically. 

Additional annexes such as Annex-H1 (for stock statements) may be required for traders or specific sectors which can be prepared in excel tools for better reliability. The process also promotes electronic filing to cut down errors and delay in processing. 

 

How to File GST and Tax Returns Online? 

Companies use the digital ecosystem of FBR to file their GST and tax returns. First, visit the FBR website and sign in to IRIS. It allows you to file both sales tax (GST), as well as income tax returns. 

For income tax, companies do this annually by the 31st of December (they file for the fiscal year ending on June 30). This consists in profit and loss accounts, withholding taxes and any advance revenues paid. 

Tips for smooth online filing: 

• Use secure internet and keep backups of documents. 

• Check the calculations to take input credits with certainty. 

• Stay updated on amendments, like those in the 2025 Finance Act, which may affect rates or procedures. 

 

GST Filing with CBM Consultants Expertise  

How tax and accounting firms are helping business owners to File GST and Tax Returns in Pakistan? They help in registration on FBR as well as correct preparation and hassle-free submission through IRIS portal. They analysis is supportive from compliance of Sales Tax return filing process in Pakistan to minimizing errors in GST Return Filing in Pakistan to providing effective tax planning advice. By outsourcing, firms can reduce time, prevent penalties and concentrate on growth while professionals take care of GST tax in Pakistan in all sense of GST tax terms.  

 

File Sales Tax Return: Common Challenges and Solutions 

Each business in Pakistan needs to periodically File Sales Tax Return to fulfil up the requirements of the Federal Board of Revenue (FBR). Although there is an easy way to file your return through online modes like the iris portal. But, businesses in Pakistan face several issues which may result in errors, penalties, and delays. Knowing these challenges helps businesses File GST and Tax Returns online seamlessly, with full confidence.  

Typical Sales Tax Return Filing Issues 

• Errors in Tax Calculations: Common issues include incorrect input and output tax calculations.

Tip: Hire tax consultant agencies for accurate GST with-holding. 

• Lack of Documentation: Businesses sometimes fail to keep invoices, tax challans, or purchase records.

Solution: Maintain organized file records for return filing and audit. 

• Missing Deadlines: Late returns can lead to penalties, surcharges, or account suspension.

Key Solution: Request reminders or hire professional companies for filing. 

• Technical Issues with Online Filing: File returns ahead of deadline to avoid last-minute problems. Refer to FBR helpline or tax consultant for further assistance.

 

Conclusion  

It is important for the companies from Pakistani to know how to file GST and tax returns in Pakistan. Also, by following the sales tax return filing steps in Pakistan and using online facilities, companies can easily do that. Remember, timely filing is not just an issue of penalties, it keeps a healthy cycle going in the financial ecosystem. So If you are businessmen then visit FBR portal today and check your registration status. 

In Pakistan Federal Board of Revenue, (FBR) has established new category of taxpayer presently called Late Filer which has been installed by amending Income Tax Ordinance, 2001 through Finance act 2024. There are important tax planning implications for the taxpayer in this classification in relation to the tax rates and the nature of the transactions. This post clarifies who is considered a late filer in Pakistan, what is the late filer tax rate in Pakistan, and how to check late filer status and what are the ways to avoid late filing fines, etc. 

 

Who is a Late Filer in Pakistan? 

A late filer in this context is somebody who does not file income tax returns by the due (or extended) date of filing prescribed by the FBR. For FY 2023-24, the last date was 31 October 2024. You will be considered a late filer in Pakistan if you file your tax after the deadline. Only taxpayers who had obtained their NTN after 30th June, 2024 and filed their Return of Income for 2024-25 can be late filers till they fulfill certain conditions for getting back their status as Active Filer. 

Key points about late filers in Pakistan: 

• Failing the deadline: You submitted your 2023-24 tax return on or after November 1, 2024. 

• New Registrants: If you have an NTN that was issued after 30 June 2024 for participants who have already filed, but would like to become an Active Filer, you cannot become an Active Filer immediately after being registered, even if you have filed your 2024-25 return on time. 

• Surcharge Payment: ATL surcharge shall be paid by late filers in order to be listed in the Active Taxpayer List (ATL) which is Rs 1,000 for individuals, Rs 10,000 for Association of Persons (AOPs) and Rs20,000 for companies. 

 

Late Filer Tax Rate in Pakistan 

There are consequences of late filing in Pakistan. For example, increased rates of withholding tax on certain types of transactions, such as sale/purchase of immoveable property. Late filers are allotted in Active Taxpayer List after deposit of the surcharge and such rates are higher than the rates at which tax is to be levied on non-filers. Here’s a brief of late filer tax rate for Pakistan: 

• Property Transactions: Late filers pay 6% advance tax, while Active Filers pay 3% and non-Filers 10%. Property purchases late filing rates range from 1.5% to 5.5%, higher than Active Filers. 

• Capital Gains on Property: A flat 15% tax rate applies to late filers on gains from immovable property acquired after July 1, 2024, regardless of the holding period. 

• Other Transactions: Late filers and active filers face similar income tax rates for transactions like banking and vehicle registration, with car registration tax ranging from Rs 7,500 to Rs 250,000. 

There is also a minimum penalty of Rs.1,000 per day for late filing and non-filers or late filers who have any further amount to be paid in taxes may also have to bear a default surcharge (interest) of KIBOR plus 3% per quarter. 

 

How to Check Late Filer Status in Pakistan 

You can check if you are a late filer or not under Pakistan, by checking your Active Taxpayer List (ATL) status in Pakistan, through the following options: 

Online via FBR’s IRIS Portal: 

Go to the IRIS Portal (https://iris.fbr.gov.pk) and enter your NTN or your CNIC along with the password. 

Visit the ATL status checker – Are you listed as Active Filer, Active (Late Filer) or Inactive Taxpayer? 

SMS Verification: 

Send your CNIC number to 9966 to get status of your ATL through SMS. This is an easy way to determine if you are a late filer or an Active Filer. 

Befiler App or Website: 

You can now check your ATL status on third-party platforms such as Befiler. Some of these tools also provide a friendly interface to follow your filer status and get updates about FBR deadlines. 

Download ATL List: 

Visit the FBR website (www. fbr. gov.pk, download the daily ATL list and find your name or NTN to verify your status. 

To get back to Active Filer from Active (Late Filer) status, file your 2024-25 tax return and pay any surcharge by the September 30, 2025, deadline. 

 

Consequences of Late Filing 

There are several consequences of late filing as mentioned: 

• Penalties: There is a minimum fine of Rs 1,000 for each day of late filing along with fines of Rs 10,000 for a salaried individual and Rs 100,000 for not providing a wealth statement. 

• Higher Taxes: Latent file taxpayers will pay higher withholding taxes and capital gains taxes as per above. 

• Legal Consequences: Any person who does not file a return may be subject to a fine or imprisonment of not more than one year, or both. It is otherwise somewhere where a return is demanded by a notice from the Commissioner. 

• Financial limitations: Holders of these identification cards may also face financial limitations where the number of transactions may be restricted to Eligible Persons only. 

 

 

How to Avoid Being a Late Filer 

To prevent being a late filer and incurring its costs: 

• File Early: File your 2024-25 tax return prior to 30 September 2025 in order to achieve Active Filer Status on the ATL issued 1 October 2025. 

• NTN Early Registration: If you are a new taxpayer then register for an NTN prior to 1st July 2025 to become eligible for ATL of 2025. 

• Pay Surcharges Timely: If you missed the 2023-24 deadline, all you have to do in order to retain ATL status is file and return and pay the ATL surcharge (Rs. 1,000 in the case of individuals). 

• Seek Professional Assistance: Take help of tax consultants or use portals such as Befiler or Tax Jurist Pakistan to file correctly and on time. 

• Monitor Deadlines: Watch for FBR updates for deadline extension, as the previous 2023-24 deadline was extended to October 31, 2024. 

 

Choosing CBM Consultants to Stay Compliant: 

The role played by a CBM Consultants in Pakistan is to save citizens and companies being labelled as a late filer. We handle keeping track of deadlines on FBR’s, follow up appealing time frame reminders not adding anything new here, and also help in sorting all the financial correspondence. Our experts help in preparing and filing your taxes the right way and the right time ensures your name remains in the Active Taxpayer List (ATL), therefore, shielding you from the much higher late filer tax rates as well as penalties. CBM Consultants also offer expert advice for tax planning and compliance management besides defending you in an event of FBR’s notice. In a nutshell, with professional help, you remain in compliance, too, with no unexpected financial burdens and a clear conscience. 

 

Conclusion 

It is important for the taxpayer base of Pakistan to comprehend what the late filer is as it will lead to heavy additional tax and penalties. Knowing who is a late filer in Pakistan and the late filer tax rate in Pakistan and knowing how to check late filer status will help you take control of your situation to ensure compliance. Late Filing is better than no filing at all but filing for your 2024-25 tax return on time before 30 September 2025. It can guarantee you lower tax rates and financial benefits as an Active Filer. Leverage the FBR’s IRIS portal, SMS service or apps such as Befiler to manage your tax liabilities and steer away from the dangers of being a late filer in Pakistan.