FBR Tax Return: Your Ultimate Guide to Tax Regime

fbr tax return

Hope you have heard about the term FBR Tax Return and might not know the details of what it actually is! Let us elaborate its concept and importance for Pakistani nationals.

Every country in the world has a system of taxation that enables the state to collect revenue from the people of the state who are generating income from the resources of the country. Likewise, Pakistan has its own system of taxation which enables the government to tax people and generate revenue to run the affairs of the state, meet its financial obligations, and do some development expenditures.  

The major taxation system in Pakistan is administrated by the federal government’s autonomous institution called the Federal Board of Revenue (FBR) which is responsible for the collection and administration of various taxes, including income tax.

By law, individuals and businesses are required to report their financial position, income, deductions, and applicable tax liabilities to FBR for the income they earn in Pakistan. A formal document is used for this purpose and is called a tax return. A tax return (ٹیکس گوشوارہ) is actually a comprehensive document to overview an individual’s or business’s financial activities and is used to calculate the amount of income tax they have to pay to the government.

So, the FBR tax return refers to the submission or filing of income tax return with the Federal Board of Revenue (FBR).

FBR tax return filing is not only an essential part of the taxation process but also a legal obligation for Pakistani nationals. It helps the government assess the applicable taxes and their collection thereon to ensure transparency in financial transactions. It also allows taxpayers to claim tax exemptions and deductions if they are eligible.

FBR tax returns are normally filed on an annual basis, after the end of each financial year ending on June 30th. The specific forms and requirements for tax filing may vary, based on the taxpayer’s business type, income source, and other parameters. The FBR may charge penalties and take legal action in case of failure to file tax returns or evasion of taxes, if anyone does so.

fbr tax return

The FBR has devised a comprehensive system to facilitate the public with taxation filing and support services. Many of the tax services are offered on the electronic payments portal of FBR. The electronic payments shortly typed as e-payment portal facilitate the payments of Income Tax, Sales Tax, Excise Duty, Sales Tax Withheld, Income Tax Return, Closure of Audit, Tax on Immovable Property, Capital Value Tax (CVT) on motor vehicles, and on movable and immovable foreign assets. The e-payment also provides search services for Active Tax Payers for Sales Tax and Income Tax, National Tax Number (NTN) Inquiry, and finding the 8th check digit of NTN. The portal also provides the facility of the invoice, document, and notice verification.

The FBR electronic services are shortly called efbr or e fbr due to the URL of the portal consisting of the letter and the abbreviation.

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Income Tax Registration for FBR Tax Return

For filing of income tax return, a person must be registered with FBR – Federal Board of Revenue.

The individuals can register for tax with the FBR iris portal which is a dedicated platform developed for filing tax returns.

The companies and associations of persons can register with their relevant regional tax office shortly called RTO.

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Types of Tax Registration

  • Individuals
  • Companies and Association of Persons
  • Non-resident Companies with local permanent establishment
  • Non-resident companies with no local permanent establishment

Basics for Tax Payers Registration

An individual, an AOP, or a company is said to be registered for tax if they have successfully completed the enrollment with the iris portal.

Once enrolled the system will provide the registration number or NTN and a password. On iris, the 13-digit Computerized National Identity Card (CNIC) number is the National Tax Number or registration number for individuals. While the companies and AOPs are provided with a 7-digit NTN as a registration number.

This login information is used to log in to the iris system for onward filing of tax returns.

Requisite for Tax Registration

Tax Registration for Individuals

The following information or documents should be available for proceeding with the registration with iris

  • NADRA Issued CNIC/NICOP or Passport number
  • Active Cell Phone Connection
  • Working email address
  • Current Nationality
  • Residence address
  • Accounting period to be followed for filing of tax returns
  • Name and NTN of the employer in case of salary income
  • In case of business income, complete business name and address and principal activity
  • Property address in case of property as income source
tax registration for individuals

 Tax Registration for Company and Association of Persons

The principal officer of the company or AOP will have to arrange the following information for tax registration

  • Name of Association of Person or Company
  • Complete Business name and address
  • The company’s accounting period in practice
  • Business telephone number
  • Active email address
  • The principal officer of AOP or company, active mobile number
  • Principal activity of the business
  • The address of the industrial establishment or principal business place
  • Type of the company whether it is private, public limited, small company, trust, unit trust, modaraba, a society or NGO Etc
  • The date of Business Registration
  • In case of company, the Certificate of Incorporation (COI) issued by the SECP (Securities and Exchange Commission of Pakistan)
  • Registration certificate issued by RoF and the Partnership deed in case of registered firm
  • If the firm is not registered, then the Partnership Deed
  • In case of a trust, Trust deed is required
  • For society, Registration certificate of Society
  • Representative name with his CNIC or NTN
  • The names, CNIC/NTN/Passport details, and the %age of shareholding for each director and significant shareholder holding 10% or more shares in the case of a company, or for each partner in the case of an Association of Persons (AOP)
Tax Registration for Company and Association of Persons

Tax Registration of Non-resident company with permanent establishment in Pakistan

  • Name of the Company
  • Complete Business address
  • The company’s accounting period in practice
  • Business telephone number
  • Active email address
  • Principal place and address of business
  • Principal business activity
  • Date of the branch and its Registration Number issued by the SECP
  • Letter of authorization issued by the non-resident company for the designation of a principal officer or an authorized representative of the company
  • The principal officer’s or authorized representative’s name, mailing address, email, and mobile phone number
Tax Registration of Non-resident company with permanent establishment in Pakistan

Tax Registration of Non-resident company having no permanent establishment in Pakistan

  • Company Name
  • Foreign country’s complete business address
  • Name and nationality information of directors or trustees of the company
  • The company’s accounting period in practice
  • Authority letter issued by the Non-resident company for the appointment an authorized representative of the company
  • The principal officer’s or authorized representative’s name, mailing address, email, and mobile phone number
  • Business telephone number
  • Active email address
  • Principal business activity
  • Document of incorporation or tax registration obtained from the relevant regulatory authorities in the foreign country
Tax Registration of Non-resident company having no permanent establishment in Pakistan

How to login iris

A person needs to log in to IRIS system to file his income tax return in Pakistan.

For the new user who are filing their tax returns, they must be registered with iris. For the persons already having NTN or registration numbers should enroll with iris system via e-enrollment for the registered person option to get their login credentials for iris.

Once a person is properly registered and enrolled with iris system, he may complete and file the Return of Income form (containing income information for a tax year and the applicable tax) and the Wealth Statement form (details of assets & and liabilities). A person who has properly filed his fbr tax return form also called return of income form and wealth statement form will be treated as filer by the FBR system and can enjoy the benefits of being a filer.

FAQs

Upon successful registration of a person, he gets the FBR tax return login. Logging into IRIS portal the person can file his tax returns and avail the other taxation services.

FBR announced the last date for submission of tax returns 2023 as 30th September, 2023 which was later extended to 31st October,2023. FBR didn’t further extend the date.

The FBR has provided an online portal named iris for online filing of income tax returns. A lot of other taxation-related services and information can be obtained from the iris portal.

Conclusion

In essence, the filing of Tax Returns is a vital element of Pakistan’s taxation system governed by the Federal Board of Revenue. Filing returns is mandatory for individuals and businesses, it ensures revenue generation for the state with financial transparency, tax assessment, and legal compliance. The FBR’s electronic payment portal (efbr) and income tax registration portal help in streamlining the process, emphasizing the significance of accurate details for the effective filing of tax returns. Being recognized as a tax filer by FBR, comes with various benefits, making compliance and adherence to the tax system is imperative and beneficial for both taxpayers and the states.

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