For Overseas Pakistanis, or non-resident Pakistanis, defined as individuals who live outside Pakistan for more than 183 days in a year, staying compliant with Pakistan’s tax regulations might seem daunting. Yet becoming a filer, an active taxpayer recognized by the Federal Board of Revenue (FBR), is fully achievable online, even from abroad. This article guides you through the process, highlights critical prerequisites, outlines how to file returns (including NIL returns for people with income streams outside Pakistan), and demonstrates the practical advantages of being an Active Taxpayer under Pakistan’s FBR system.
There are two steps to become a filer as an overseas Pakistani with FBR. First of all, you need to register yourself at the FBR IRIS system, and the second step is filing your tax returns for the current financial year.
1. What is a “Filer” and Why Does It Matter
In Pakistan’s tax system:
- A Filer is someone who has registered with the FBR (via a National Tax Number, or NTN) and has filed their income tax return by the deadline. They are included in the Active Taxpayer List (ATL).
- Non-filers are individuals who have either not registered with the FBR or failed to submit their returns on time. They are not on the ATL and are subject to significantly higher taxes, withholding obligations, and restrictions.
Being on the ATL signals compliance, and that status carries numerous financial and legal advantages.
2. The Prerequisites, Pakistani Mobile Number & Email
To register on the FBR IRIS portal (iris.fbr.gov.pk), one must receive OTP (one-time passwords) on both:
- A Pakistani mobile number, and
- An email address of your choice.
If you are abroad and possess a Pakistani SIM card, simply insert it into your phone to receive the OTP via roaming. Alternatively, request a trusted relative in Pakistan to insert it into their phone and share the code with you.
3. Step‑by‑Step: How to Register on the IRIS Portal While Abroad
- Access the IRIS Portal, Pakistan’s official online tax portal.
- Select “New Registration”, the option for new users (individuals), and proceed with your CNIC, mobile number, and email.
- Enter your email address and residence in Pakistan. OTPs will be sent to your Pakistani mobile number and email address. Follow the OTP prompts precisely.
- Fill in your personal details and set up your FBR account. Upon completion, you will obtain your NTN and will be registered with the FBR.
4. Filing Your Return as an Overseas Pakistani
Once you have your FBR account and NTN:
- If your income from Pakistan in the relevant tax year is minimal or zero, you can submit a NIL return (i.e., declare no Pakistan-source income). For this, you can follow this guide with step-by-step details.
After filing (even NIL), your name will be included on the Active Taxpayer List, confirming your “Filer” status.
5. Confirming Your Filer Status
You can verify your status in two main ways:
- Online via FBR: Log in to IRIS or visit the ATL section of FBR’s website and search by your CNIC or NTN.
- By SMS: You can send
ATL <space> CNIC (13‑digits)to 9966 and receive confirmation whether you’re an Active Filer.
6. Benefits of Being an Active Filer vs. Non‑Filer
Here’s a clear comparison to show the real value:
a) Withholding Taxes & Financial Transactions
| Activity | Filer | Non‑Filer |
|---|---|---|
| Capital Investment Return Tax | ~15% | ~30% |
| Prize Bonds | 15% | 30% |
| Property Purchase Tax | 1% | 2% |
| Vehicle Registration | ~50% concession | Full rate (double) |
| Import Tax (comm/raw mat.) | ~5.5–6% | ~11–12% |
| Financial Services Access | Easier, lower holding tax | Restricted, higher tax |
| Loans / Tenders / Refunds | Accessible, refundable | Limited, no refunds |
- Filers enjoy lower withholding taxes, easier access to loans, smoother banking, and eligibility for tax refunds.
- Non-filers face higher rates, penalties, and in some cases, government restrictions.
Also, check out: How Overseas Pakistanis can unblock devices during their stay in Pakistan without paying PTA Tax.
7. Final Thoughts for Overseas Pakistanis
Becoming a Filer from abroad is entirely possible, provided you have access to:
- A Pakistani mobile number (via physical SIM or trusted relative), and
- An email address for portal communication.
Once registered on IRIS, you can submit your return (even a nil return) and secure your inclusion in the ATL. This not only fulfills your legal obligations but also unlocks a range of practical benefits, reduced taxes, financial flexibility, and greater credibility in Pakistan.
Conclusion
For Overseas Pakistanis, aligning with Pakistan’s tax requirements through FBR’s IRIS portal as a filer is both responsible and rewarding. Despite being geographically distant, with the right setup, you can ensure clarity, fiscal advantages, and fulfill your national duty, all while safeguarding your financial interests, both for today and for future engagements with Pakistan.
