Filer vs Non Filer in Pakistan (2025 Guide)

The terms filer and non-filer are widely used in Pakistan. The difference directly affects withholding taxes, property transactions, vehicle purchases and banking activities.

Who is a Filer?

A filer is an individual who submits income tax returns and appears in the Active Taxpayer List (ATL) maintained by FBR.

Who is a Non-Filer?

A non-filer is a person who does not submit tax returns and therefore does not appear in the ATL.

Main Difference Between Filer and Non-Filer

Filers generally pay lower withholding taxes, while non-filers often face higher tax deductions on various transactions.

Benefits of Being a Filer

• Lower withholding tax rates
• Lower vehicle registration taxes
• Lower property transaction taxes
• Improved financial credibility
• Compliance with tax regulations

Higher Costs for Non-Filers

Non-filers may face higher withholding taxes on banking transactions, property purchases, vehicle registrations and other financial activities.

How to Become a Filer

Individuals can become filers by registering on FBR IRIS and filing their annual income tax return.

Frequently Asked Questions

Is it better to be a filer?

Filers generally enjoy lower tax rates and better compliance with FBR requirements.

Can a non-filer become a filer?

Yes. By filing tax returns and fulfilling FBR requirements, a non-filer can become a filer.