FILING TAX REGISTRATION

Filing tax returns is a crucial obligation for individuals and businesses in Pakistan. Complying with tax laws ensures legal protection and contributes to national development. At ApkaWakeel, we aim to make the process of filing tax returns straightforward and understandable for everyone.

Understanding Tax Obligations

In Pakistan, tax is governed by the Federal Board of Revenue (FBR). The main types of taxes include income tax, sales tax, and corporate tax. Understanding your tax obligations and meeting them timely is essential to avoid penalties and legal complications.

Who Needs to File a Tax Return?

1. Individuals:

   • Anyone earning a taxable income above the threshold set by the government.

   • Owners of immovable property exceeding specified values.

   • Individuals with utility bills exceeding a certain limit annually.

2. Businesses:

   • Companies registered under the Companies Act, 2017.

   • Partnerships and sole proprietorships with taxable income.

3. Other Entities:

   • NGOs and Trusts must also file returns to comply with regulations and maintain their tax-exempt status.

Steps to File a Tax Return

1. Register with FBR:

   • Obtain a National Tax Number (NTN) by registering with the FBR through the Iris portal.

   • Businesses must also register for sales tax if applicable.

2. Gather Required Documents:

   • For individuals: Salary slips, bank statements, proof of other income sources, and details of deductible expenses.

   • For businesses: Financial statements, invoices, bank statements, and records of all transactions.

3. Complete the Tax Return Form:

   • Log into the FBR Iris portal and select the relevant tax return form (e.g., Form 114 for individuals, Form 181 for companies).

   • Provide accurate details of your income, deductions, and tax credits.

4. Calculate Tax Liability:

   • Use the tax rates and slabs provided by the FBR to calculate your tax liability.

   • Deduct any advance tax paid or withholding tax deducted from your income.

5. Submit the Tax Return:

   • After filling out the form, review it for accuracy.

   • Submit the return electronically through the Iris portal.

6. Pay Any Due Tax:

   • If there is any outstanding tax liability, pay it using the specified payment methods (e.g., bank transfer, online payment).

7. Retain Proof of Filing:

   • Keep a copy of the filed return and payment receipts for your records.

Compliance and Deadlines

• Annual Tax Return: Typically due by September 30th for individuals and companies.

• Quarterly Statements: Businesses must also submit quarterly tax statements.

• Extensions and Penalties: Failure to file on time can result in penalties. Extensions may be requested under specific circumstances.

Benefits of Filing Tax Returns

1. Legal Compliance: Avoiding penalties and legal issues.

2. Tax Refunds: Claiming refunds for overpaid taxes.

3. Financial Documentation: Facilitating loan applications and financial planning.

4. Tax Credits and Deductions: Benefiting from available tax relief options.

How ApkaWakeel Can Help

At ApkaWakeel, our experienced taxation lawyers provide a comprehensive range of tax-related services to assist individuals and businesses:

• Tax Consultation: Expert advice on tax planning and compliance.

• Return Preparation: Assistance in gathering documents and completing tax returns.

• Audit Support: Guidance during FBR audits and resolving any discrepancies.

• Legal Representation: Representing clients in tax disputes and appeals.

Conclusion

Filing tax returns in Pakistan is a vital responsibility for individuals and businesses. With the right guidance and support, the process can be straightforward and hassle-free. At ApkaWakeel, our team of best taxation lawyers is committed to helping you meet your tax obligations efficiently and effectively. Contact us today to learn more about our tax filing services and how we can assist you.