Why become a Filer?
In Pakistan, becoming a "Filer" (Active Taxpayer) has significant benefits:
- Lower withholding tax on bank transactions.
- Lower tax on vehicle registration and property purchases.
- Legitimacy for getting bank loans and corporate contracts.
Key Concepts
1. NTN (National Tax Number)
Your unique ID with the FBR. Sole proprietors use their CNIC as their NTN.
2. STRN (Sales Tax Registration Number)
Required if you are involved in manufacturing, importing, or providing certain services. This allows you to charge Sales Tax (GST) on your invoices.
3. Withholding Tax (WHT)
As a business, you may need to deduct tax when paying vendors and deposit it to the government.
Keeping Records
The golden rule of tax compliance is documentation.
- Keep copies of all invoices issued.
- Keep copies of all expense receipts.
- Maintain a bank statement that matches your business activity.
Disclaimer: This article is for informational purposes only. Please consult a professional tax consultant for your specific business needs.