Where do non-filers pay more tax?
| Transaction | Effect of not being on the ATL |
|---|---|
| Profit on bank deposits | Higher withholding rate |
| Cash withdrawals above the daily limit | Higher rate |
| Motor vehicle registration and transfer | Higher advance tax |
| Purchase of immovable property | Much higher advance tax |
| Sale of immovable property | Higher withholding and capital gains treatment |
We do not print percentage figures because they change with each budget and sources disagree. Ask for the current rate from FBR or your bank before you transact.
Advance tax on vehicles in Pakistan
Advance tax is collected when a vehicle is registered or transferred and depends on engine size and on whether the buyer is on the ATL. Being a filer normally lowers it. Check the current schedule with the excise office before purchase.
Capital gain tax on property in Pakistan
Tax on a property sale depends on the holding period, the property type and the seller's filer status. Buyers also pay advance tax at registration, again at different rates for filers and non-filers. The rules changed in recent Finance Acts, so property deals are where professional advice is most valuable. A property tax consultant in Pakistan can calculate both sides before you sign.
How do you stop paying non-filer rates?
Register and file: how to become a tax filer in Pakistan. Confirm the result: Active Taxpayer List (ATL) check by CNIC. Do this before the transaction, not after, because withholding is deducted at the time of the transaction.
Property is where the gap is widest. The worked examples in property tax and capital gains tax in Pakistan show the filer and non-filer cost on the same sale.