The main difference between a filer and non-filer is that a filer’s name is on the Active Taxpayer List (ATL) and that of a non-filer is not. The major distinction between filer and non-filer is that the name of the filer is on the Active Taxpayer List (ATL) and non-filer’s name is not. In many transactions, an active filer will have lower withholding and advance tax rates and a person who is not on the ATL may have higher tax rates.

Filer vs Non-Filer Pakistan

It is noteworthy that, if a person registers as a non-taxing non-filer, this does not necessarily mean that he or she is an active filer. FBR says the concepts of registration and inclusion in ATL are two different things. A person could be in Iris and not be on the current ATL as the ATL conditions may not be met or the return may not have been completed.

Filer vs Non-Filer in Pakistan – What Is the Difference?

The main linkage of filer and non-filer difference is with the person’s position on the Active Taxpayer List (ATL) of the FBR and the tax rates that apply to specific transactions.

Typically, the term “filer” is used to refer to a taxpayer whose name appears on the ATL. A non-filer would normally be someone whose name is not on the ATL. FBR’s existing system also allows for late filers to be added to the ATL after paying a surcharge, and certain transactions can also have a separate surcharge rate.

That is why it is not appropriate to give a single percentage as an answer to the filer or non-filer question. The applicable rate is determined by the part of Income Tax Ordinance and the transaction.

Filer and Non-Filer Tax Rates in Pakistan 2026

The tax rate for all taxpayers who file and those who do not file is NOT the same. Typically, the most significant differences are in the withholding and advance tax features.

FBR has released its official Tax Year 2026 withholding-tax rate card, which identifies several transactions with different rates of withholding tax, both ATL and non-ATL. There’s also an additional late filer rate in some instances.

Filer Tax Rates

The applicable rate is generally the lower (ATL rate) rate set by the State for the applicable transaction for an ATL taxpayer. The exact rate varies according to the type of payment/transaction.

For instance, tax on profit or yield paid by a banking company or financial institution on an account or deposit is at the rate of 20% under the Tax Year 2026 rate card.

Non-Filer Tax Rates

Such a person who is not named on the ATL may see the rate applied to their transactions significantly raised when involved in the transactions subject to the withholding provisions.

For instance, FBR’s Tax Year 26 rate card provides the tax rate on bank account/deposit profit as **40%** for persons other than ATL as opposed to 20% for persons who are ATL.

It is incorrect to say that simply the non-filer pays “double tax” these examples illustrate. The percentage will be based on the provision involved.

Late Filer vs Filer vs Non-Filer

A late filer should not receive the same treatment as an on-time ATL filer nor as a non-filer, just because they are a late filer.

Even if a person files a return after the prescribed due date, he can still be included in the ATL, once he has paid the applicable ATL surcharge, FBR confirms.

Thus, when a late return is involved, do not presume the normal rate of return is applicable. Look into the particular section and present FBR rate.

Bank Profit Withholding Tax for Filer vs Non-Filer

In Pakistan, one of the major questions that is important is Bank-profit taxation which is a problem of Filer vs non-filer.

The withholding-tax rate under Tax Year 2026 FBR withholding-tax rate card, on account or deposit paid by a banking company or financial institution, on yield or profit paid by it, is:

The Finance Act 2025 changes, which involve a 100% increase for non-ATL, are responsible for the 40% non-ATL rate, says FBR.

Filer Tax on Bank Profit

If a person’s name is on the ATL, then he or she will have a 20% withholding rate applied to the profits from the bank account or deposit in Tax Year 2026 (and specific to the nature of the profit and any exceptions).

Non-Filer Tax on Bank Profit

If you don’t live on the ATL, you will pay only 40% of the Tax Year 2026 rate on your bank account or deposit profit.

The income tax on bank deposits is calculated on the profits generated. The income tax on bank deposits is based on profit.

Normally the bank will withhold tax as prescribed in section 151 when the profit concerned is credited to the bank or paid out to the employee. This also represents an income tax deduction, and is not a bank fee.

Profit on Bank Deposits Withholding Tax

If a bank earns a profit of Rs. 100,000 in a deposit, what is that profit considered as:

Example of Bank Profit Tax

Suppose a bank pays Rs. 100,000 in taxable profit on a deposit:

• ATL filer:
  Rs. 100,000 × 20% = Rs. 20,000 tax
• Non-ATL taxpayer:
  Rs. 100,000 × 40% = Rs. 40,000 tax

The difference in withholding would therefore be Rs. 20,000 on this example.

Depending on the type of investment or profit, the applicable section may vary, so always check with a calculator and/or publish a rate before you begin calculating.

Benefits of Being a Filer in Pakistan

To be on the Active Taxpayer List offers a number of tax advantages. The official guidance for the tax authorities in the field of withholding tax (ATL) by FBR states that the tax benefits include reduction in tax deductions by banks on profits, and cash withdrawals, reduction of withholding tax on motor-vehicle registration and transfer, reduction of property tax, reduction of tax on capital gains on securities transactions, applicable reduction in dividend tax, reduction in withholding tax on winnings from prizes, and recovery of withholding tax paid.

Lower Withholding Tax in Applicable Areas

Reduced withholding tax rates (or advance tax rates) for ATL taxpayers are applicable to many transactions which would not be so for non-ATL taxpayers. It is a transaction-specific, instead of a “one-size-fits-all” filer discount.

Bank-Profit Tax Benefits

Filer status is especially significant for those who gain large amounts of bank-profit: For Tax Year 2026, bank-account or deposit-profit under section 151 will be taxed at a 20% rate for ATL persons and a 40% rate for non-ATL persons.

Property Tax Benefits

Subject to the property value and legal requirements, the lower advance-tax rates can be offered for property sale or purchase on the basis of sections 236K and 236C of the tax act.

Securities and Capital Gains Benefits

One of the benefits of being on the ATL is being able to save on withholding tax on the capital gains from the sale of securities, FBR says.

Dividend Benefits

There is also a withholding benefit on the lower dividend rate (lower rate as per FBR) and this has been included in the AT benefits.

Prize-Bond Benefits

ATL taxpayers also get a lower rate of withholding on applicable prize-bond winnings than do non-ATL persons.

Claiming Overpaid Withholding Tax

If a taxpayer appears on the ATL, FBR’s guidance indicates that the tax which is withheld would be eligible for refund, if refund is applicable and tax would be refunded as applicable to the withheld tax. An income-tax refund is available after having filed an income-tax return, says FBR, separately.

Disadvantages of Being a Non-Filer

The biggest drawback of a NON-FILER / NON ATL taxpayer is that he or she will be subjected to higher withholding / advance tax rates in transactions where the FBR treats the transaction differently depending on the ATL status.

These are differences that can impact on components like:

FBR clearly points out these in its list of advantages of ATL status.

But do not refer to a non-filer tax as “double tax” in all instances. Rates may vary and some can be double, others may be 100ths of a percentage. For instance, Tax Year 2026 bank-profit withholding is 20% for taxpayers in Tax Lane 1 (ATL) and 40% for taxpayers in Tax Lane 2 (non-ATL) and property rates under sections 236C and 236K are on separate schedules.

Filer vs Late Filer vs Non-Filer

The three terms need to be read independently.

An Active Taxpayer List filer is someone that has his or her name listed on the current Active Taxpayer List.

A late filer is someone who has filed the return(s) after the regular filing date. FBR’s rules give a right to late filers to be added to the ATL after paying the appropriate surcharge. FBR currently has the following surcharge for individuals, which would be applicable to the ATL guidance, and a higher surcharge for those who are in the AOPs or companies.

How to Check Your Filer Status

The key concept is that a late filing can be classified as an ATL filing and certain tax provisions may have different late filing rates. One such example is property transactions carried out under the provisions of sections 236C and 236K.

To determine if your file is considered the “filer” status, follow these steps:

The best method to find out is to consult the FBR Active Taxpayer List and not the previous year’s status or an unofficial website, or an old screen shot.

There are currently a number of methods available at FBR:

Use FBR official verification facility of Active Taxpayer on Online.

To verify a CNIC for an individual, send the number of the CNIC (13-digit number) to 9966. To send a message to an AOP or company, send the message as: ATL [space] 7-digit NTN to 9966.

FBR has the Active Taxpayer List ( ATL) available for download. The latest update of FBR’s page is for the income-tax ATL which was updated on July 28, 2026.

To connect this section to your own how to check filer status / ATL verification article, simply link this section to your own **[How to Check Filer Status / ATL Verification]** article.

How to Become a Filer in Pakistan

In general, a filer becomes a filer by registering for income-tax with the tax authorities and filing the relevant income-tax return, following which he/she is entered in the corresponding ATL out of which his/her income-tax becomes payable.

According to FBR, people can register on Iris (online system) for filing income-tax returns online via the Iris Portal. In the case of first time filers, FBR’s guidance also says that they need to register before filing a return.

To get in-depth information on documents, login procedures and return filing of documents, visit this section with your detailed how to become a filer in Pakistan online guide.

Is There a Fee to Become a Filer in Pakistan?

There’s a significant distinction between professional service fees and Government charges.

FBR Registration

FBR’s income-tax registration involves issuance of an NTN or registration number to the taxpayer and providing access to Iris. Don’t be misled by the term “registration” and think you’ve paid a private tax consultant!

Tax-Return Preparation or Filing Fees

A preparer of a tax return, such as a tax consultant, accountant or tax lawyer, could require a fee known as a tax professional fee. This is a service charge which is not necessarily an FBR government fee.

ATL Surcharge for Late Inclusion

If a person files late and desires inclusion in the ATL he will have to pay the appropriate ATL surcharge. FBR currently has the following guidance for ATL: 100 per person for 1000. Rates are Rs. 100 for each person for 1000. 10,000 for an AOP, and Rs. 20,000 for a company.

Therefore, there should not be one single conclusive price for the fees for filing with the name “filer fees in Pakistan 2026”. The answer varies based on whether the individual is inquiring about registering with the government, late ATL inclusion or professional tax filing services.

First-Time Filer and Previous Years

The filing of a prior year should not be assumed by a person when he or she registers as a new filer.

The tax filing requirement will depend on the tax history, tax filing status, taxable income, tax law, and taxable years the person was required to file a return. FBR has maintained its stance that if a person is filing income-tax return for the first time, he/she will have to register before filing them via Iris.

In instances where a return is being filed for missed returns, past tax years, wealth statements, late filing and/or inclusion in ATL, the taxpayer should ascertain what years are legally required and should then not file any unnecessary returns.

Filer vs Non-Filer for Bank Accounts

Does the filer or the non-filer have the bank account number? Is the bank account number from the filer or non-filer?

A key area in which filers’ status is apparent is in bank-related transactions.

For Tax Year 2026, the official rate card of FBR will be applicable with an interest rate of 20% ATL and 40% non-ATL paid on an account or deposit by a banking company or financial institution under section 151.

Less tax deductions on cash withdrawals is also one of the benefits FBR recognizes for the ATL. The Tax Year 2026 rate card has a “0.80% advance tax on cash withdrawal by a person whose name is not on the ATL” as per section 231AB.

So, in some bank transactions, a taxpayer’s ATL status may directly impact the financial aspect of a transaction.

Filer vs Non-Filer for Property

Filer status also can have a big impact on advance tax in the case of property.

The Tax Year 2026 rates are:

The withholding rate should not be considered as the tax liability on a property transaction as the property tax may have other components such as provisions and capital gains.

Filer vs Non-Filer for Vehicle Registration

ATL status may also impact on registration & transfer of motor-vehicles. In case of reduced withholding tax, FBR will explicitly mention it at the registration and transfer of motor vehicles as an ATL benefit.

The value will be determined based on the type of vehicle, engine size or any other statutory requirements and therefore before determining the liability, the relevant section and current FBR rate card should be consulted.

Filer vs Non-Filer for Cash Withdrawal

Another instance where non-ATL can have an immediate withholding-tax impact is cash withdrawal.

Section 231AB of FBR’s Tax Year 26 rate card states that an individual who does not have his name on the ATL will be liable for advance tax of 0.80% on cash withdrawal.

That is why FBR has reduced tax deductions on cash withdrawals as one of the advantages of being a part of the ATL.

Filer vs Non-Filer for Dividends and Securities

Other than withholding taxes on dividends, securities and capital gains, filer status may also impact withholding taxes.

According to FBR, ATL taxpayers get better tax treatment in the case of sale of securities, and lower tax in applicable case of dividend.

Depending on type of dividend, security, taxpayer and applicable legislation the actual rate will vary. Thus, there should not be a general “filer dividend rate” without specifying the particular transaction.

Common Filer and Non-Filer Mistakes

Assuming NTN Automatically Means Filer Status

Does not imply that someone is on the ATL if they are registered as NTN or FBR.

FBR does not equate registration with being included in ATL. There are situations in which an individual could be e-enrolled and be assigned a registration number, but still have to file the proper return and meet the ATL criteria.

Confusing FBR Registration With ATL Status

Those who register for FBR with the purpose of filing returns are not automatically considered to be in ATL status. FBR registration, return filing and ATL status are different concepts. Taxpayers need to check the status of ATL – registration does not mean they are a taxpayer.

Using Outdated Tax Rates

Withholding tax rates may be amended in any Finance Acts each year and other changes. Before publishing and/or applying a rate, check the current FBR rate card and the Income Tax Ordinance. For the time being, FBR considers its tax year 2026 rate card to be the current rate card for the tax year 2026.

Ignoring Late-Filer Rules

The late filer may still be added to the ATL if he or she pays the surcharge, but there is a potential surcharge for a specific transaction, known as a late-filer rate. A good example of this is property in sections 236C and 236K.

Checking an Old ATL Status

The AT level can be upgraded. The current FBR verification system or latest ATL should be verified and not previous month/previous year status. The current ATL is for 28 July 2026. FBR will update their downloadable ATL as the time of its release gets closer.

Confusing Consultant Fees With Government Charges

A fee charged by a tax consultant, for preparing or filing a tax return, is a professional service fee. It shouldn’t be referred to as the government’s “filer fee.” This does not include government charges, e.g. an appropriate ATL surcharge for late inclusion.

Frequently Asked Questions (FAQs)

What is a filer in Pakistan?

The filer is normally the name of a taxpayer whose name is included in the list of active taxpayers of Federal Board of Revenue known as Federal Board of Revenue’s Active Taxpayer List (ATL). The reduced withholding and advance tax rate on the ATL could be beneficial in various transactions.

What is a non-filer in Pakistan?

Generally, if a person’s name is not found on the current Active Taxpayer List, he is a non-filer. If the law prescribes various withholding and advance tax rates for non-ATL taxpayers, then such a person could be subject to higher withholding or advance tax rates.

What is the difference between filer and non-filer?

There are two main differences: ATL status and the tax treatment of specific transactions. The rate of withholding/advance tax generally will be lower for a filer/ATL taxpayer and higher for a non-ATL taxpayer.

What are filer and non-filer tax rates in Pakistan 2026?

All transactions do not have a uniform rate. The difference(s) for Tax Year 2026 apply to the section. For instance, bank-account or deposit profit is 20% for taxpayers in the AT level and 40% for those not in the AT level and property transactions have separate rates for filers, late filers and non-filers.

How can I become a filer in Pakistan?

An individual has to register with FBR via the basis of Iris Portal, submit the necessary income-tax return and fulfil the conditions for being placed on the ATL. FBR said that people can register online via Iris and for first time filers, a prerequisite to filing is to register before filing of the return.

How can I check my filer status?

To verify their Active Taxpayer status, please access it online through the FBR website, SMS or download the ATL. The SMS method is for an individual to send ATLS (space) CNIC to 9966.

What are the benefits of being a filer?

Some benefits covered by FBR are lower tax deductions by banks on profit & cash, lower withholding on motor vehicles, lower property tax, lower withholding tax on capital gains on securities, lower withholding tax on dividends (in applicable cases), lower withholding tax on prize money and overpaid withholding tax can be claimed back.

What is the tax on bank profit for filers and non-filers?

In Tax Year 2026, FBR rate imposed on the profit derived from the qualifying banks account or deposit from section 151 is 20% for ATL taxpayer and 40% for non-ATL taxpayer.

Do first-time filers need to file previous years?

Not automatically. The tax years required are dependent on the taxpayer’s situation and the legal tax filing requirements for the tax years. An individual who has just begun filing should decide on the returns they need to file, don’t assume that all returns from prior years have to be filed.

Is there a fee to become a filer in Pakistan?

There is no fixed and standard ‘filer fee’! FBR registration does not come under professional tax consultant fees and if someone files late, he/she has to pay an **ATL surcharge** to be listed. FBR’s new guidance has the Surcharge on the Individual ATL at Rs. 25,000.

Conclusion

The difference between filer and non-filer in Pakistan is primarily related to the difference in the rates applicable to specific transactions and that of the status of Active Taxpayer List. The withholding tax and I income tax may be lowered on ATL (allowance tax) in the following categories: bank profits, property, cash withdrawals, securities, dividends and prize winnings.

While it is assumed that every non-filer is paying “double tax,” and that every late filer is getting the standard filer rate, it should not be assumed that is true. The law can distinguish the treatment of one group of taxpayers from another group of taxpayers (ATL filers, late filers and non-ATL taxpayers), for transactions like property.

Use a published rate at your own discretion, and ensure that the rate is checked on the relevant FBR rate card prior to use, and the current Income Tax Ordinance for any tax calculation to be made in 2026. The rate card is offered for facilitation by FBR itself and in case there is any contradiction or error, the underlying law will supersede the rate card, FBR itself states.