Pakistan Tax Glossary
Clear definitions of the tax terms you’ll meet when dealing with the FBR — so you know exactly what each one means.
- FBR (Federal Board of Revenue)
- The Federal Board of Revenue (FBR) is Pakistan's federal tax authority, responsible for collecting income tax, sales tax and federal duties, and for maintaining the IRIS filing system and the Active Taxpayer List (ATL).
- ATL (Active Taxpayer List)
- The Active Taxpayer List (ATL) is FBR's public list of taxpayers who have filed their latest income tax return. Being on the ATL — being a 'filer' — means you pay lower withholding tax rates. The list is updated every Monday.
- NTN (National Tax Number)
- The National Tax Number (NTN) is your registration identifier with FBR. For individuals it is the same as the CNIC number once registered in IRIS; businesses receive a separate NTN. It is required to file returns.
- IRIS
- IRIS is FBR's online portal for registration and filing of income tax and sales tax returns in Pakistan. Taxpayers log in to IRIS to register an NTN, file returns, submit wealth statements and respond to notices.
- STRN (Sales Tax Registration Number)
- The Sales Tax Registration Number (STRN) is issued when a business registers for sales tax with FBR. It is required to charge sales tax and file monthly sales tax returns, and is separate from the income-tax NTN.
- Section 114, Income Tax Ordinance 2001
- Section 114 of the Income Tax Ordinance 2001 sets out who is required to furnish an income tax return in Pakistan — including most people with taxable income, business owners, and owners of vehicles and property above set limits.
- Income Tax Ordinance 2001
- The Income Tax Ordinance 2001 is Pakistan's primary income tax law. It defines taxable income, tax rates and slabs, filing obligations, withholding taxes and penalties, and is administered by the FBR.
- Form 114(I)
- Form 114(I) in FBR IRIS is the income tax return form used by salaried individuals in Pakistan to declare their salary income, tax deducted and assets for a tax year.
- 236C tax
- 236C is an advance withholding tax collected from the seller on the sale of immovable property in Pakistan. Non-filers pay a higher rate than filers, and the amount is adjustable against annual tax liability.
- 236K tax
- 236K is an advance withholding tax collected from the buyer on the purchase of immovable property in Pakistan. Non-filers pay a higher rate than filers, and it is adjustable against annual tax liability.
- Direct vs indirect tax
- A direct tax, such as income tax, is levied directly on a person's income or wealth. An indirect tax, such as sales tax, is levied on goods and services and collected through the price. Pakistan levies both.
- Late filer
- A late filer in Pakistan is someone who files their income tax return after the due date. Late filers can face a penalty under section 182 and, for certain transactions, higher tax rates than on-time filers.