Prestige LawLLP

Glossary

Pakistan tax terms, defined

Plain-English definitions of the tax words you'll hear — ATL, NTN, withholding and the rest.

Filer
A taxpayer on the FBR's Active Taxpayer List, having filed their return. Filers pay lower withholding tax.
Non-filer
Someone not on the Active Taxpayer List. Non-filers pay higher withholding tax on most transactions.
ATL (Active Taxpayer List)
The FBR's list of taxpayers who have filed on time. Being on it unlocks the lower, filer rates.
NTN (National Tax Number)
Your tax registration number with the FBR, obtained through the IRIS portal.
FBR (Federal Board of Revenue)
Pakistan's federal tax authority, which administers income and sales tax.
IRIS
The FBR's online portal for registering and filing income tax returns.
Withholding tax
Tax collected at source on a transaction (for example by an employer or bank) and adjusted against your annual liability.
Advance tax
Tax paid up front on certain transactions — such as buying property or a vehicle — and credited against your final tax.
Wealth statement
A statement of your assets and liabilities as at 30 June, filed alongside the income tax return by resident taxpayers.
AOP (Association of Persons)
A group such as a partnership taxed as one unit, on the non-salaried rate slabs.
Tax year
In Pakistan, runs 1 July to 30 June. Tax Year 2026 is the year ended 30 June 2026.
Final tax (§154A)
A flat, final tax on gross IT-export income for freelancers — 0.25% with PSEB registration, otherwise 1%.
PSEB
The Pakistan Software Export Board. Registration gives IT exporters the reduced 0.25% tax rate.
Surcharge (§182A)
A fee paid to re-join the Active Taxpayer List after filing late. The 2026-27 budget raises it sharply.

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