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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