SECP introduces regularization scheme for defaulting companies

The Securities and Exchange Commission of Pakistan (SECP) has introduced a regularization scheme for defaulting companies following their non-filing of tax returns for several years.

As per SECP, the regularization scheme will be available from June 15, 2024 to September 15, 2024.

Meanwhile, companies will be able to file their annual returns, documents and accounts only by paying the filing fee.

Under the fresh budget, the government proposed imposing a record Rs1.5 trillion in additional taxes to achieve an ambitious Rs13 trillion target for the new fiscal year.

After the federal government showed its intention to tighten the noose around non-filers, many Pakistanis are seeking guidance on how to file their income tax returns.

The process, though perceived as complex, can be simplified with a clear understanding of the steps involved. This guide provides a detailed overview of how individuals and businesses can register with the Federal Board of Revenue (FBR) and file their income tax returns, ensuring compliance with the country’s tax laws.

Step 1: Register with the FBR

For Individuals:

1. Obtain a National Tax Number (NTN):

   • Visit the nearest Regional Tax Office (RTO).
   • Complete the NTN application form.
   • Submit the required documents, which include your Computerised National Identity Card (CNIC), proof of residence, bank statement, and an employer certificate if you are employed.

2. Online Registration:

   • Access the FBR’s Iris portal FBR Iris.
   • Click on “Registration for Unregistered Person”.
   • Enter the necessary information and submit the form.

For Businesses:

1. Company Registration:

   • Register your company with the Securities and Exchange Commission of Pakistan (SECP).
   • Obtain a company NTN.

2. Online Registration:

   • Follow similar steps on the Iris portal as mentioned above for businesses.

Step 2: File Your Income Tax Returns

1. Login to the Iris Portal:

   • After registration, log in to the Iris portal using your credentials.

2. Income Tax Return Form:

   • Select the relevant income tax return form for the current tax year.
   • Enter the necessary information regarding your income, expenses, and any deductions.
   • Attach required documents such as salary certificates, bank statements, and proof of deductions.

3. Submit the Return:

   • Review all information for accuracy.
   • Submit the return electronically through the Iris portal.

Step 3: Verification and Acknowledgment

• Following submission, the FBR will process your return.
• You will receive an acknowledgment receipt confirming your status as a filer.

Step 4: Regular Compliance

• Ensure you file your tax returns annually before the due date to maintain your filer status.
• Keep all financial records and documents organised for accurate filing and potential audits.

Benefits of Being a Filer

• Lower withholding tax rates on various transactions, including banking, property, and vehicles.
• Eligibility for numerous tax exemptions and deductions.
• Improved credit rating and eligibility for loans.
• Compliance with legal requirements and contribution to national development.