Benefits of Becoming an Active Tax Filer

Filing tax returns and becoming an active tax filer is of paramount importance and is the responsibility of each and every citizen living in Pakistan. A citizen who has a certain amount of annual income from business or personal salary is liable to become a tax filer. There are various benefits if you are an active tax filer. Many people are unaware of the benefits yielded by filing tax returns. This is the reason why they are reluctant to become a tax filer. Below are the benefits of filing tax return actively:

• Saving in Withholding Tax (WHT):

Filers can save on your bank transactions which are cash withdrawals and money transfers etc. in comparison to non-filers. There are no taxes for tax filers on bank transactions which are cross cheque, pay order, demand draft etc.  If you have a business lesser amount of WHT taxes will be subtracted on your invoices. Filers, furthermore, save taxes on dividends and prizes.

• Purchase of Property:

Filers can save taxes when buying, selling or transferring property.

• Vehicle Purchase:

Filers can save on registration and transfer of vehicles. Filers can also save on vehicle token tax in comparison to non-filers.

• Government Tenders:

Filers get preferences in government tenders and saving in taxes. There is 7.5 percent tax for filers and 15 percent tax for non-filers.

• Lesser Taxes on Imports:

Tax on imports of raw material for filers is 5.5% while for non-filers it is 8%. Additionally, for imports of commercial material, tax for filers is 6 percent and 9 percent for non-filers.

• Other Benefits:

Profit on bonds, certificates for a filer is more than that of a non-filer. The tax deducted at source by banks will be lesser if you are a tax filer otherwise it will accumulate. Accurate income assessment is done while visa and immigration processing if you are a filer and many more.

There are several benefits of being an active tax filer and its disadvantages amount to zero. Let ZAF Consultants guide you. Become an active tax filer today and enjoy all the benefits!