Should I become a filer and join the Active Taxpayers List even though I have no income in Pakistan?

Relatives, estate agents and bank staff often tell overseas Pakistanis to “become a filer”. The Income Tax Ordinance, 2001 does not answer whether you should. It does set out what changes if you are off the active taxpayers’ list, which reliefs non-residents already have, and when getting registered creates a duty to keep filing. This page sets those out as they stand in the Ordinance amended to 30 June 2026, for tax year 2027 (1 July 2026 to 30 June 2027).

What does being off the active taxpayers’ list change?

Section 100BA says the collection or deduction of advance tax, and the computation of income and tax, for a person not appearing on the active taxpayers’ list “shall be determined in accordance with the rules in the Tenth Schedule”. Rule 1 of that Schedule increases the rate of tax to be deducted or collected by one hundred percent, with its own tables for some sections. For a property seller, the section 236C rate is 11.5% instead of the 2.75% in Division X of Part IV. For rent withheld by a tenant at the Division V rates of Part III, the increase doubles the deduction.

Rule 2 of the Tenth Schedule gives a separate route: where the withholding agent is satisfied that the person was not required to file a return under section 114, the agent notifies the Commissioner before collecting, and the Commissioner decides within thirty days. If no order is passed in that time, the contention is treated as accepted.

Which non-resident exemptions already apply?

Several clauses of Part IV of the Second Schedule switch off section 100BA and rule 1 for particular overseas transactions, whether or not you are on the list:

Clause	What it says, in short
(111A)	Section 100BA and rule 1 do not apply to payment of dividend to non-resident persons
(111AB)	Section 100BA and rule 1 do not apply to FCVA, FCBVA, NRVA or NRBVA accounts with authorised banks
(111AC)	Section 100BA and rule 1 do not apply to a non-resident individual holding a POC or NICOP on property sale and purchase transactions on which tax is collectible, including section 236C
(114A)	The return duty for final-tax income, and the registration requirement, do not apply to a person maintaining an FCVA, FCBVA, NRVA or NRBVA, unless the person has other Pakistan-source taxable income beyond the listed items

The items listed in clause (114A) are profit on those accounts, profit on Government securities bought from them, capital gains on property bought from FCVA or NRVA proceeds, and capital gains and dividends on listed shares and mutual funds bought from those accounts.

These clauses do not cover everything. A company tenant’s rent withholding, for example, is not in any of them.

Does getting an NTN create a filing duty?

Yes. Section 114(1)(b) lists persons who must file a return even when they are not otherwise covered, and sub-clause (vii) is a person who “has obtained National Tax Number”. Clause (114A) disapplies the final-tax filing clause and the registration requirement, not sub-clause (vii). On the text, a person who registers to get on the list takes on a return duty for each year that follows.

Other triggers in section 114(1)(b) include owning immovable property above set sizes and owning a motor vehicle above 1000cc. Section 115(3)(d) says a non-resident person is not required to file solely by reason of the property triggers. That relief is limited to “ownership of immovable property”, so it does not reach the vehicle trigger.

A return also carries its own paperwork. Section 114(2)(e) says a return shall be accompanied with a wealth statement.

Worked example (illustrative figures)

Sana lives in Riyadh, holds a NICOP and has an NRVA. In tax year 2027 she sells a plot in Multan that she bought from her NRVA, for Rs. 12,000,000. She also owns a flat in Karachi let to a company for Rs. 150,000 a month, Rs. 1,800,000 for the year.

Property sale.

1. Tax collected under section 236C: Rs. 12,000,000 x 2.75% = Rs. 330,000.
2. Because of clause (111AC), this is the same whether or not she is on the list. Without that clause, the Tenth Schedule rate would give Rs. 12,000,000 x 11.5% = Rs. 1,380,000.

Rent.

1. Division V for an individual landlord: Rs. 15,000 + 10% x (Rs. 1,800,000 - Rs. 600,000) = Rs. 15,000 + Rs. 120,000 = Rs. 135,000.
2. If she is not on the list, rule 1 doubles it: Rs. 270,000.
3. No Second Schedule clause in the table above covers rent.

The rent is also Pakistan-source income beyond the items listed in clause (114A), so that clause’s filing relief would not apply to her for that year.

Common mistakes

• Thinking an NTN is a one-off. Section 114(1)(b)(vii) ties a continuing filing duty to having obtained one.
• Assuming every overseas transaction carries non-filer rates. Clauses (111A), (111AB) and (111AC) already remove them for dividends, the listed accounts and POC or NICOP property transactions.
• Assuming the clauses cover CNIC-only holders. Clause (111AC) names POC and NICOP holders.
• Assuming non-residents never need to file. Taxable Pakistani income, a vehicle above 1000cc, or an NTN can each bring a filing duty.

What to check in the official text

Read section 100BA, section 114(1)(b) and (2), section 115(3), rules 1 and 2 of the Tenth Schedule, and clauses (111A), (111AB), (111AC) and (114A) of Part IV of the Second Schedule. How a person is placed on or removed from the active taxpayers’ list is regulated by rules made by the Board, and the IRIS registration steps are outside this corpus.