The Federal Board of Revenue (FBR) has introduced a new category of taxpayers, the Active (Late Filer), under the Income Tax Ordinance 2001, as amended by the Finance Act 2024. This categorization is designed to incentivize timely tax filing and to streamline the tax administration process.

Late Filer and Active are same. However, Late filers are subject to higher Property Tax Rates.

Who is a Late Filer?

A taxpayer is a Late Filer if failed to file one of the last three tax returns by the due date or extended deadline.

Specifically, as of November 1, 2024, a taxpayer will be considered a Late Filer if:

1. They file their 2023-24 tax return after October 31, 2024.
2. They have paid the Active Taxpayer List, ATL Surcharge for 2024.

How to become Active from Late Filer?

To regain the status of an Active Filer, a taxpayer must file their income tax returns for three consecutive tax years on time. Specifically, a Late Filer must:

1. File the 2025 tax return before September 30, 2025.
2. File the 2026 tax return before September 30, 2026.
3. File the 2027 tax return before September 30, 2027.

Late Filers cannot become Active again before July 1, 2027.

Recent Updates about Late Filer:

Late Filer is one among the most confusing addition in Income Tax Ordinance via Finance Act 2024. Howeve, to make it understand here are some important updates about Late Filer;

• Late Filers became Active, if 2024 tax-returns are filed before October 31, 2024.
• Changes made in Active Taxpayer List Update via S.R.O. 1638(l)12024 on October 18, 2024.
• It was unjustice to apply the Late Filer on 2023 tax return, because the Late Filer was introduced in July 2024.
• From August 2024, Active (Late Filers) were those who filed 2023 tax-returns after October 31, 2023.
• FBR started marking taxpayers as Active (Late Filer) in first week of August, 2024
• Pakistan Tightens Tax Regime: Late Filer Category Introduced on July 1, 2024.

These changes highlight the government’s increasing efforts to tighten tax regulations and ensure timely compliance.

It’s crucial for taxpayers to be aware of these changes and take necessary steps to avoid being classified as Late Filers.