Islamabad: The Federal Board of Revenue (FBR) has amended the Income Tax Rules to allow individuals registered as active taxpayers with the revenue authorities of Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan (GB) to be included in Pakistan’s Active Taxpayer List (ATL).
According to a notification issued on Thursday, the amendment has been made under Rule 81B of the Income Tax Rules, 2002, in exercise of powers granted under the Income Tax Ordinance, 2001. Under the revised rules, individuals appearing on the Active Taxpayer List of the AJK Central Board of Revenue or the Gilgit-Baltistan Council Board of Revenue will be eligible for inclusion in FBR’s ATL, subject to specific conditions.
The notification states that the individual’s temporary or permanent address must be in AJK or GB, with the same address also recorded in Pakistan. Inclusion in the ATL will require verification by the Commissioner Inland Revenue having jurisdiction based on the individual’s temporary address mentioned on their CNIC.
The commissioner will verify through the IRIS system that the individual has no employment or business activity in Pakistan. This verification will be carried out following an inquiry and an undertaking submitted by the applicant. At the same time, the relevant tax authority in AJK or GB will confirm, through IRIS, the existence of employment or sole business activity within their respective territory.
The FBR clarified that if, at any stage, it is determined that an individual included under these provisions is liable to file an income tax return under Pakistan’s tax laws and fails to comply with a notice, their name will be removed from the Active Taxpayer List.
The move is aimed at aligning tax records across jurisdictions while ensuring compliance with Pakistan’s income tax framework.
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