Pakistan’s taxpayers have been advised to file their Tax Year 2026 income tax returns by September 30, 2026, to avoid a Rs. 25,000 surcharge and maintain their Active Taxpayer List (ATL) status.

The Tax Year 2026 return covers income earned between July 1, 2025, and June 30, 2026. Returns submitted by the due date will not attract the new ATL surcharge.

Currently, the Federal Board of Revenue (FBR) determines ATL eligibility based on Tax Year 2025 returns. However, as was the case last year, the ATL is expected to switch to Tax Year 2026 filings from July 1, 2026, meaning taxpayers who have not filed their latest returns could lose their active status.

The Finance Bill approved by the National Assembly also provides relief for some late filers. Taxpayers who miss the deadline may still avoid the Rs. 25,000 surcharge by filing their return and submitting an undertaking to the Commissioner that they will not buy, acquire, or obtain any ownership or beneficial interest in immovable property for six months from the date of the undertaking.

Those who fail to file on time and do not qualify for this relief risk losing ATL status and paying higher withholding taxes on a wide range of financial transactions.