Many taxpayers in Pakistan wonder: “Am I required to pay wealth tax?” Let’s clarify.
Though there’s no direct “wealth tax” in Pakistan currently, the Wealth Statement (Form 116) is mandatory for taxpayers to declare their assets and justify their income — especially if you wish to appear on the Active Taxpayer List (ATL).
What Is Wealth Statement?
A wealth statement is a yearly declaration of:
Movable assets (cash, vehicles, stocks, gold, etc.)
Immovable assets (property, land)
Liabilities (loans)
Net assets growth vs. income
FBR uses this to compare your income and asset growth — and issues notices if there’s a mismatch.
Who Must Submit Wealth Statement?
Anyone earning taxable income
Business owners & salaried persons filing tax
Individuals buying/selling property
Persons receiving FBR notices under Section 116(1)
👉 File tax & stay ATL listed
Is There a Tax on Wealth?
There’s no separate “wealth tax”, but:
Unjustified increase in assets may result in FBR audits
Undeclared wealth may be taxed as unexplained income
How FilerNow Helps You
Asset-debt matching
Filing Form 116 accurately
Avoiding tax mismatch penalties
Expert support for ATL & refunds
FAQs Wealth Tax & Wealth Statement in Pakistan
1. What is the difference between wealth tax and wealth statement?
In Pakistan, wealth tax as a separate tax doesn’t exist, but wealth statement is mandatory to declare your total assets. It helps FBR verify your income vs. asset growth.
👉 File your Wealth Statement with FilerNow
2. Do I have to declare property or gold in my tax return?
Yes. All movable (gold, cash, investments) and immovable (plots, homes, land) assets must be declared in your wealth statement.
👉 Declare your assets properly
3. Is wealth statement mandatory for salaried individuals?
If your salary is taxable and you want to stay in ATL, then yes — Form 116 (wealth statement) must be submitted with your tax return.
4. What happens if I don’t file a wealth statement?
You can get a notice under Section 116, lose ATL status, or face audit penalties from FBR.
5. Can FilerNow help me prepare my wealth statement?
Absolutely. FilerNow’s experts prepare and file accurate wealth statements, match asset growth with income, and protect you from tax penalties.