FBR has made it necessary for all salaried employees (government and private) having taxable income to file their tax returns. If you are liable to pay income tax, property tax or sales tax in Pakistan then you must have a National Tax Number (NTN). It is preferred if you become a tax filer as it does have its benefits because if you are a non-filer, then you have to pay an increased tax rate on banking transactions, property transactions and vehicle token.
The National Tax Number (NTN) is required for filing taxes in Pakistan.
NTN stands for National Tax Number which can be obtained by the FBR (Federal Board of Revenue) department. National Tax Number can be used for Income Tax, Sales Tax, and Federal Excise purposes and it can also be used for Import and Export of goods.
If you are a salaried person then your employer can generate National Tax Number (NTN) from Federal Board of Revenue (FBR) for you.
You can get NTN registration free of charge there are no charges for registration.
Eligibility: There is an income bracket defined by FBR and if you fall in that, then you have to file for an NTN number whether you a salaried person or a business man.
There are two ways to get your NTN Number, either online or you can visit FBR office for the completion of registration. You can get the NTN using the offline system. However, you have to hire a Tax consultant to get NTN from FBR. You must have the documents for obtaining NTN from FBR. So for many, online process is much more convenient.
Requirements before Registration
Documentations needed for a salaried person:
- Copy of valid CNIC
- Copy of recently paid electricity bill of house (not older than 3 months)
- Latest payslip.
- Contact Numbers (Mobile & Landline) and valid Email address
- National Tax Number (NTN) of Employer, Office Address, and valid Email address
Documentations needed for a Businessman: - Copy of valid CNIC.
- Copy of recently paid electricity bill of business location.
- Blank Business Letter Head.
- Property papers or Rental Agreement(Rental Agreement printed on Rs. 200/- stamp paper).
- Contact Numbers (Mobile & Landline), and valid Email address.
- Nature of Business.
Now let’s go through the steps needed to file for NTN Number online:
Step 1:
Firstly you need to create an account on this website: Click here
Click on Registration for Unregistered Person.
Step 2:
After clicking the button, you need to fill the form with following details:
- CNIC
- Name
- Contact number
- Address
- Valid email address
After submitting the information, a 6-digit verification code will be sent to your phone and email address. Enter the codes in the relevant fields and submit again. Your account will be created and you will receive a password and pin from FBR via SMS or email. Use the User ID and password sent to you, to log in to your account.
Step 3:
After logging in to your IRIS account, click on draft. You will see a 181 application form, click on edit here. Now you see tabs for different categories such as Personal Tab, Business Tab, Property Tab, Link Tab, Attachment and Bank Account tab.
Now you will simply fill out the information in the form.
For salaried person: Simply you need to write employer NTN in the Link tab. You don’t need to fill information in Business Tab and Bank Tab. Submit to complete the registration. Necessary documents should be attached.
For Businessmen: All necessary information under Business Tab and Bank Tab needs to be filled out.
With the Government adamant that every person should legitimize and declare his income sources, it is of utmost importance to apply for an NTN number when a person falls in the income bracket. Having an NTN number also has numerous benefits for the individual in the longer run as well.