How To Apply For NTN In Pakistan?

Every individual and business in Pakistan needs to pay taxes, as it is not only a legal duty but also a sign of being a responsible citizen. However, individuals and businesses face challenges in fulfilling their tax obligations because they will only be declared a registered person if they are assigned a National Tax Number by the FBR. 

Therefore, an individual or a company must obtain a National Tax Number (NTN) to register with FBR online through the Iris portal. Without an NTN, you cannot officially file tax returns and run a registered business in Pakistan.  In this article, we describe what an NTN is in Pakistan, why it is required, how you can get it, and the required documents. In the end, we explain how the experts at Company Enrolla can help you obtain an NTN for both individuals and businesses. 

What Is NTN In Pakistan?

National Tax Number (NTN) is a tax number assigned by the Federal Board of Revenue (FBR) that is required by individuals, companies, and associations for tax payment. It is a legal identification that the holder is a taxpayer in Pakistan. It is required for every person whose income exceeds the tax threshold, every business proprietor, and all those included in the tax net.

NTN is linked with the Computerized National Identity Card (CNIC) of individuals and the documents of incorporation for companies. Once you get the NTN, you can file tax returns, pay taxes, and get benefits like exemptions and deductions under the Income Tax Ordinance 2001. Without an NTN, you are outside the official tax system and may face fines or restrictions.

Importance of NTN Registration in Pakistan

NTN registration in pakistan brings an individual or a business into the tax network, and it holds great importance as given below: 

Legal Compliance

NTN registration makes you compliant with the rules of the Federal Board of Revenue (FBR). It places you in a safe legal position and saves you from any risk of penalties and legal issues.

Business Legitimacy

With NTN registration, companies can maintain an official presence in the market. It provides credibility so that customers, suppliers, and investors trust the company more easily.

Banking Transactions

Many banks in Pakistan demand an NTN as a mandatory requirement to open a corporate bank account for business purposes. It is also required to manage large-scale payments and financial transactions.

Tax Benefits

Having an NTN number allows taxpayers to file returns while enjoying numerous tax benefits provided by the government. The tax benefits include tax credits and tax exemptions that reduce the tax liability.

Government Contracts

If you want to participate in government contracts, you need to register for an NTN. Contractors and suppliers are also required to have the NTN to be eligible to bid on government contracts.

How To Apply For NTN In Pakistan? (Detailed Guide)

It has become easy to apply for NTN in Pakistan as the entire process can be completed online through the Iris portal. The following is the step-by-step process:

Step 1: Access the FBR Iris Portal

First, you need to visit the official Iris portal. It is the online tax registration and return processing platform provided by the Federal Board of Revenue (FBR). It is the online platform on which applications for NTN registration are processed.

Step 2: Create Your Account

Secondly, you must sign up to create an account on the Iris portal if you are registering for the first time. In order to create an account, you need to provide your CNIC, full name, cell number, and email address. After that, you will be provided with an OTP for identification purposes.

Step 3: Log in to Your Profile

Once your account is created, you can log in using your CNIC and password. After this step, you can easily access your dashboard, where all tax services are available. You can start the NTN registration procedure by selecting the relevant category, whether it is individual, non-resident individual, or a company.

Step 4: Fill Out the NTN Application Form

In the fourth step, you need to fill out the NTN application form on the Iris portal. You need to fill in all personal and business-related information to complete this step.

Step 5: Attach the Required Documents

After completing the form, you need to upload all the required documents for NTN registration. The required documents vary for individuals as well as different company structures. You need to make sure all documents are correct and are scanned correctly.

Step 6: Submit Your Application

In this step, you submit your application online through the same Iris platform. After submission, you will get a receipt that shows your application has been successfully submitted to the FBR.

Step 7: Verification and Issuance of NTN

In the last step, the Federal Board of Revenue will review your application. If all of the information and documents provided are correct, an NTN will be assigned to you. You can easily download the NTN certificate directly from the Iris portal by using your credentials. 

Documents Required To Apply For NTN

The following are the required documents for individuals and different business structures to apply for an NTN to the FBR in Pakistan: 

For Individuals:

• Copy of a valid CNIC
• Recent passport-size photograph
• Proof of address (utility bill, rental agreement, etc.)
• Mobile number registered against CNIC
• Email address

For Sole Proprietorship Business:

• Copy of the CNIC of the owner
• Business name and business letterhead
• Office address proof (rent agreement, ownership papers, utility bill)
• Business bank account details
• Active email address and contact number

For Companies (Private or Public Limited):

• CNICs of directors
• Business letterhead
• Certificate of incorporation issued by SECP
• Memorandum and Articles of Association
• Active email address and contact number
• Registered office address proof
• Business bank account details

Who Should Apply For NTN In Pakistan?

The following categories of individuals, as well as companies, should apply for NTN in Pakistan:

• The individuals who are earning above the taxable income threshold.
• All types of business owners and entrepreneurs.
• Freelancers and professionals offering services locally or internationally.
• Property owners receive rental income.
• Companies registered under the SECP.
• Associations and NGOs receiving funds or donations.

Benefits Of Registering For NTN In Pakistan:

The following are the benefits of registering for NTN in Pakistan: 

Taxpayer Recognition:

Having an NTN, you become a recognized taxpayer of the Federal Board of Revenue. Such recognition allows your financial activities to be formally recorded and legally recognized.

Banking Access:

With NTN, you can easily access banking facilities across Pakistan for any of your personal and business-related transactions.

Legal Protection:

An NTN keeps you in line with tax laws, mitigating the risks of fines and legal issues. It makes sure your financial dealings are legal and in accordance with Pakistan’s regulations.

Financial Credibility:

With an NTN, business firms and individuals are more trusted by banks, customers, and institutions. It indicates that you are conducting business formally and responsibly in financial dealings.

Business Opportunities:

NTN is required for businesses participating in government contracts and tenders. It provides them access to authorized projects and enhances prospects for business development.

How We Can Help You?

Apparently, NTN registration may appear to be a simple process, but individuals and businesses face challenges with documentation, verification, and FBR compliance. At Company Enrolla, our experts help you get NTN for you and your business easily. 

Our professionals make sure that your application is properly filled out on the Iris portal, all required documents are properly submitted, and NTN is received on time, without any cause for delay. Our experts offer complete tax registration and advisory services so that your tax matters are properly managed and meet all the requirements of FBR. 

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