If your income falls in the category of taxable net income then you will need to get NTN number from FBR to become a filer for filing income tax. If you don’t have an NTN number then you can get one by reading this easy guide till the end.
What is NTN Number?
Before moving on to how to get NTN number in Pakistan, you need to understand what is NTN number?
NTN stands for National Tax Number. NTN number is a specific code that is issued by the Federal Board of Revenue (FBR) and is necessary for every individual- either salaried or businessman. National Tax Number is used for filing taxes as a filer. Hence, it is a must for everyone to have this number by FBR.
The only Government authority that issues NTN number is FBR. For salaried individuals, this number can be generated by the employer. But it is not compulsory for employers to facilitate employees.
Why NTN number is required?
If your salary or net business income lies in the category that it is more than taxable income, then you are liable to pay an annual income tax return. For this, you must have a National Tax Number (NTN) to pay income tax, sales tax, or property tax in Pakistan. This tax return is collected by FBR.
When you get an NTN number then you become a tax filer. It benefits you in comparison to a non-filer who have to pay an extra tax rate on banking transactions, property transactions, vehicle purchase, etc. You can get NTN registration free of cost. You don’t have to pay any charges for registration. However, you have to pay a consultancy fee to tax consultation agents.
Eligibility Criteria to get an NTN number by FBR
FBR has defined an income and if your net income or salary is more than that then you can apply for NTN number to pay taxes. If you don’t pay your taxes on time, then you will have to face a severe penalty by FBR.
For job holders, both private and government employees, who are receiving a salary equal to 6 lacs or less than this are not bounded to pay any tax return to FBR. As their salary increases, from 6 lacs to 12 lacs, then they have to pay a 5% tax return. Put simply, as salary or net income increases the percentage of tax return increases as well.
How to get NTN number?
Before you apply to FBR for NTN number, you should have all the necessary documents required for this. If you are a salaried person, then the documents required for getting an NTN number will be different than a person who is doing business or owns a company. So, let’s first have a look at the documents required for NTN number registration.
Documents Required for Salaried Person NTN
- Copy of employee’s CNIC
- Copy of last paid electricity bill (not older than 3 months)
- Recent payslip
- Contact information (mobile and landline) and an active Email address
- NTN number of the employer, office address, and official Email address
Documents Required for Business NTN
- Copy of valid CNIC of the business owner
- Copy of last paid electricity bill of the business location
- Copy of Letter Head
- Registry copy or Rental Agreement
- Contact information (Mobile number, landline number, and a valid Email address)
- Type of business
Documents Required for Company NTN
- Copy of valid CNIC all the Board of Directors
- NTN number of all the Directors
- Copy of recently paid electricity bill
- Rent Agreement or Registry copy
- Copy of Letter Head
- Copies of Form 29, Form 21
- Copies of Memorandum of Association
- Copy of Company Registration certificate
- New mobile number and email address that is not in used by anyone for tax
- Authority letter
2 Ways to get NTN number from FBR
You can get your NTN number from FBR in two ways and these are:
Method 1: Get NTN number by visiting FBR office (Offline System)
You can visit the FBR office with all the required documents to apply for an NTN number. Complete the process of registration. You have to hire a tax consultant to apply via the offline system to get NTN number from FBR.
Method 2: Get NTN number through IRIS FBR system (Online System)
The online e-portal is launched by FBR to get the NTN number online which is much convenient than the offline system. The NTN number registration online is done by this easy to understand IRIS FBR system. If you are looking for an answer for how to get NTN number online, how to get NTN number in Pakistan, or how to get NTN number from FBR, then follow this simple step by step guide to get NTN number online from the IRIS FBR system:
Step 1– Go to the official website of the Federal Board of Revenue. A homepage will open and there you will click on Registration for Unregistered Person.
Step 2– A form will open in front of you. Fill that form by providing details like your name, CNIC number, contact number, address, and a valid email address. After providing all the information, click on “Submit”.
Step 3– You will receive a 6-digit verification code both on the mobile number and email address. In form, you will have to add these codes. Enter both the codes and click on “Submit”.
Step 4- After this, a password and PIN will be sent to your mobile number and email address. Your CNIC number will become your User ID.
Step 5-Now, you will go to IRIS and log in by using your User ID and password sent both on your mobile number and email address.
Step 6-After Logging in, click on the draft. By clicking on this a form will open. From the menu bar click on the “Edit” button. You will see different tab categories on this form like Personal Tab, Business Tab, Property Tab, Link Tab, Attachment, and Bank Account Tab.
Step 7– You will have to provide all the information required in the property and link tab. In the link tab, you will be asked to provide the NTN number of the company or employer if you are a salaried person. You will leave the business tab and bank tab blank if you are applying for a personal NTN number. In the end, click on the submit registration form.
Note: If you are a businessman and want to apply for NTN from FBR, then you will have to provide all the information under the Business and Bank Tab.
The government of Pakistan had made it mandatory for each citizen to declare and legitimize his income sources. Therefore, it is necessary for every person who has an income more than the limit defined by FBR to apply for NTN number from FBR.
Benefits of National Tax Number (NTN) in Pakistan
- An NTN holder is considered a responsible citizen of the country and the Government gives many benefits to a person, business, or firm having NTN number. Here are some of the benefits an NTN holder can avail of in Pakistan.
- An income taxpayer can participate and Government contracts and in auctions.
- A person having NTN can attend many business meetings that will favor him to grow his business.
- It is compulsory to have an NTN number for anyone who wants to become a member of the chamber.
- An income taxpayer can make contracts and business deals with foreign companies and agencies.
- An NTN holder is preferred for an abroad visa. While applying for a visa, you have to show a detail of your assets.
- The government also prefers a person for jobs who is a responsible income taxpayer.
- A person having NTN is also trusted by business participants which also makes it easy for business owners to expand their businesses.
Conclusion
National Tax Number (NTN) is a necessity for a salaried person, business, or company. Every person who has a taxable income should pay a specified tax percentage defined by FBR. You can get an NTN number from FBR by both offline and online systems. For online registration, you have to go to IRIS FBR online portal which is more convenient than visiting an FBR office. By following this step by step guide, you can easily become a filer and become eligible for filing taxes. Paying taxes is now compulsory for everyone in Pakistan if their income falls in the taxable income bracket.
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