To file income tax, you must have an NTN number from FBR if your income falls within the taxable net income category. You can read this guide to learn how to get an NTN number.
What is an NTN number?
Before you can find out how to get NTN numbers in Pakistan, it is important to first understand what NTN number means.
NTN is the National Tax Number. The Federal Board of Revenue (FBR), issues the NTN number. It is a unique code that is required for all individuals, whether they are salaried or not. For filing taxes, a National Tax Number is required. Hence, it is a must for everyone to have this number by FBR.
FBR is the only government authority that can issue NTN numbers. This number is available to salaried workers by their employer. Employers are not required to provide this number for salaried employees.
Why is an NTN number required?
You are responsible for an annual income tax return if your salary or net income is greater than taxable income. For this, you must have a National Tax Number (NTN) to pay income tax, sales tax, or property taxes in Pakistan. FBR collects this tax return.
You become a tax filer when you obtain an NTN number. This is a benefit to you over a non-filer, who must pay an additional tax rate for bank transactions, property transactions, and vehicle purchases. You can get NTN registration free of cost. Registration is free of charge. You will need to pay a consultation fee for tax consultants.
Eligibility Criteria for an FBR NTN number
FBR has established an income. If your net income is less than this, you can apply to get an NTN number to tax. FBR will impose severe penalties on you if you fail to pay your taxes in time.
Private and government workers who earn less than 6 lacs are exempt from having to file a tax return to FBR. Their salary will increase from 6 to 12 lacs to 12 and they must pay a 5% tax back. Simply put, the tax return percentage increases with increasing salary or net income.
How do I get an NTN number?
Before you apply to FBR for an NTN number, you should have all the necessary documents required for this. For salaried persons, the requirements for obtaining an NTN number are different from those required for those who own a business. Let’s take a look at what documents are required to register an NTN number.
Documents required for Salaried Person NTN
Copy of CNIC for employee
Copy of the last electricity bill paid (not older than three months).
Recent payslip
Contact information (mobile, landline, and active email)
NTN number, address, and email address of the employer
Documents required for NTN Business
Copie of valid CNIC from the business owner
Copy of the last paid electricity bill for the business location
Copy of the Letter Head
Registry copy or Rental agreement
Contact information (Mobile number and landline numbers, as well as valid email address)
Type of business
Documents required for company NTN
All Board of Directors must have a copy of the valid CNIC
NTN number for all Directors
Copy of the most recent electricity bill
Copy of the Registry or Rent Agreement
Copy of the Letter Head
Copies of Form 29 and Form 21
Copies of Memorandum of Association
Copie of the Company Registration Certificate
Tax-free new mobile number and email address
Authorization letter
2FBR: How to obtain NTN number
FBR can give you your NTN number in one of two ways:
Method 1: Visit the FBR office to get the NTN number (Offline System).(
All required documents are required to apply for an NTN Number. Register. To obtain an NTN number from FBR, you will need to employ a tax consultant.
Method 2:You can get your NTN number online through IRIS FBR (Online System)(
FBR launched the online e-portal to obtain the NTN number online. This is more convenient than the offline system. This easy-to-understand IRIS FBR system allows you to register your NTN number online. This step-by-step guide will help you get an NTN online number.
Step 1Go to the official site of the federal Board of Revenue. The homepage will open, and you can click on Registration for an Unregistered Person.
Step 2- You will see a form. Complete the form and provide details such as your name.CNIC number contact number, address, as well as a valid email address. Once you have completed all information, click “Submit”.
Step 3- A 6-digit verification code will be sent to your mobile number and email address. These codes will be required to complete the form. Click on “Submit” to enter both codes.
Step 4A password and pin will be sent to your email address and mobile number. Your User ID will be your CNIC number.
Step 5Now, go to IRIS. Log in using your User ID (and password) sent on your mobile number as well as your email address.
Step 6Click on the Draft after logging in. Click on the link to open the form. Click on the “Edit” button in the menu bar. This form will display different tab categories such as Personal Tab, Property Tab, and Business Tab.
Step 7- All information will be required for the property and link tabs. If you are a salaried individual, the NTN number for the employer or company will be required in the link tab. If you are applying to a personal NTN, the bank tab and business tab will be left blank. Click on the submit registration button at the end.
Notice: If you are a businessman and wish to apply for NTN at FBR, you will need to complete all 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. Every person with an income exceeding the FBR limit must apply for NTN numbers from FBR.
Benefits of the National Tax Number (NTN), Pakistan
NTN holders are considered responsible citizens of the country. The Government offers many benefits to individuals, businesses, and firms with NTN numbers. These are some of the many benefits that NTN holders in Pakistan can enjoy.
Participation in Government contracts or auctions is possible for income taxpayers.
NTN patients can attend many business meetings, which will help them grow their business.
Anyone who wishes to join the chamber must have an NTN number.
An income taxpayer can enter into business and contract deals with foreign agencies and companies.
For an overseas visa, an NTN holder will be preferred. You must provide details of your assets when applying for a visa.
A responsible income taxpayer is also preferred by the government.
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. FBR requires that all persons with taxable income pay a specific tax percentage. FBR can provide an NTN number via both online and offline systems. You can register online at IRIS FBR online portal. This is easier than visiting an FBR office. This step-by-step guide will help you become a tax filer. Paying taxes is now compulsory for everyone in Pakistan if their income falls in the taxable income bracket.