Tax Registration in Pakistan

Step by Step Guide for Tax Registration in Pakistan

NTN Registration

The Federal Board of Revenue (FBR), formerly known as Central Board of Revenue (CBR), is a top federal government organization of Pakistan issues the National Tax Number (NTN), which is used as the identity of any business; like companies and individuals like salaried persons and business executives. Every taxpayer should have an NTN number and it can be verified online from the website of Federal Board of Revenue (FBR) Pakistan. This is necessary for bank account opening, business transactions, tax return fillings of individuals and companies and as well as for filing tender notices and bids with government departments, developmental organizations and multinational companies.

NTN for Salaried Person

Every person, who is doing job in public or private sector on a reasonable post must have NTN for filing of annual income tax return to become filler and the non-filer has to face the  high rates of withholding tax on banking transactions, vehicle purchase and vehicle token.

Requirements of e-enrollment for a Salaried Person are as follows:

• CNIC/NICOP/Passport number
• Cell phone number in use

• Active e-mail address
• Nationality
• Residential address
• Accounting period
• Name and NTN of employer
• Address of property in case of property income
• Salary Slip or Salary Certificate
• Copy of Electricity Bill

NTN for Business Individual

Any sole proprietor, company director and firm partner must have NTN as a Business Individual category for filing of annual income tax return to become filler and the non-filer has to face the high rates of withholding tax on banking transactions, vehicle purchase and vehicle token. Having an NTN as sole proprietors, the individuals can open bank account and are not required to be registered with any other regulatory or registration authority and they can file tender notices and bids with government departments, developmental organizations and multinational companies.

Requirements of e-enrollment for Business Individual are as follows:

• CNIC/NICOP/Passport number

• Cell phone number in use
• Active e-mail address
• Nationality
• Residential address
• Accounting period
• In case of business income
  • business name
  • business address
• Principal business activity
• Address of property in case of property income
• Copy of Electricity Bill
• Copy of lease agreement or ownership documents

NTN for AOPs

The Association of Partnership is also called Partnership Firm also required NTN to file income tax return to become filer and to avail lower tax rate like withholding tax on business transactions, either supplies and service.

 

Principal Officer of AOP needs to ensure that the following information is available before starting an e-enrollment.

Following particulars are required for registration:

• Name of AOP/Partnership Firm
• Business name
• Business address
• Accounting period
• Business phone number
• E-mail address
• Cell phone number of principal officer of the AOP
• Principal business activity
• Address of establishment or principal place of business
• AOP/Partnership Firm type
• Date of registration
• Registration certificate/Form – C, and partnership deed
• Partnership deed in case firm is not registered
• Name of representatives with CNICs or NTNs
• Copy of Electricity Bill
• Copy of lease agreement or ownership documents
• Following particulars of every partner having 10% or more shares in case of an AOP, namely:-
  • Name
  • CNIC/NTN/Passport and
  • Share %

NTN for Company

Company is called the private limited company, public limited company, single member company, non-profit company and non-governmental organization is required NTN to file income tax return, whether operational or non-operational and to avail lower tax rate like withholding tax on business transactions, either supplies or service.

Principal Officer of company needs to ensure that the following information is available before starting e-enrollment

Following particulars are required for registration:

• Name of company
• Business name
• Business address
• Accounting period
• Business phone number
• E-mail address
• Cell phone number of principal officer of the company
• Principal business activity
• Address of business establishment or principal place of business
• Company type, like public limited, private limited, unit, trust, NGO, society, small company, Modaraba or any other
• Date of registration
• Incorporation certificate by Securities and Exchange Commission of Pakistan (SECP) in case of company or other
• Trust deed in case of trust
• Registration certificate in case of society
• Name of representatives with CNICs or NTNs
• Copy of Electricity Bill
• Copy of lease agreement or ownership documents
• Following particulars of every director and major shareholder having 10% or more shares in case of company, namely:-
  • Name
  • CNIC/NTN/Passport and
  • Share %

 

Requirements for registration of non-resident company having permanent establishment in Pakistan shall furnish the following particulars:

• Name of company
• Business address
• Accounting period
• Phone number of business
• Principal business activity
• Address of principal place of business
• Registration number and date of the branch with the Securities and Exchange Commission of Pakistan (SECP)
• Name and address of principal officer or authorized representative of the company
• Authority letter for appointment of principal officer or authorized representative of the company
• Cell phone number of principal officer or authorized representative of the company and
• Email address of principal officer or authorized representative of the company

Non-resident company not having permanent establishment in Pakistan shall furnish the following particulars:

• Name of company
• Business address in the foreign country
• Name and nationality of directors or trustees of the company
• Accounting period
• Name and address of authorized representative of the company
• Authority letter for appointment of authorized representative of the company
• Cell phone number of authorized representative of the company
• Email address of authorized representative of the company
• Principal business activity and
• Tax Registration or incorporation document from concerned regulatory authorities of the foreign country

Sales Tax Registration

Any registered business involved in activities on which sales tax (also called General Sales Tax –GST), is applicable are liable to get registered with FBR for sales tax as well as with other provincial revenue authorities if applicable. Sales tax registration is also required to enter bidding or tendering process with a government department, development agencies, or multinational company, even a business is not involved in taxable activities.

Following documents required for Sales Tax Registration

For Business Individuals:

• Copy of CNIC/Passport (for Foreign Nationals)
• Copy of NTN of Business Individual
• Copy of Lease Agreement or Ownership documents
• Paid Electricity Bill of Registered Office
• Request on Letterhead
• Bank Account Maintenance Certificate

For AOP/Partnership Firms:

• Copies of CNIC of all Partners
• Copy of NTN of the AOP
• Copy of Lease Agreement or Ownership Documents
• Paid Electricity Bill of Registered Office
• Letterhead of AOP
• Bank Account Maintenance Certificate

Note: Sales tax registration with FBR is required for AOP is required if AOP is involved in taxable activities.

For Companies

1. Copies of CNIC of all Directors
2. Copy of NTN of the Company
3. Copy of Lease Agreement or Ownership Documents
4. Paid Electricity Bill of Registered Office
5. Letterhead of Company
6. Bank Account Maintenance Certificate of Company
7. Company Registration Documents

Note: Sales tax registration with FBR is required for Company, if Company is involved in taxable activities.

Provincial Sales Taxation

Provincial revenue authorities / boards were constituted in provinces, after the 18th constitutional amendment in Constitution of Islamic Republic of Pakistan collection of sales tax on services came under the domain of provinces and the service providers are required to be registered with relevant provincial revenue authorities in the jurisdiction of which services are rendered, if business providing services are running in two or more provinces then registration with all relevant provincial revenue authorizes required.

1. Punjab Revenue Authority (PRA)

1. KPK Revenue Authority (KPRA)
2. Sindh Revenue Board (SRB)
3. Balochistan Revenue Authority (BRA)
4. Islamabad Capital Territory (Revenue Department)