A person may register for income tax by applying for a National Tax Number (NTN) at the Tax Facilitation Center of the Regional Tax Office (RTO) of the Federal Board of Revenue (FBR).Online facility of filling NTN application is also provided by FBR on its official website. According to the Income Tax Ordinance, 2001, every business must register for income tax and obtain NTN. Other regulatory / trade authorities such as Chambers of Commerce and trade bodies, Utility Authorities, etc. also require NTN in their forms for application.
Requirements for National Tax Number (NTN) Certificate in Pakistan
A Taxpayer in Pakistan can e-Enroll itself under three types of business categories:
- Individual (sole proprietor)
- AoP (association of persons or a partnership firm)
To apply for NTN, the company or firm must submit a one-page form (the NTN Form) as well as Proof of Registration, the Memorandum and Articles of Association, Bank Account number, copies of the Computerized National Identity Cards of its directors and an attestation of the registered business address at the nearest tax facilitation counter of the Regional Tax Office in Pakistan.
All applications are forwarded to the Central Registration Office (CRO) in Islamabad, which allots a number, known as NTN to each company or firm. The Center processes the application and issues the NTN at no cost. The certificate is sent to the registered address of the applicant. The company/firm can track the application online or through RTO helpline. If undelivered, the NTN certificate can be collected from the specified office at the Federal Board of Revenue. The Income Tax is paid on filing the Tax Return, which is due within 6 months at the end of the company’s financial year (usually on June 30).
Reforms have been introduced to make the tax registration fully electronic and user friendly. Since 2002, after the introduction of the Income Tax Ordinance, 2001, an NTN is issued with a continuous valid term, i.e. there is no need to renew the number. Further, no cost is associated with registration of NTN unless one employs the services of a lawyer.
Process of e-Enrollment For Tax Returns (FBR Online Tax Filling)
Presently, taxpayers are required to file their income tax and sales tax etc. Online tax returns or statements can only be sent only by using e-FBR Portal facility. In order to use e-FBR facility/start e-filing, taxpayer is required to enroll at e-FBR Portal.
- Open up https://e.fbr.gov.pk in Internet Explorer (use only the Microsoft Internet Explorer browser as the FBR website won’t be accessible with any other browser.
- On the FBR taxpayer portal page, click on the ‘Application > Application Form’ menu link.
- You will find another page with heading as request for e-Enrollment containing the following columns (These columns are required to be filled by the applicant. Information given here must match with data given in application form for issuance of NTN):
Taxpayer Type – Individual (if you click popup as individual then other columns will appear as follows)
- NTN (Enter here business individual NTN)
- CNIC (Enter here CNIC of the owner or the applicant)
Taxpayer Type – Company (If you click popup as Company then other columns will appear as follows)
- NTN (Enter here company’s NTN)
- Reg/Inc No. (Enter here Company’s Incorporation No.)
- Director NTN (Enter here Company authorized Director’s NTN)
Taxpayer Type – AoP (If you click popup as AOP then other columns will appear as follows)
- NTN (Enter here AOP’s NTN)
- Reg/Inc No. (Enter here AOP’s Registration No.)
- Partner NTN (Enter here AOP authorized Partner’s NTN)
After carefully completing all above columns as the case may be, click the Next Button. You will find another page with heading as taxpayer enrollment form.
How to Fill Taxpayer Enrollment Form of FBR Website
Carefully complete the taxpayer enrollment form. This form consists of the following sections:
- Registry Section
- Representative Section
- Directors/Partners Section
- Activity Section
- Business/Branch Section
- Bank Section
- Declaration Section
- Official Area
- Verification Section
Some of your previously entered data that you provided during the NTN application, will automatically be available.
- Registry section is required to be filled completely and must be matching with your data given with your NTN application.
- To fill Activity column, click ‘Select Activity’ button which will help you to find out your concerned business activity among different business activities already present in built-in form. Here applicant has to give only main business activity e.g. if applicant is doing import and export with import as principal business activity then here he/she will show import only. Secondary activities have to be given in Activity Section.
- At Representative Section if applicant is an individual and representing itself, then he/she will click at Self Button. Other wise he/she will complete the remaining portion of Representative Section.
- After completing registry and representative section click Save Registry Button to Save the Data. After completing saving process then you can proceed further to complete the next portions.
- Director/Partner section is not applicable to Individual business categories. If more than one Director for addition of next Director/Partner click add button until and unless entry of all Directors/Partners is completed.
- In Activity section applicant has to provide information about secondary business activities up to three other than principal business activity given in registry section. For help to chose business activity present built-in click at Select Activity Button. For addition of every new activity click to Add Activity button.
- If individual, AoP or Company applying for e-Enrollment also doing another business or have any business branch information all other businesses or branches will be provided in Business/Branch Section. For every additional business/branch click to Add Business button.
- In Bank section applicant will provide information of Bank Accounts of Individual, AoP or Company as the case may be. Click to Add Account button for addition of every new additional Account.
- Declaration Section will automatically fetch the CNIC/Passport No. and Name of the Applicant.
- Official Area need not be filled by the Applicant
- At the end of the application Applicant will click to Verification Application button. He/She will find a Slide asking for CNIC No. After entering CNIC No. applicant will click Submit button on the Slide and then click to Close button on slide to complete the verification process. You will see that indication at the top of the application will appear as > Verified. In case applicant wants to edit already completed application he can do this before submitting application by clicking Edit Application button at the end of the application.
- For printing application applicant will click Print Application button
- After completing all above requirements successfully and completely, applicant will submit application by clicking Submit Application button.
- After submission of Application applicant will receive an e-mail containing an Activation Code and an Acknowledged link at the e-mail address given in Representative Section of Application.
- Applicant will open the Acknowledged link by clicking Acknowledged to find a webpage asking for entering activation code. After entering activation code applicant will acknowledgement of submission of application. To retrieve the application, applicant will click to Acknowledged link.
- After taking print of application and dully singing it applicant will send it via post to concerned Commissioner of IP (Information Processing) Division. Afterward applicant will receive his/her ID and Password to use e-FBR Portal for e-Filing etc.