If you’re generating an income in Pakistan, you are bound to pay certain taxes to the government. New entrepreneurs, salaried persons and even stable business owners should have a good understanding of the local, state and federal taxes that they are obligated to file. These taxes include sales, income, excise, property and employment taxes etc. However, for filing your taxes, you should register yourself as a taxpayer and for that you need a National Tax Number most commonly known as the NTN.
As defined by the Federal Board of Revenue (FBR), an individual either salaried or a business person (who earns a certain amount of money) is obligated to pay taxes at the end of each year. This is done by registering yourself as a taxpayer in the FBR and an NTN number is required for this registration. Thus, NTN is described as a unique identification (ID) allotted by the FBR to run any taxable proceedings either salaried or business transactions.
People in Pakistan are often confused if they are liable to get an NTN or not. Following are some details which will help in clarifying who should get it:
Any individual whose earnings fall within the taxable income bracket as defined by the FBR is required to get his/her NTN and any individual whose annual income is Rs.600,000 or more is legally responsible to pay and file the income tax returns and for that he/she needs an NTN.
You’re required to have your NTN for a lot of things. If you’re a businessman, you need it for opening your business bank account. It is mandatory to have an NTN for filing income tax, sales tax, property tax and federal excise etc. For salaried individuals, the designated NTN number is generated by the employer from the FBR. In short, you need an NTN to carry out all the financial transactions in the country and irrespective of your profits or earnings; you’re obligated to file the annual tax returns in the FBR.
Gone are the days when you had to visit the FBR office to register your NTN. Now the entire procedure of acquiring your National Tax Number is online. It is a simple process and you can easily do it by following the simple steps mentioned in this article later.
If a salaried person intends to register himself/herself for an NTN, he/she should submit the following documents to the FBR:
If a business person intends to register himself/herself for an NTN, he/she should submit the following documents to the FBR:
In order to get your NTN, you should make your account on the official FBR website. The online process is pretty much simple. Let us guide you through the following steps:
These online steps are the most easiest to get your NTN from the Federal Board of Revenue Pakistan. Many people also opt for the offline option for their NTN; however that is quite a hassle. Any person going for the offline process for their NTN registration is required to appoint a tax consultant first. On the other hand, with this online option, anyone in Pakistan can register themselves easily and get their NTN.
People in Pakistan are mostly hesitant to file their taxes because they are not aware of the benefits they can enjoy that our government offers to its active taxpayers such as:
These are just a few advantages. Paying your taxes on time makes you a responsible citizen who becomes a part of the country’s progress. The present government is critically dealing with non-tax payers. So, become a good citizen of Pakistan and register for your NTN today.