NTN stands for National Tax Number. The National Tax Number registration certificate is used by all taxpayers, including both permanent and temporary residents of Pakistan, to track their taxable incomes and valuable assets. Pakistan’s tax authority, the Federal Board of Revenue (FBR), assigns NTNs (National Tax Numbers) to taxpayers for the purposes of assessing their income tax. All taxable activities require an NTN number certificate or online verification on the FBR website, regardless of how much income is generated or how marketable they are.
In Pakistan, you must pay taxes if you have an income. An NTN is needed to pay the tax. Each salaried person and business person is required to pay taxes by the Federal Board of Revenue. You must register yourself with the Federal Board of Revenue (FBR) in order to pay these taxes in Pakistan.
A National Tax Number (NTN) is required if you owe income tax, property tax, or sales tax in Pakistan. Tax filers also benefit from reduced vehicle token taxes. For non-filers, the tax rate on banking transactions, property transactions, and vehicle tokens is higher.
Being a tax filler is better because you avoid the higher rates on many things. Pakistan requires National Tax Numbers (NTNs) for tax filing. The Federal Board of Revenue (FBR) can generate your National Tax Number (NTN) for you if you are a salaried employee. Tax returns are, however, filed with FBR.
Individuals, businesses, and non-profit organizations need NTN numbers.
The withholding tax rate will be higher on cash withdrawals from banks, cash transfers, car purchases, and real estate transactions if you do not file an income tax return.
Those who give income to the government must obtain the NTN by registering themselves with the FBR. An individual with the NTN enjoys the following advantages:
In accordance with the Income Tax Ordinance 2001, public and private companies are required to register their NTN number in Pakistan in order to file yearly and quarterly income tax statements and withholding tax returns. NTN numbers do not need to be renewed periodically since the Income Tax Ordinance was introduced in 2001. People in Pakistan can now easily register NTNs.
Nowadays, the process is very simple. For your National Tax Number, you do not need to visit the Federal Board of Revenue office. NTN can also be obtained online by visiting the IRIS FBR portal https://iris.fbr.gov.pk/public/txplogin.xhtml
If your income falls within the bracket of taxable income then you have to get NTN from FBR. If your income is 6 lacs per year then you are liable to pay the income tax. You need NTN to file your tax returns.
Are you looking to register your NTN to become an active taxpayer in Pakistan? Taxocrate (Pvt) Ltd provides the facility of online registration and verification of NTN Certificates through the CNIC.
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