Cancellation of Income Tax Registration in Pakistan ( How do I cancel my FBR registration?

If you have closed your business, dissolved your partnership, or ceased income-generating activities, it’s important to formally cancel your Income Tax Registration with the Federal Board of Revenue (FBR). Failing to do so can result in unnecessary tax notices, late filing penalties, and continued obligation to file tax returns—even when your business is no longer operational.

This article outlines the complete process for cancelling income tax registration in Pakistan, also known as FBR de-registration, including documents required, legal steps, and what to expect after submission.

Who Can Apply for De-Registration?

The following categories of taxpayers can apply for cancellation of income tax registration:

• Individuals (freelancers, consultants, salaried persons) who no longer earn taxable income

• Proprietorship businesses that have been shut down

• Partnership firms (AOPs) that have been dissolved

• Companies that are no longer operational or have been liquidated

• Foreign companies closing operations in Pakistan

Common Reasons for De-Registration

• Business closure or wind-up

• Change in business structure (e.g., conversion from AOP to company)

• Dissolution of partnership

• Migration or change in tax jurisdiction

• Permanent retirement from taxable activity

• Duplicate NTN or registration error

Step-by-Step Guide to Cancel Income Tax Registration in Pakistan

Step 1: Prepare a Written Request for De-Registration

Start by writing a formal application addressed to the Commissioner Inland Revenue at your relevant Regional Tax Office (RTO). The letter should include:

• Your Name, CNIC/NTN

• Business Name (if applicable)

• Reason for de-registration

• Tax year till which returns have been filed

• Declaration that there are no pending liabilities

You may also initiate this through your IRIS login if online de-registration functionality is enabled for your profile.

Step 2: Clear All Tax Liabilities

Before the FBR processes your de-registration request, you must:

• Pay all outstanding tax dues

• File any pending tax returns (income tax and sales tax)

• Ensure there are no ongoing audits, assessments, or appeals

You can check your tax status by logging in to the FBR IRIS portal and reviewing your tax ledger.

Step 3: Submit Proof of Business Closure or Dissolution

Along with your request, attach supporting documents depending on your business type:

For Individuals

• CNIC copy

• Proof that you no longer earn taxable income (e.g., resignation letter, emigration documents, etc.)

• Declaration of cessation of activity

For Sole Proprietorship

• Business closure affidavit

• Last utility bill showing business closed

• Lease termination or property handover documents

• Letter to bank for account closure (if available)

For AOPs (Partnership Firms)

• Partnership dissolution deed

• Resolution signed by all partners

• CNICs of all partners

• NTN certificate copy

For Companies

• SECP winding-up resolution or dissolution certificate

• Final audit reports

• Letter from Registrar of Companies acknowledging closure

• CNICs of directors and final Form-29

Step 4: Apply for No Objection Certificate (NOC) from FBR

Once you have cleared all dues and submitted supporting documents, request a No Objection Certificate (NOC) from FBR. This is issued after:

• Verifying that no amount is payable

• Confirming all returns have been filed

• Ensuring no active audit or legal proceedings are pending

This NOC is crucial for final de-registration and can be obtained from the relevant FBR field office or through your authorized representative.

Step 5: Submit De-Registration Request with NOC

Attach the NOC with your de-registration application and submit it to the:

• Relevant Inland Revenue office (RTO)

• Facilitation counter of FBR

• Or upload it via the IRIS portal, if applicable

Once the request is accepted, FBR will mark your NTN as “inactive” in their system.

Step 6: Await Confirmation from FBR

After review, FBR will issue a formal cancellation notification or mark your status as “de-registered” in the Active Taxpayer database.

You can verify this by:

• Logging into IRIS

• Searching your NTN using FBR’s Taxpayer Profile Inquiry tool

Keep a copy of your de-registration confirmation for future legal or financial use.

What Happens After De-Registration?

Once your income tax registration is cancelled:

• You are no longer required to file tax returns

• Your NTN will be marked as “inactive” in FBR records

• You will be removed from the Active Taxpayers List (ATL)

• No further tax notices or penalties will be issued unless there are historical discrepancies

However, you must reactivate your NTN if you resume business or taxable activity in the future.

Key Points to Remember

• Sales tax registration (STRN) must be cancelled separately

• You cannot cancel registration if any audit, appeal, or recovery is pending

• Maintain a record of de-registration for at least 6 years

• If SECP-registered, de-register with SECP and FBR in parallel

• Ensure all withholding statements, sales tax returns, and financial statements are filed before exit