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

If you are involved in the sale of goods, provision of services, import, or manufacturing, you may be legally required to register for Sales Tax with the Federal Board of Revenue (FBR). Registration enables you to obtain a Sales Tax Registration Number (STRN), comply with tax regulations, and avail benefits such as input tax adjustments and refund claims.

This guide outlines the complete step-by-step process to register for Sales Tax in Pakistan, updated for 2025, along with the documents required and filing obligations after registration.

What is Sales Tax?

Sales tax in Pakistan is an indirect tax levied on the supply, manufacturing, import, or sale of goods and services. It is collected at different stages of the supply chain and is regulated under the Sales Tax Act, 1990.

• The standard rate of sales tax is currently 18%, although certain goods and services may be taxed at different rates or exempted under special schedules.

Who Needs to Register for Sales Tax?

According to the Sales Tax Act, the following entities are required to register:

• Manufacturers

• Importers

• Wholesalers and Distributors

• Retailers (specific sectors)

• Service Providers (e.g., restaurants, ride-hailing services, telecoms)

• Online sellers (under FBR’s updated digital economy regulations)

If your business crosses the threshold of Rs. 10 million annual turnover or is involved in taxable supplies, registration becomes mandatory.

Step-by-Step Process to Register for Sales Tax in Pakistan

Step 1: Obtain a National Tax Number (NTN)

Before registering for Sales Tax, you must first register with FBR and obtain an NTN (National Tax Number). This can be done online via the IRIS portal or by visiting an FBR Tax Facilitation Center.

• Visit: https://iris.fbr.gov.pk

• Upload CNIC, business details, and bank certificate

• Once approved, your NTN will be generated

Step 2: Apply for Sales Tax Registration (STRN)

Once you have your NTN, log into your IRIS account and apply for Sales Tax Registration. Here’s how:

1. Log in to IRIS portal

2. Go to Registration → Form 181

3. Select “Sales Tax Registration”

4. Fill out business details, nature of business, product/service categories

5. Upload required documents

6. Submit the form for FBR review and verification

Required Documents

You’ll need to upload the following documents (scanned in PDF):

• Certificate of Incorporation (for companies) or CNIC (for individuals)

• Business bank account maintenance certificate

• Tenancy agreement or ownership document of business premises

• Utility bill (not older than 3 months) for the business premises

• Email address and mobile number (registered in your name)

• SECP registration certificate (if applicable)

Step 3: Obtain STRN (Sales Tax Registration Number)

After verification of your documents and approval from FBR, you will be issued a Sales Tax Registration Number (STRN).

This number will be used for:

• Filing sales tax returns

• Charging sales tax on your invoices

• Claiming input tax on purchases

• Staying on the Active Sales Taxpayer List

Note: Your NTN and STRN are often the same number, but categorized differently in the FBR system.

Step 4: Receive National Sales Tax Number (NSTN) – If Applicable

Under Pakistan’s new Single Sales Tax Portal, introduced for simplified registration, FBR may issue a National Sales Tax Number (NSTN). This applies to certain sectors including:

• Online platforms

• Service providers

• Freelancers exporting services
  NSTN aims to create unified registration across federal and provincial tax authorities (e.g., PRA, KPRA, SRB, BRA).

Check FBR or SRB guidelines to confirm NSTN applicability to your business.

Post-Registration: Sales Tax Compliance

Once registered, you are legally obligated to:

File Monthly Sales Tax Returns

• Sales Tax Returns (Form STR-7) must be filed monthly, by the 18th of every month

• Declare your total sales, purchases, and input/output tax

• Pay tax due via online payment methods (ADC, mobile banking, internet banking)

Maintain Sales Tax Records

Under the Sales Tax Act, you must maintain:

• Sales invoices with your STRN mentioned

• Purchase receipts

• Input tax records (for tax credit purposes)

• Inventory registers

FBR may audit your records at any time.

Get Integrated with FBR POS System (if applicable)

If you’re a Tier-1 Retailer, you’re required to integrate your Point-of-Sale (POS) system with FBR’s real-time invoice reporting mechanism.

This is mandatory for:

• Large retail chains

• Malls, grocery chains

• Brands with multiple outlets

• Online sellers over a certain threshold

Penalties for Non-Compliance

Failure to register or file sales tax returns can lead to:

• Heavy penalties and fines

• Suspension of NTN or STRN

• Delisting from FBR’s Active Taxpayer List (ST ATL)

• Legal action or prosecution under the Sales Tax Act, 1990

Benefits of Sales Tax Registration

• Access to formal business ecosystem

• Input tax credit on purchases and imports

• Required for corporate clients, tenders, and government contracts

• Eligible for tax refunds and export benefits

• Improved business credibility and compliance standing

• Appearing on the Sales Tax Active Taxpayer List (ST ATL)

Conclusion

Sales Tax Registration is not just a legal requirement — it’s a gateway to building a formal, recognized, and scalable business in Pakistan. Whether you’re a startup, freelancer, retailer, or manufacturer, staying compliant with FBR’s sales tax regulations helps avoid penalties and unlocks growth opportunities.

If you live or do business in Pakistan, registering with the Federal Board of Revenue (FBR) is a legal requirement. Tax registration allows individuals and businesses to get a National Tax Number (NTN) or Taxpayer Identification Number (TIN), enabling them to file returns, claim refunds, appear on the Active Taxpayers List (ATL), and operate legally.

Whether you are an employee, freelancer, sole proprietor, partner in a firm, or running a company — this step-by-step guide explains how to register for tax in Pakistan through FBR in 2025.

Step 1: Obtain a National Tax Number (NTN)

The National Tax Number (NTN) is your identity as a taxpayer. It is issued by the FBR upon registration and is mandatory for:

• Income tax filing

• Opening a business or salary account

• Property transactions

• Import/export activities

• Government tenders

How to Apply for NTN

There are two ways to apply for an NTN in Pakistan:

A. Online (for Individuals)

Use FBR’s IRIS portal:
🔗 https://iris.fbr.gov.pk/public/txplogin.xhtml

Create a new registration by providing:

• CNIC

• Registered mobile number

• Email address

• Scanned documents (bank certificate, tenancy proof, utility bill)

B. Physical (for Companies, AOPs, and Others)

Visit the nearest Regional Tax Office (RTO) or Tax Facilitation Center (TFC) with:

• CNIC (or SECP incorporation certificate for companies)

• Original business documents

• Proof of business address

• Bank certificate

• Utility bill of business premises

FBR officials will process your application and issue an NTN.

Step 2: File a Tax Registration Application

After obtaining your NTN (or during the same process), you must file an official registration request with FBR. This can be done:

• Online through IRIS (for individuals)

• Physically at RTO or TFC (for companies and partnerships)

Required Details

The registration application requires information such as:

• Nature of business

• Principal activity

• Business address

• Business bank account

• Ownership structure (for companies or partnerships)

FBR will verify the details and may visit your premises if needed.

Step 3: Submit Required Documents

Along with your registration form, you must attach relevant documents depending on your taxpayer type:

For Individuals

• CNIC

• Mobile SIM (registered in your name)

• Personal email address

• Bank certificate showing account in your name

• Tenancy agreement or property ownership document (if doing business)

• Latest utility bill (within last 3 months)

For AOPs (Partnerships)

• Partnership deed

• CNICs of all partners

• Letter authorizing one partner to handle registration

• Firm registration certificate (if applicable)

• Business bank certificate

• Utility bill and tenancy/ownership document

For Companies

• SECP incorporation certificate

• CNICs of directors

• Board resolution/authorization letter

• Company email

• Bank certificate in company’s name

• Tenancy or ownership proof

• Recent utility bill

FBR requires that all submitted documents be in original form for verification during physical visits.

Step 4: Obtain Taxpayer Identification Number (TIN)

Once your application is approved, the FBR issues you a Taxpayer Identification Number (TIN) — this could be your NTN in case of an individual or company, or a separate TIN depending on business structure and tax category.

The TIN is used for:

• Filing tax returns

• Appearing on the ATL

• Receiving FBR communications

• Claiming tax refunds

• Sales tax registration, if applicable

You can verify your TIN or NTN status anytime using FBR’s online taxpayer verification tool.

Step 5: File Annual Tax Returns

After registration, it is mandatory to file your annual tax return. A return includes:

• Income details from salary, business, rent, capital gains, etc.

• Deductible expenses

• Tax withheld or paid

• Declaration of assets, liabilities, and wealth

• Tax computation and payment, if any

Filing Deadlines

• Individuals & AOPs: By September 30 each year

• Companies: By December 31 (or within 6 months of year-end)

Filing is done through the IRIS portal, and it is necessary to maintain ATL status, which brings several tax benefits.

Benefits of FBR Tax Registration

• Appear on Active Taxpayer List (ATL)

• Pay reduced withholding tax rates on banking, vehicles, and property

• Become eligible for business tenders, loans, and government contracts

• Claim input tax and refunds

• Build financial credibility

• Legally operate a registered business or freelance setup

Key Notes for 2025

• Only individuals can register online. Companies and AOPs must visit the RTO or TFC

• Mobile SIM and email must be in the name of the applicant

• FBR may require in-person verification before issuing TIN

• New e-payment methods including mobile wallets and ADC are accepted for tax payments

Final Words

The process to register for tax in Pakistan through FBR is now easier than ever, especially for individuals who can register online. With growing digitization, the FBR has streamlined its operations through the IRIS platform, mobile verification, and integrated services.