How to Register with the Federal Board of Revenue (FBR) in Pakistan
The Federal Board of Revenue (FBR) is the primary tax collection authority in Pakistan, responsible for enforcing tax laws and regulations. Whether you are an individual, a business owner, or a company, registering with FBR is essential for compliance with the country’s tax system. This article provides a step-by-step guide on how to register with FBR, the necessary documents, and the benefits of registration.
Who Needs to Register with FBR?
FBR registration is mandatory for the following entities:
- Individuals who earn taxable income.
- Businesses operating in Pakistan, including sole proprietorships, partnerships, and companies.
- Companies registered with the Securities and Exchange Commission of Pakistan (SECP).
- Freelancers and digital service providers earning income from local or international clients.
- Non-resident entities conducting business in Pakistan.
Step-by-Step Guide to Registering with FBR
1. Obtaining a National Tax Number (NTN)
The first step in FBR registration is obtaining an NTN, which serves as a unique identifier for taxpayers. Here’s how you can do it:
For Individuals:
- Create an IRIS Account: Visit the FBR’s IRIS portal (https://iris.fbr.gov.pk) and register as a new user.
- Provide Personal Details: Enter your CNIC, email, phone number, and address.
- Submit Application: After verification via email and SMS, fill out the online registration form.
- Upload Required Documents: Attach scanned copies of your CNIC, proof of business (if applicable), and bank account details.
- Receive Your NTN: Once your application is processed, you will receive your NTN.
For Businesses:
- Register with SECP (For Companies Only): If you are registering a private limited company, first complete registration with the Securities and Exchange Commission of Pakistan (SECP).
- Gather Required Documents: These include the business address, CNICs of partners/directors, business bank account details, and partnership agreement (if applicable).
- Apply on IRIS: Log in to IRIS and submit your business registration application.
- Verification & Issuance of NTN: FBR may verify the details before issuing the NTN.
2. Sales Tax Registration (If Applicable)
If your business deals with taxable goods or services, you must register for Sales Tax:
- Log in to IRIS: Use your NTN to access the system.
- Submit Sales Tax Registration Application: Fill out the sales tax registration form.
- Provide Business Bank Account Details: A valid business bank account is necessary.
- Verification and Issuance: Once approved, FBR issues a Sales Tax Registration Number (STRN).
3. Filing Returns
After obtaining your NTN and STRN (if applicable), you must file tax returns regularly:
- Individuals & Salaried Persons: File annual income tax returns.
- Businesses: File monthly sales tax returns and annual income tax returns.
Documents Required for FBR Registration
- For Individuals:
- CNIC
- Mobile number registered in your name
- Email address
- Business proof (if applicable)
- Bank account details
- For Businesses:
- CNICs of owners/partners/directors
- Business address proof (utility bill, rental agreement)
- Business bank account details
- Partnership deed (for partnerships)
- SECP registration certificate (for companies)
Benefits of FBR Registration
- Legal Compliance: Avoid penalties and legal action.
- Business Credibility: Registered businesses can bid for government contracts and work with corporations.
- Tax Benefits: Eligible for tax credits, refunds, and incentives.
- Banking and Investment Opportunities: Easier access to loans and financial services.
- International Recognition: Required for international trade and freelance earnings.
Conclusion
Registering with the FBR is a crucial step for individuals and businesses to ensure compliance with tax laws. The process has been simplified through online registration via IRIS, making it easier for taxpayers to fulfill their obligations. By obtaining an NTN and filing regular tax returns, you can enjoy financial and legal benefits while contributing to the national economy.