Registeration For Income Tax

Registeration for Income tax

Paying taxes is a civic duty and an essential aspect of contributing to a country’s development. In Pakistan, it is mandatory for eligible individuals and businesses to register for income tax and file their returns annually. This blog post aims to guide you through the process of income tax registration in Pakistan, ensuring you fulfill your responsibilities and contribute to the nation’s progress.

Understanding Income Tax in Pakistan

Income tax in Pakistan is regulated by the Federal Board of Revenue (FBR), which is responsible for implementing tax laws, collecting revenues, and ensuring compliance. Individuals, businesses, and salaried persons falling under the taxable income bracket are required to register for income tax and file their returns annually.

Eligibility Criteria for Income Tax Registration

To be eligible for income tax registration in Pakistan, an individual or business must fulfill the following criteria:

Salaried individuals with an annual income exceeding PKR 600,000.

Self-employed individuals or businesses with an annual income exceeding PKR 400,000.

Owners of immovable property with a land area of 500 square yards or more.

Owners of a commercial property with a land area of 500 square feet or more.

Owners of a vehicle with an engine capacity of 1000cc or above.

Steps to Register for Income Tax

Create an Account on FBR’s Portal: Visit the FBR’s official website and create an account by providing your basic information, such as your CNIC number, mobile number, and email address.

Fill Out the Registration Form: Once your account is created, log in and access the IRIS portal. Here, you will need to fill out the 181(1) registration form, providing detailed information about your income sources, assets, liabilities, and expenses.

Submit the Required Documents: Attach the required documents, which may include a copy of your CNIC, utility bills, and proof of income. Ensure all documents are complete and accurate to avoid any delays in the registration process.

Receive Your NTN (National Tax Number): After submitting the registration form and required documents, you will receive your National Tax Number (NTN). This unique number is used to file your income tax returns and perform other tax-related activities.E-Enrollment for Income Tax Filing: Once you have received your NTN, you need to e-enroll for income tax filing. This can be done through the IRIS portal by selecting the ‘E-Enrollment for Registered Person’ option.File Your Income Tax Returns: After successfully enrolling, you can file your income tax returns annually through the IRIS portal. Ensure that you file your returns before the due date to avoid any penalties.

TAXPAYER REGISTRATION BASICS

An individual, a company and an association of persons (AOP) or foreign national shall be treated as registered, when they are e-enrolled on the Iris portal.
E-Enrollment with FBR provides you with a National Tax Number (NTN) or Registration Number and password.
In case of individuals, 13 digits Computerized National Identity Card (CNIC) will be used as NTN or Registration Number.
NTN or Registration Number for AOP and Company is the 7 digits NTN received after e-enrollment.
These credentials allow access to Iris portal, the online Income Tax system, which is only way through which online Income Tax Return can be filed.

REQUIREMENTS BEFORE REGISTRATION

ResidANt INDIVIDUAL NEEDS TO ENSURE THAT THE FOLLOWING INFORMATION IS AVAILABLE BEFORE STARTING E-ENROLLMENT.

Requirements of e-enrollment for an individual are as follows:

  • CNIC/NICOP/Passport number
  • Cell phone number in use
  • Active e-mail address
  • Nationality
  • Residential address
  • Accounting period
  • In case of business income
    • business name
    • business address
  • Principal business activity
  • Name and NTN of employer in case of salary income
  • Address of property in case of property income

PRINCIPAL OFFICER OF COMPANY AND AOP NEEDS TO ENSURE THAT THE FOLLOWING INFORMATION IS AVAILABLE BEFORE STARTING E-ENROLLMENT

FOLLOWING PARTICULARS ARE REQUIRED FOR REGISTRATION:

  • Name of company or AOP
  • Business name
  • Business address
  • Accounting period
  • Business phone number
  • E-mail address
  • Cell phone number of principal officer of the company or AOP
  • Principal business activity
  • Address of industrial establishment or principal place of business
  • Company type, like public limited, private limited, unit trust, trust, NGO, society, small company, modaraba or any other
  • Date of registration
  • Incorporation certificate by Securities and Exchange Commission of Pakistan (SECP) in case of company
  • Registration certificate and partnership deed in case of registered firm
  • Partnership deed in case firm is not registered
  • Trust deed in case of trust
  • Registration certificate in case of society
  • Name of representative with his CNIC or NTN
  • Following particulars of every director and major shareholder having 10% or more shares in case of company or partners in case of an AOP, namely:-
    • Name
    • CNIC/NTN/Passport and
    • Share %

REQUIREMENTS FOR REGISTRATION OF NON-RESIDENT COMPANY HAVING PERMANENT ESTABLISHMENT IN PAKISTAN SHALL FURNISH THE FOLLOWING PARTICULARS:

  • Name of company
  • Business address
  • Accounting period
  • Phone number of business
  • Principal business activity
  • Address of principal place of business
  • Registration number and date of the branch with the Securities and Exchange Commission of Pakistan (SECP)
  • Name and address of principal officer or authorized representative of the company
  • Authority letter for appointment of principal officer or authorized representative of the company
  • Cell phone number of principal officer or authorized representative of the company and
  • Email address of principal officer or authorized representative of the company

NON-RESIDENT COMPANY NOT HAVING PERMANENT ESTABLISHMENT IN PAKISTAN SHALL FURNISH THE FOLLOWING PARTICULARS:

  • Name of company
  • Business address in the foreign country
  • Name and nationality of directors or trustees of the company
  • Accounting period
  • Name and address of authorized representative of the company
  • Authority letter for appointment of authorized representative of the company
  • Cell phone number of authorized representative of the company
  • Email address of authorized representative of the company
  • Principal business activity and

Tax Registration or incorporation document from concerned regulatory authorities of the foreign country.