NTN stands for National Tax Number, issued by Federal Board of Revenue to individuals and business in Pakistan for matters pertaining to taxes. For example, when a baby is born we assign the baby a name, same it is when an individual or business wants to register with FBR, FBR issues a name to that individual or business in shape of digits which is called National Tax Number. NTN number is unique for every registered person just like unique CNIC number. By the help of NTN, government can check the tax related history of individual and business and can also track the ongoing tax related activities and ensure the compliance of tax regulations.
13 digits unique NTN is issued to individual and 7 number unique digit is issued to businesses.
Purpose of NTN
Government of Pakistan requires individuals and businesses to get register with FBR and file he tax return. The main purpose of NTN is to increase the tax collection and ensure the tax compliance.
Filing of Tax Return: Taxpayer use their NTN number issued by FBR while submission of tax return for specific tax year. NTN number helps the government to track and identify the financial activities and tax liabilities of taxpayer.
Payment of Tax: When taxpayer make payments such as income tax, sales tax or any other tax to government, NTN number of that taxpayer is used to link that payments for accurate payment processing and updating taxpayer record.
Record Keeping: FBR maintains the database of taxpayers based on their NTN number. This database contains all financial information such as income, expense, assets, liabilities, tax history and any other relevant details required for tax purposes.
NTN Verification: for various financial transactions NTN used as a mean of verification. For example, when opening the bank account, individuals and businesses may be required to provide their NTN number for verification. Click here for NTN Verification by CNIC
Tax Compliance: By the help of NTN, government can easily monitor or track the financial activities of taxpayers. This helps to reduce the tax evasion and ensure that individuals and businesses are fulfilling their tax requirement.
How to obtain NTN:
Registration: obtaining NTN, individuals and businesses are required to register with Federal Board of Revenue. Registration process can be completed by online via FBR official website or by visiting the tax office. If you want to register with FBR click her for complete registration process.
Documentations required: during the registration process, applicants are required to provide the certain documents such as CNIC, proof of business ownership and bank account details.
Why to obtain NTN?
Obtaining an NTN number offers multiple advantages such as:
Legal Compliance: having NTN ensure compliance with tax rules and regulations, avoid individuals and businesses from legal actions.
Tax Filing: without NTN, tax return cannot be filled. So, having NTN enables taxpayer to fulfil their legal obligation by filling tax return.
Business Transactions: NTN facilitates business transactions by providing a recognized identification for financial dealings and contracts.
Tax rebates: an NTN may be required for availing the certain services and benefits offered by government of Pakistan.
Conclusion
In final words, NTN is issued by FBR to registered taxpayer. By having an NTN number and filing the tax return not only ensures legal compliance but also contributes to the growth and development of the Pakistan. Get yourself register with FBR by obtaining NTN and file your tax return and fulfil your tax obligations.