If you earn an income in Pakistan, own property or a vehicle, or engage in any business activity, then obtaining a National Tax Number (NTN) is a legal requirement. The NTN is issued by the Federal Board of Revenue (FBR) after you register and enroll in e-enrollment.
NTN is an essential document for individuals, NGOs, government entities, corporate entities, and Associations of Persons. It helps the government keep track of the taxpayer’s financial activities and ensures they fulfill their tax liabilities. Moreover, it is necessary to meet the criteria of certain business ventures such as tendering for government projects or opening a bank account.
Once you have an NTN, you are obligated to file an annual tax return for income and asset statements. Failure to do so can result in penalties, default surcharge, or even legal action against the taxpayer. Therefore, it is important to fulfill your tax obligations and file returns on time to avoid any consequences.
In case you no longer require an NTN, you cannot simply close it. The closure of NTN is only allowed in two situations; in case of death or permanently leaving the country. You must file an application under section 120 to the Commissioner of the relevant Regional Tax Office (RTO) for the closure of NTN. In case of death, a death certificate must be attached, and in case of leaving the country, relevant documentation must be submitted.
If you fail to ask for the closure of your NTN, you will continue to receive notices of compliance, and default surcharge will also be added to your name. Therefore, it is important to follow the proper procedures and close your NTN if you no longer require it.
In conclusion, having an NTN is mandatory for every person earning an income in Pakistan, owning property, or a vehicle. It is a legal obligation and necessary to meet the criteria of certain business ventures. It is important to comply with the regulations and file annual tax returns to fulfill your liability. If you no longer require an NTN, follow the proper procedures to close it to avoid any consequences.