This document provides an overview of income tax, sales tax, and the registration processes in Pakistan. It discusses: - The basics of Pakistan's taxation system, including direct taxes like income tax and indirect taxes like sales tax. - The requirements and process for obtaining an NTN (National Tax Number) from the Federal Board of Revenue, which is required for individuals and businesses whose income exceeds certain thresholds. - The requirements and process for obtaining an STRN (Sales Tax Registration Number), including who is required to register and how to fill out the online registration form. - A practical demonstration of registering for an NTN, STRN, preparing an electronic tax challan, and e-filing tax

1. Presentation of NTN,
STRN & Efiling TAX RETURNS

2.  TOPICS
 Brief Introduction of Taxation System in Pakistan
 Basics of Income Tax and NTN
 Registration process with Federal Board of Revenue
 Process of Sales Tax Registration Number
 Practical Demonstration
 NTN Registration
 STRN Registration
 How to prepare E- Challan?
 E-Filling of Tax Returns & Wealth Statement
 Question and Answer Session
TABLE OF CONTENTS

3. Brief Introduction of Taxation System in Pakistan
In Pakistan, Broadly two types of taxes
 Direct
 Income Tax
 Salaries
 Interest on securities
 Income from property
 Income from business
 Income from other Sources
 Indirect
 Sales Tax
 FED
 Province Tax

4.  Budget 2021-22
estimates total
tax collection
Rs 5,829 billion

5. Basics of Income Tax and NTN
BASIC UNDERSTANDING
 Taxable Income (Total Income-
Deductible Allowance)
 Head of Income
 Salary
 Income From property
 Income From Business
 Capital Gains
 Income From Other Sources
 Frequency of Filing
 Income Tax Return File on Yearly Basis.
 Sales Tax Return File on Monthly Basis.
 Resident Person
 Tax year
 Normal (Starting on 1st July and Ending on
30th June)
 Special (Other than above)
 Due Dates
 Individual & AOP (30th September of relevant
Year)
 Company (31st December in the relevant
year in case where financial year end
between January to June & 30th September
of following year where financial year end
between July to December.

6. REGISTRATION PROCESS WITH FEDERAL BOARD OF REVENUE
BEFORE DISCUSSING REGISTRATION PROCESS, FIRST DECIDE WHO IS REQUIRED TO BE REGISTERED ON INCOME TAX.
WHO IS REQUIRED TO BE REGISTERED?
 Every company
 AOP & Individual whose taxable income for the year
exceeds
 AOP & Business Individual: Above Rs 400,000/year
 Salaried person: Above Rs 600,000/year
 Has been charged to tax in respect of any of the two
preceding tax years
 Claims a loss carried forward under this Ordinance for a tax
year

7. REGISTRATION PROCESS WITH FEDERAL BOARD OF REVENUE
BEFORE DISCUSSING REGISTRATION PROCESS, FIRST DECIDE WHO IS REQUIRED TO BE REGISTERED ON INCOME TAX.
WHO IS REQUIRED TO BE REGISTERED?
 Owns immovable property with a land area:
 250 Sq Yd or more in Municipal/Cantt Area
 500 Sq Yd or more in Rating Area
 Flat having 2000 Sq feet or more in Rating Area
 Owns a motor vehicle having engine capacity above 1000
CC
 Has obtained National Tax Number

8. REGISTRATION PROCESS WITH FEDERAL BOARD OF REVENUE
BEFORE DISCUSSING REGISTRATION PROCESS, FIRST DECIDE WHO IS REQUIRED TO BE REGISTERED ON INCOME TAX.
 Holder of electricity connection (Commercial/Industrial)
and bill exceeding Rs 500,000 in a year
 Resident person registered with any chamber of
commerce and industry or any trade or business
association etc.
 Persons or classes of persons notified by the Board with
the approval of the Minister in charge.

9. REGISTRATION PROCESS WITH FEDERAL BOARD OF REVENUE
BEFORE DISCUSSING REGISTRATION PROCESS, FIRST DECIDE WHO IS REQUIRED TO BE REGISTERED ON INCOME TAX.
REQUIREMENTS BEFORE REGISTRATION
INDIVIDUALS
 CNIC / NICOP / Passport number
 Cell phone number in use
 Active e-mail address
 Nationality
 Residential address
 Accounting period

10. REGISTRATION PROCESS WITH FEDERAL BOARD OF REVENUE
BEFORE DISCUSSING REGISTRATION PROCESS, FIRST DECIDE WHO IS REQUIRED TO BE REGISTERED ON INCOME TAX.
REQUIREMENTS BEFORE REGISTRATION
INDIVIDUALS
 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

11. REQUIREMENTS BEFORE REGISTRATION
AOP & COMPANY
 Name of company or AOP
 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

12. REGISTRATION PROCESS WITH FEDERAL BOARD OF REVENUE
BEFORE DISCUSSING REGISTRATION PROCESS, FIRST DECIDE WHO IS REQUIRED TO BE REGISTERED ON INCOME TAX.
REQUIREMENTS BEFORE REGISTRATION
AOP & COMPANY
 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 %
 Email address of principal officer or authorized representative
of the company

13. BENEFITS OF BECOME FILER
 Persons appearing on
Active Taxpayer List
(ATL) have to bear
almost half of the
withholding tax as
compare to inactive
taxpayers

14. PROCESS OF SALES TAX REGISTRATION NUMBER
WHO IS REQUIRED TO BE REGISTERED?
 Every person engaged in making taxable supplies in Pakistan, including
zero-rated supplies, in the course or furtherance of any taxable activity
carried on by him, falling in any of the following categories, if not already
registered, is required to be registered under this Act, namely.
 Manufacturer who is not running a cottage industry:
 whose turnovers during the last 12 months from all supplies are not more
than 3 million rupees (Rs. 3,000,000/-); and/or
 have not industrial/commercial electricity or Gas connection; and/or
 are not located in residential area; and/or
 have a labor force of not more than ten (10) workers

15. PROCESS OF SALES TAX REGISTRATION NUMBER
WHO IS REQUIRED TO BE REGISTERED?
 A retailer is required to compulsory register in The Sales Tax Act, 1990:
 Operating as a unit of a national or international chain of stores; and/or
 operating in an air-conditioned shopping mall, plaza or center excluding
kiosks; and/or
 Whose cumulative electricity bill during the immediately preceding twelve
consecutive months exceeds Rs. 600,000/-; and/or
 A wholesaler-cum-retailer, engaged in bulk import and supply of consumer
goods on a wholesale basis to the retailers as well as on a retail basis to
the general body of consumers; and/or
 Whose shop in area measures on thousand (1,000) square feet or more

16. PROCESS OF SALES TAX REGISTRATION NUMBER
WHO IS REQUIRED TO BE REGISTERED?
 Importer an exporter who intends to obtain sales tax refund against his
zero-rated supplies
 Wholesaler, dealer or distributor; and
 Person who is required, under any other Federal law or Provincial law, to be
registered for the purpose of any duty

17. PROCESS OF SALES TAX REGISTRATION NUMBER
 Avoid Further Tax (i.e. 3% addition tax)
Benifits

18. SALES TAX REGISTRATION
 Step 1: NTN Registration (As already discuss)
 Step 2: Open IRIS Portal of FBR (FEDERAL BOARD OF REVENUE)
 Step 3: Login to IRIS Portal of FBR (FEDERAL BOARD OF REVENUE) by entering
login ID and Password
 Step 4: Open and Fill Form 14(1) (Form of Registration filed voluntarily through
simplified) (Sales Tax) and provide at least following information:
 Tax Period
 Information (Manufacture/ Non Manufacture)
 Bank Account Detail/Certificate
 Business Detail: Name, Acquisition Date, Capacity, Activity, and all branches
 GPS Tagged Photo graph of Business Premises
 Consumer number of Electricity/Gas meter along with pictures

19. PRACTICAL DEMONSTRATION
 NTN Registration
 STRN Registration
 How to prepare E- Challan?
 E-Filling of Tax Returns & Wealth Statementa
REGISTRATION PROCESS WITH FEDERAL
BOARD OF REVENUE

20. SAMPLE OF PSID

21. SAMPLE OF CRP

22. THANK YOU
FOR YOUR ATTENTION