NTN, IRIS and Tax Compliance Basics for Early-Stage Startups in Pakistan

Tax registration is one of the first things a client, bank or investor will ask about. This guide explains what an NTN is, how to get one for each type of business, and the habits that keep a young startup on the right side of FBR and the provincial tax authorities. It covers concepts and steps only. For what you owe, speak to a qualified tax adviser.

This is general information, not legal or tax advice.

Key terms in plain English

• NTN (National Tax Number): your identity in FBR’s system. For individuals, FBR uses your 13-digit CNIC as the NTN. Associations of persons (AOPs, such as partnership firms) and companies receive a 7-digit NTN after e-enrolment.
• IRIS: FBR’s online portal. FBR describes it as the only way to file an income tax return online.
• Tax year: FBR defines it as twelve months ending on 30 June. Tax year 2027, for example, ends on 30 June 2027.
• Return: your annual statement of income, filed in IRIS.
• Active Taxpayer List (ATL): FBR’s central record of online income tax return filers for the previous tax year.
• Withholding tax: tax deducted at source on certain payments, for example by a bank, a client, or by you as an employer.
• Sales tax on services: largely collected by provincial authorities rather than FBR. More on this below.

Step 1: Register for income tax

As an individual or sole proprietor

FBR lets individuals register online through IRIS. Its registration page lists what you need:

• A mobile phone with a SIM registered in your own name.
• A personal email address.
• A scanned bank account maintenance certificate in your name.
• If you run a business from premises: proof of tenancy or ownership, and a paid utility bill for the premises from the last three months.

Your CNIC becomes your NTN, and e-enrolment gives you a password for IRIS. You can also register in person at a facilitation counter at any Tax House, with the originals and your CNIC.

As a partnership firm (AOP)

FBR’s page says AOPs register in person. One partner visits a facilitation counter with:

• The partnership deed and the Registrar of Firms certificate.
• CNICs of all partners.
• An original authorisation letter on the firm’s letterhead, signed by all partners.
• A SIM not already registered with FBR, an email address for the firm and a bank certificate for the firm’s account.
• Premises documents, if the firm has a place of business.

As a company

When you incorporate, SECP forwards your incorporation data to FBR, which issues the NTN if the information is complete and accurate. FBR’s page also describes an in-person route: the company’s principal officer brings the incorporation certificate, directors’ CNICs, a letter signed by all directors authorising the principal officer, a SIM not already registered with FBR, a company email address, a company bank certificate and premises documents.

Use a dedicated SIM and email address for the business, not a founder’s personal ones. People leave; the tax login should stay with the company.

Step 2: Check provincial sales tax on services

If you sell services such as software development, marketing or consulting, you may need to register with a provincial revenue authority.

In Punjab, the Punjab Revenue Authority (PRA) rules say every person providing taxable services must register. A business providing services in several provinces, including Punjab, needs a separate Punjab registration for its Punjab services. The rules also say persons already registered with FBR are registered automatically, with a “P” prefix added to their NTN.

Sindh, Khyber Pakhtunkhwa and Balochistan have their own authorities: the Sindh Revenue Board, the Khyber Pakhtunkhwa Revenue Authority and the Balochistan Revenue Authority. Which services are taxable, the rates and the return dates differ by province. Check with the authority where you provide services, and ask your adviser how your services to foreign clients are treated.

If you sell goods, for example as a manufacturer or importer, federal sales tax rules administered by FBR may apply instead. That is a separate registration.

Step 3: File on time and stay on the ATL

As of 2026, FBR’s due-dates page lists these normal deadlines for income tax returns:

• Individuals and AOPs: on or before 30 September.
• Companies: on or before 31 December.
• Companies with a special tax year: on or before 30 September.

FBR sometimes extends dates, and rules can change with each Finance Act, so check the official page every year.

FBR publishes the ATL on 1 March each year and updates it every Monday. According to FBR, being on the list brings lower withholding rates on items such as bank profit and cash withdrawals, vehicle registration and property transactions, and lets you claim back tax that was over-deducted. For a startup, it also shows clients and banks that you file.

Step 4: Build simple compliance habits

You do not need an expensive system on day one. You need consistent records.

• Keep business and personal money in separate bank accounts.
• Issue a numbered invoice for every sale, and show sales tax separately where it applies.
• Save every bill, receipt and contract in one shared folder, organised by month.
• Track tax that clients and banks deduct from your payments, and keep the certificates. You may be able to adjust this tax in your return.
• If you hire staff, ask your adviser about deducting and depositing tax on salaries.
• Reconcile your bank statements with your books every month, not once a year.
• Keep one calendar with FBR and provincial filing and payment dates.

Common mistakes to avoid

• Registering the business with a founder’s personal SIM and email, then losing access when that person leaves.
• Treating sales tax collected from customers as revenue. You hold that money for the tax authority.
• Assuming a loss-making startup has nothing to file. Ask your adviser what your entity must file, even in a year with no profit.
• Mixing personal spending into the business account.
• Ignoring notices in IRIS. Log in regularly and respond within the time given.

Next steps checklist

• Decide your legal structure first, because registration differs for individuals, firms and companies.
• Get a dedicated SIM, email address and bank account for the business.
• Complete FBR registration: IRIS for individuals, a facilitation counter for firms, and SECP’s data transfer or a counter for companies.
• Check whether your services are taxable in your province and register if required.
• Set up a monthly bookkeeping routine.
• Add return due dates to your calendar and confirm them on FBR’s site each year.
• Find a tax adviser before your first return, not after your first notice.

Sources and further reading

• FBR: Register for income tax (NTN and CNIC)
• FBR: Registration procedure for individuals, AOPs and companies
• FBR: Income tax due dates (tax year definition)
• FBR: Income tax due dates by taxpayer type
• FBR: Active Taxpayer List (ATL)
• FBR: Benefits of being on the ATL
• SECP: FAQs on incorporation (NTN issued via FBR)
• Punjab Revenue Authority: Registration and de-registration rules