PAN Registration process in Nepal is a mandatory legal requirement for individuals and businesses conducting financial and commercial activities within the country. The Permanent Account Number (PAN) is a unique identification number issued by the Inland Revenue Department (IRD) of Nepal under the Income Tax Act, 2058 (2002). Whether you are a salaried employee, a sole proprietor, a partnership firm, or a private limited company, PAN registration in Nepal is the first step toward tax compliance.
This article covers every aspect of the PAN registration process in Nepal, including eligibility, required documents, steps, fees, and legal provisions.
What is PAN in Nepal?
PAN stands for Permanent Account Number. In Nepal, the Inland Revenue Department (IRD) issues this nine-digit unique number to taxpayers for the purpose of tracking tax-related transactions and financial activities. The PAN card Nepal serves as a tax identification document used in all dealings with government bodies, financial institutions, and business entities.
Under Section 79 of the Income Tax Act, 2058, every person who is liable to pay income tax in Nepal must register for a Permanent Account Number. Similarly, the Value Added Tax Act, 2052 (1996) also mandates PAN registration as a prerequisite for VAT registration in Nepal.
The PAN number Nepal is used for:
- Filing income tax returns
- Conducting business transactions above a certain threshold
- Opening bank accounts for businesses
- Obtaining government contracts and tenders
- Registering for VAT
- Importing and exporting goods
Who Needs PAN Registration in Nepal?
PAN registration in Nepal applies to a wide range of individuals and entities. The following persons are required to obtain a PAN number Nepal:
- Individuals earning income above the taxable threshold
- Sole proprietorships operating any business
- Partnership firms registered under the Partnership Act, 2020 (1964)
- Private limited companies registered under the Companies Act, 2063 (2006)
- Public limited companies
- Non-profit organizations and NGOs/INGOs
- Cooperatives
- Foreign companies operating in Nepal
- Freelancers and consultants with taxable income
Even individuals who are not immediately liable for tax but wish to conduct formal financial transactions are encouraged to complete PAN card registration in Nepal.
Legal Basis for PAN Registration in Nepal
The legal framework governing PAN registration in Nepal comes from the following laws and regulations:
| Law / Regulation | Provision |
|---|---|
| Income Tax Act, 2058 (2002) | Section 79 mandates PAN registration for all taxpayers |
| Value Added Tax Act, 2052 (1996) | PAN is required before VAT registration |
| Companies Act, 2063 (2006) | Companies must obtain PAN after incorporation |
| Industrial Enterprises Act, 2076 (2020) | Registered industries must have a valid PAN |
| Finance Act (Nepal annual budget law) | Updates taxable thresholds and related provisions |
The Inland Revenue Department Nepal operates under the Ministry of Finance and administers all tax registration activities, including the issuance of PAN numbers. The official portal for PAN registration is the IRD Nepal website.
Types of PAN Registration in Nepal
PAN registration in Nepal is categorized based on the type of taxpayer:
1. Individual PAN Registration
This applies to natural persons including salaried employees, freelancers, and self-employed individuals. The individual must provide personal identification and proof of income source.
2. Business PAN Registration (Non-Individual)
This category includes companies, firms, cooperatives, NGOs, and other legal entities. The business must be legally registered before applying for a PAN number Nepal.
3. Foreign Individual or Entity PAN Registration
Foreign nationals working or operating businesses in Nepal must also obtain a PAN through the IRD Nepal. They need to submit passport copies and relevant work permits or business registration documents.
Documents Required for PAN Registration in Nepal
The documents required for PAN registration in Nepal vary depending on whether the applicant is an individual or a business entity.
For Individual PAN Registration:
- Citizenship certificate (both sides) or passport for foreign nationals
- Recent passport-size photograph (2 copies)
- Proof of permanent address (electricity bill, land ownership certificate, or similar)
- Source of income declaration or employment letter (if applicable)
- Bank account details (if available)
For Business/Company PAN Registration:
- Company registration certificate from the Office of the Company Registrar (OCR)
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Citizenship certificates of all directors and shareholders
- Passport-size photographs of all directors
- Proof of registered office address (rental agreement or land ownership document)
- Minutes of the first board meeting
- PAN cards of all directors (if already registered individually)
- Tax clearance certificate of directors (in some cases)
For Partnership Firm PAN Registration:
- Partnership deed registered at the relevant District Administration Office
- Citizenship certificates of all partners
- Proof of business address
Step-by-Step PAN Registration Process in Nepal
The PAN registration process in Nepal can be completed both online and offline. The IRD Nepal has introduced an online PAN registration system to simplify the process.
Online PAN Registration Process in Nepal
- Visit the IRD Nepal Official Website at https://www.ird.gov.np
- Click on the “Taxpayer Portal” or go directly to the taxpayer registration portal
- Select the type of taxpayer Individual or Non-Individual (Business)
- Fill in the online registration form with accurate personal or business details
- Upload scanned copies of required documents in the specified format (PDF or JPEG)
- Submit the application and receive an application reference number
- Visit the nearest Inland Revenue Office (IRO) for biometric verification and document submission
- Collect the PAN card after verification is complete (usually within 3–7 working days)
Offline PAN Registration Process in Nepal
- Obtain the PAN registration form from the nearest Inland Revenue Office (IRO) or Taxpayer Service Office (TSO)
- Fill in the form with all required details carefully
- Attach all supporting documents as per the checklist
- Submit the form and documents at the designated counter of the IRO
- Undergo biometric verification including fingerprint and photograph capture
- Receive the PAN number on the same day or within a few working days
- Collect the physical PAN card from the office
PAN Registration Fee in Nepal
The PAN registration process in Nepal does not require a registration fee for most individual applicants. However, there may be nominal administrative charges in certain cases. Below is a general fee structure:
| Type of Registration | Fee |
|---|---|
| Individual PAN Registration | Free (No fee) |
| Business/Company PAN Registration | Free (No fee) |
| PAN Card Replacement (lost/damaged) | NPR 100–200 (nominal charge) |
| PAN Certificate (certified copy) | Subject to Inland Revenue Department charges |
While the PAN registration fee in Nepal is generally free, businesses should account for any notarization or document preparation costs.
PAN Registration for Companies After Incorporation
After completing the company registration process at the Office of the Company Registrar (OCR) under the Companies Act, 2063, the company must obtain a PAN number from the IRD Nepal within 30 days of incorporation. Failure to register for PAN within the stipulated time may attract penalties under Section 117 of the Income Tax Act, 2058.
Once a company has a valid PAN number Nepal, it can proceed to register for Value Added Tax (VAT) if its annual transaction exceeds NPR 50 lakhs (as per the current VAT registration threshold). The VAT registration is also processed through the IRD Nepal portal.
PAN Registration for NGOs and Non-Profit Organizations
Non-governmental organizations (NGOs), cooperative societies, and other non-profit entities must also complete PAN registration in Nepal. After obtaining registration from the Social Welfare Council (SWC), District Administration Office, or relevant authority, the organization must register for PAN at the Inland Revenue Department.
Foreign-funded NGOs and INGOs must also comply with the Foreign Aid Policy of Nepal and coordinate with the Ministry of Finance and SWC for tax registration purposes.
How to Check PAN Number in Nepal
If you have already registered and need to verify your PAN number Nepal, you can:
- Visit the IRD Nepal taxpayer portal at https://taxpayerportal.ird.gov.np
- Use the PAN verification option available on the portal
- Contact the nearest Inland Revenue Office with your identity documents
Businesses can verify the PAN numbers of their vendors and clients through the same portal to ensure compliance in business transactions.
PAN Renewal and Update in Nepal
The PAN number in Nepal is a permanent number and does not require renewal. However, taxpayers must update their PAN details in the following circumstances:
- Change of business address
- Change of business name
- Addition or removal of directors/partners
- Change in business nature or activity
- Change in contact information or bank details
Updates to PAN registration details must be submitted to the relevant Inland Revenue Office with supporting documents as evidence of the change.
Penalties for Not Registering for PAN in Nepal
Under Section 117 of the Income Tax Act, 2058, individuals and entities that fail to register for a PAN number Nepal within the prescribed time frame are liable for penalties. The penalty for non-registration or late registration can range from NPR 2,000 to NPR 5,000 for individuals and higher amounts for businesses depending on the nature and duration of non-compliance.
Additionally, operating a business without a valid PAN card in Nepal can result in the suspension of business licenses, rejection of government contracts, and restrictions on banking transactions.
Conclusion
PAN registration in Nepal is a fundamental requirement for all taxpayers, businesses, and financial entities operating within the country. Governed by the Income Tax Act, 2058 and administered by the Inland Revenue Department Nepal, the PAN number serves as the primary tax identification tool. The process is straightforward, largely free of cost, and can be completed both online and offline. Taxpayers should ensure timely registration to avoid penalties and to maintain compliance with Nepal’s tax laws. For official guidance and forms, visit the IRD Nepal official website.
FAQs
1. What is PAN registration in Nepal?
PAN registration in Nepal is the process of obtaining a Permanent Account Number from the Inland Revenue Department (IRD) under the Income Tax Act, 2058. It is mandatory for taxpayers, businesses, and individuals with taxable income.
2. How long does PAN registration take in Nepal?
The PAN registration process in Nepal typically takes 1 to 7 working days after submitting the completed application and documents at the Inland Revenue Office or through the online portal.
3. Is PAN registration free in Nepal?
Yes, PAN registration in Nepal is generally free of charge for both individuals and businesses. There are no government fees for initial PAN registration at the IRD Nepal.
4. Can a foreign national get a PAN number in Nepal?
Yes, foreign nationals working or operating a business in Nepal can obtain a PAN number from the IRD Nepal by submitting their passport, visa, work permit, and other relevant documents at the Inland Revenue Office.
5. Is PAN mandatory for VAT registration in Nepal?
Yes, a valid PAN number is mandatory before applying for VAT registration in Nepal. Under the Value Added Tax Act, 2052, businesses must first complete PAN registration before registering for VAT.
6. What happens if I lose my PAN card in Nepal?
If you lose your PAN card in Nepal, you can apply for a duplicate PAN card at the nearest Inland Revenue Office by submitting your identity documents and paying a nominal replacement fee of approximately NPR 100–200.