A Permanent Account Number (PAN) is a unique 9-digit number issued by the Inland Revenue Department (IRD) of Nepal. It is mandatory for individuals and businesses engaging in financial transactions to have a PAN, according to Section 78 of the Income Tax Act, 2058. This article explains the PAN registration procedure, eligibility, and associated legal aspects in Nepal.

Governing Laws for PAN Registration in Nepal

• Income Tax Act, 2058: The law governs the requirement and use of PAN numbers in Nepal.
• Inland Revenue Department (IRD): The official authority responsible for issuing PAN numbers.

When is PAN Registration Required?

A PAN number is mandatory before engaging in any significant financial transactions, ensuring transparency in tax compliance and financial activities. Whether for opening a bank account, filing tax returns, or conducting business transactions, having a PAN number is crucial.

How to Apply for PAN Registration in Nepal

1. Online Registration Process:

To apply for a PAN number online:

• Visit the IRD official website.
• Navigate to the “e-services” section and click on ‘Registration (PAN, VAT, EXCISE)’.
• Fill out the required e-form and submit it.
• After submission, print the application form and submit it to the IRD.

2. Documents Required for PAN Registration:

• PAN application form.
• Citizenship certificate.
• Passport-size photo.
• Identity verification documents for foreigners, if applicable.

3. Online Application Portal:

You can also start the PAN registration process through Nepal’s Trade Information Portal.

Eligibility for PAN Registration

Both Nepali citizens and foreign nationals are eligible to obtain a PAN card. Foreign individuals or entities involved in financial or business transactions in Nepal must also apply for a PAN.

Circumstances Where PAN Can Be Dissolved

• Transaction cessation.
• Closure of business entity.
• Transfer or loss of ownership.
• Death of the owner (in case of private ownership).
• Errors in registration.

Voluntary Dissolution of PAN Number

An individual or entity can voluntarily dissolve their PAN by submitting an application to the IRD within 30 days of cessation of business or other specified reasons. Relevant income and tax details must be provided for the dissolution.

Fees for PAN Registration

There are no fees for obtaining a PAN for both Nepali citizens and foreign nationals.

Time Required for PAN Registration

Typically, it takes a few hours to obtain a PAN card after submission, unless there are delays due to missing documentation or availability of officers.

Disclaimer

The information provided here is for informational purposes by S & S Jurists, a leading corporate law firm in Nepal. It should not be construed as legal advice. For specific legal guidance, please consult a qualified legal professional.