PAN in Nepal Explained: Personal vs Business PAN

What Is a PAN in Nepal?

PAN, short for Permanent Account Number, is the unique 9-digit tax identification number that the Inland Revenue Department (IRD) issues to each taxpayer in Nepal. The IRD, the tax authority under the Ministry of Finance, links every income-tax record of that taxpayer to this one number.

Under the Income Tax Act 2058, the PAN works as the single taxpayer identifier for all income-tax filing. Individuals, firms and companies quote it on each income-tax return, which reaches the IRD within three months of the end of the income year.

A PAN card in Nepal is the PAN certificate that the IRD issues at registration. The certificate carries the number, so the same PAN serves as the holder's tax ID, taxpayer ID and tax identification number in Nepal.

What Is the Difference Between Personal PAN and Business PAN?

A personal PAN identifies an individual taxpayer, while a business PAN identifies a business entity such as a company, partnership firm or NGO. The IRD issues both as 9-digit numbers, but each type follows its own registration form and document set.

The table compares personal PAN and business PAN on 5 attributes from the IRD registration forms.

A sole proprietorship follows a middle route: the IRD registers it as business type Individual, sub-type Proprietorship, on the owner's identity. A business PAN, or company PAN, belongs to the entity. It stays separate from the personal PAN of each owner or director.

Who Needs a PAN in Nepal?

A PAN is mandatory in Nepal for 7 groups of taxpayers, from salaried employees and freelancers to companies, NGOs and foreign investors. According to the IRD, every person who earns assessable income or withholds advance tax on payments obtains a PAN.

The PAN rule reaches each of the 7 groups as follows:

• Employees on a salary: employment income is assessable income, and each resident employer withholds tax from salary payments.
• Freelancers: professional income is assessable income, and the freelancer registers with the tax office for the place of residence or work.
• Businesses: a sole proprietorship or partnership firm registers for a business PAN on the IRD form for its type.
• Companies: a company obtains its PAN from the Inland Revenue Office before it starts business, after the Office of the Company Registrar (OCR) incorporates it.
• NGOs and INGOs: an NGO, charitable body or cooperative registers on the IRD's NGO/Charitable/Cooperative form.
• Investors from abroad: a foreign individual proves identity with a passport or embassy ID, and a foreign-invested company registers like any other company.
• Parties to business transactions: a bank, an employer or a buyer records the PAN of the person it pays or serves, such as when opening a business account or paying a supplier.

The holder type in each group decides the form: individuals take a personal PAN, and entities take a business PAN.

How Do You Get a PAN in Nepal?

To get a PAN in Nepal, an applicant files the online form on the IRD taxpayer portal and signs the printed copy at the tax office. The documents upload with the online form. An individual applying for a personal PAN has the Nagarik App as a second route.

PAN card registration in Nepal runs online in 3 steps, and the same steps apply to a personal and a business PAN:

1. Step 1: Access the IRD taxpayer portal and complete the registration form. On ird.gov.np, the applicant opens the Taxpayer Portal, selects Registration for (PAN, VAT, EXCISE) and then Application for Registration. The applicant creates a username and password, adds a phone number and email, and ticks Income Tax, VAT or both.
2. Step 2: File the PAN e-form and upload documents. The e-form takes the name in Nepali and English, the date of birth, the address and any business details. A scanned identity document and a passport-size photo upload with it, and Submit returns a submission number.
3. Step 3: Submit the printed form to the local IRD office and collect the PAN. The applicant prints and signs the form and hands it to the officer at the Inland Revenue Office (IRO) or Taxpayer Service Office (TSO). The officer verifies the file, and the IRD issues the PAN certificate.

The local office is the IRO or TSO for the applicant's place of residence, business or employment. An individual can apply for a PAN card online in Nepal through the Nagarik App, the government's citizen-service app. Every business PAN follows the portal route.

What Documents Are Required for a PAN?

The documents required for a personal PAN are up to 4, led by the citizenship certificate. A business PAN requires 5 items, led by the registration certificate. Both sets go in with the online form on the taxpayer portal, as typed details or scanned copies.

According to the IRD, an individual submits these 4 documents for a personal PAN, the last 2 only for a profession or business:

A business PAN draws on 5 items from the entity's own file:

The managing director or chief executive uploads an identity document with the entity form. The IRD officer records biometric details at the office when the file lacks current ones.

Is There a Fee for PAN Registration?

No, PAN card registration in Nepal carries no government fee at the Inland Revenue Department. The IRD's published online steps for a personal PAN and a business PAN contain no payment stage, from the portal form to the signed printout.

A free PAN means an applicant pays the IRD nothing for the number or the PAN certificate. A professional firm that prepares the application on a taxpayer's behalf sets its own service fee, separate from the IRD.

What Is the Difference Between PAN and VAT?

PAN is the base tax ID for every taxpayer, while VAT registration is a separate registration that a business adds above the VAT threshold. The IRD handles both, and one taxpayer portal application covers Income Tax, VAT or both.

The PAN vs VAT difference in Nepal runs across 5 attributes, compared in the table.

Every VAT-registered business holds a PAN, but a PAN holder stays outside VAT until it crosses the threshold or trades in a VAT-mandatory sector. A PAN holder that crosses the VAT threshold adopts the VAT bill and 13% rate covered in VAT in Nepal explained.

How Do You Verify a PAN Number in Nepal?

To verify a PAN number in Nepal, enter the 9-digit number in the IRD website's PAN search and check the returned taxpayer record. The search confirms whether the IRD holds a valid registration under that number.

A PAN card check in Nepal takes 3 steps on ird.gov.np:

1. Step 1: Open PAN नम्बर खोजी (PAN number search) on the IRD website.
2. Step 2: Enter the permanent account number (स्थायी लेखा नम्बर) and press खोज्नुहोस् (Search).
3. Step 3: Compare the result with the name on the PAN certificate or bill.

PAN verification helps a buyer or employer record the correct tax ID of a supplier or staff member in its books. Businesses that confirm a supplier's PAN or VAT status before payment run the same lookup through the VAT number check tool.

Frequently Asked Questions