Getting a Permanent Account Number (PAN) used to mean standing in line at an Inland Revenue Office with a folder of photocopies. That is no longer the case. Nepal's Inland Revenue Department (IRD) now runs a fully digital registration system through the Taxpayer Portal and the government's Nagarik App, and once you have your PAN, paying tax is just as digital — a few clicks through ConnectIPS, eSewa, or Khalti settle your voucher instantly. This guide walks you through the entire digital PAN registration and payment process in Nepal, from your first OTP to your final tax payment receipt.
Whether you are a salaried employee registering your first Personal PAN, a founder registering a Business PAN for a newly incorporated company, or a taxpayer simply trying to pay tax online without visiting a bank, this article covers every step in plain language.
Table of Contents
- What Is a PAN and Why You Need One
- Types of PAN: Personal, Business, and D-PAN
- Documents Required for PAN Registration
- How to Register PAN Online via the IRD Taxpayer Portal
- How to Register PAN via the Nagarik App
- Business PAN Registration Process
- PAN Registration for Foreign Nationals
- Biometric Verification and Collecting Your PAN Card
- Digital PAN Payment Guide: How to Pay Tax Online
- Comparing Online Payment Methods
- Common Revenue Codes (Shirshak) Reference
- How to Check Your PAN Status or Search a PAN
- Common Mistakes and Troubleshooting
- Penalties for Non-Compliance
- Frequently Asked Questions
What Is a PAN and Why You Need One
A Permanent Account Number is a unique 9-digit taxpayer identification number issued by the Inland Revenue Department under Section 78 of the Income Tax Act 2058. It is the single identifier tied to every tax-related interaction you will ever have in Nepal, from opening a bank account to filing an income tax return to registering property. Once issued, a PAN is valid for your entire lifetime and never needs to be renewed.
You are required to hold a PAN if you run a business, earn employment income above the taxable threshold, buy or sell property, receive payments from platforms like YouTube or Google, or take part in any financial transaction that the Income Tax Act specifically flags as PAN-requiring. Without one, banks will not open certain accounts for you, your employer cannot process payroll correctly, and you cannot legally file a tax return.
Good to know: PAN registration in Nepal is completely free. There is no government fee for a personal or business PAN, and each person or entity may hold only one PAN for life.
Types of PAN: Personal, Business, and D-PAN
| PAN Type | Who It's For | Typical Use |
|---|---|---|
| Personal PAN (PPAN) | Individuals, salaried employees, freelancers, consultants | Employment income, freelance income, property transactions, bank KYC |
| Business PAN | Companies, partnerships, sole proprietorships, NGOs | Business income tax, VAT registration, government contracts |
| D-PAN (Withholding Agent) | Employers and entities that deduct tax at source | Depositing and reporting TDS on salaries, rent, contracts, and commissions |
Documents Required for PAN Registration
For Individuals (Personal PAN)
- Citizenship certificate (scanned copy, under 2 MB, JPEG format)
- A recent digital passport-size photograph
- An active mobile number for OTP verification
- National ID (NID) number, if you have one, to auto-populate your details
For Businesses (Business PAN)
- Company or firm registration certificate from the Office of the Company Registrar (OCR)
- Memorandum and Articles of Association (for private limited companies)
- Business address proof
- Estimated annual turnover and NSIC business activity code
- Personal PAN numbers of all directors or shareholders
How to Register PAN Online via the IRD Taxpayer Portal
This is the fastest route for most individuals, especially if your details are already linked to a National ID.
Step 1: Open the IRD website and click on "Taxpayer Portal."
Step 2: In the left-hand menu, expand "Registration (PAN, VAT, Excise)" and select "Application for PPAN Registration."
Step 3: Enter your mobile number and verify it using the OTP sent to your phone.
Step 4: Fill in the e-form. If your profile is linked to your National ID, most fields will auto-populate.
Step 5: Upload your citizenship certificate scan and a passport-size photo, then submit.
Step 6: Note your submission number, then visit your selected Inland Revenue Office for biometric verification to finalize the process.
With a National ID linked to your profile, this entire online portion typically takes 5 to 15 minutes. Without NID linking, expect closer to 20 to 30 minutes to fill the form manually.
How to Register PAN via the Nagarik App
The Nagarik App offers a mobile-first alternative that many individual taxpayers now find even more convenient than the web portal.
Step 1: Download the Nagarik App from the Google Play Store or Apple App Store.
Step 2: Register using your mobile number and verify with the OTP.
Step 3: Verify your identity using your citizenship number, National ID, voter ID, or driving licence.
Step 4: Navigate to Inland Revenue Services and select PAN Registration.
Step 5: Complete the form and submit. A physical visit for biometric verification is still generally required to activate a physical PAN card, though the PAN number itself is often generated digitally right away.
Business PAN Registration Process
Registering a Business PAN follows a similar online flow but requires additional corporate documentation.
Step 1: On the Taxpayer Portal, select "Business PAN" instead of Personal PAN.
Step 2: Enter your company registration number from the Office of the Company Registrar, your NSIC business activity code, and estimated turnover.
Step 3: Add director and shareholder details, including each person's individual PAN number.
Step 4: Upload your company registration certificate, Memorandum and Articles of Association, and business address proof.
Step 5: Submit, then send the authorized company representative for biometric verification at the IRD office.
Business PAN applications are typically processed within 1 to 3 working days after biometric verification of the authorized representative is complete. Registering your Business PAN is usually one of the very first steps to take right after company incorporation, since it unlocks banking, VAT registration, and government contract eligibility.
PAN Registration for Foreign Nationals
Foreign nationals working or investing in Nepal can register for PAN too, though the process differs slightly from that for Nepali citizens.
- Registration must go through the IRD web portal only; the Nagarik App requires a Nepali citizenship number or National ID.
- Select "Foreign" under nationality and enter your passport details instead of a citizenship number.
- You must hold a valid work permit, business visa, or diplomatic visa. Tourist visa holders are not eligible for PAN registration.
- Upload your passport and visa documentation along with any employer recommendation letter, where applicable.
- In-person biometric verification at an Inland Revenue Office remains mandatory. Expect processing to take roughly 3 to 5 working days.
Biometric Verification and Collecting Your PAN Card
No matter which channel you use to apply, Nepal's PAN system currently requires one in-person step: biometric verification at your selected Inland Revenue Office. Bring your original citizenship certificate (or passport for foreign nationals) along with your submission number. Once your biometrics are captured and your documents are matched against your online application, your PAN is activated and your physical card is issued, generally the same day for straightforward individual applications, and within 1 to 3 working days for most others.
Digital PAN Payment Guide: How to Pay Tax Online
Once you hold a PAN, filing and paying tax is handled through the same Taxpayer Portal ecosystem. Here is exactly how the online payment process works, from voucher creation to confirmation.
Step 1: Log in to the IRD Taxpayer Portal using your PAN and password.
Step 2: Select "Proceed to Payment" from the common payment platform, or generate a voucher directly from your filed tax return.
Step 3: Choose your tax type, select the correct Revenue Code (Shirshak), enter the amount, and select the applicable fiscal year.
Step 4: Click "Generate Transaction Code" (also called a Payment Registration Number or PRN), review the details, and confirm.
Step 5: Select your preferred payment processor — ConnectIPS, eSewa, or Khalti — and choose the linked bank account or wallet balance you want to pay from.
Step 6: Confirm the transaction. Your payment is verified and reflected in the IRD system, usually instantly or by your next portal login.
Step 7: Download and save your payment receipt and voucher number. You will need these for future filings, eTDS verification, or audits.
If you would rather not pay from a wallet or bank app, you can also print the generated voucher and pay in person over the counter at any IRD-approved commercial bank near your tax office.
Comparing Online Payment Methods
| Method | How It Works | Best For |
|---|---|---|
| ConnectIPS | Direct transfer from your linked bank account, including via scanning a NepalPay QR code | Taxpayers who prefer paying straight from a bank account |
| eSewa | Generate the voucher on the IRD portal, then complete payment inside the eSewa app under Government Payment → Inland Revenue Department | Individuals and freelancers already using eSewa |
| Khalti | Similar wallet-based flow to eSewa, using your saved Khalti balance or linked bank | Khalti wallet users |
| Bank Counter | Print the voucher and pay in person at an IRD-approved bank branch | Taxpayers without a digital wallet or online banking access |
Common Revenue Codes (Shirshak) Reference
When generating a payment voucher, you will be asked to select a Revenue Code that matches the type of tax you are paying. A few of the most commonly used codes for individual and payroll-related payments are listed below; your specific filing may require a different code depending on the tax head.
| Revenue Code | Purpose |
|---|---|
| 11111 | Remuneration income tax (higher salary slabs) |
| 11211 | Social security tax (1% salary slab) |
| 11131 | Service fee tax – contract, rent, or commission-related TDS |
If you are unsure which code applies to your situation, your tax office or a qualified tax consultant can confirm the correct Shirshak before you generate your voucher.
How to Check Your PAN Status or Search a PAN
After submitting an application, you can track its progress at any time. Go to "PAN Status" under the Registration menu on the Taxpayer Portal, enter your submission number along with the CAPTCHA, and the system will show whether your application is Pending, Approved, or Rejected.
To verify an existing PAN — useful for confirming a vendor, tenant, or business partner's tax status — use the public PAN search tool on the IRD website. Enter the 9-digit PAN number and answer a simple CAPTCHA to view the registered name, address, tax type, and current tax clearance status. This search is free and does not require you to be logged in, though it only accepts PAN numbers, not name-based searches.
Common Mistakes and Troubleshooting
- OTP not arriving: Double-check the mobile number entered, wait a few minutes, and request a resend before trying a different device or network.
- Document upload rejected: Make sure your scan is in JPEG format and under the 2 MB size limit; oversized or PDF uploads are a common cause of failed submissions.
- Wrong Revenue Code selected during payment: A voucher generated under the wrong Shirshak cannot always be corrected after payment, so confirm the code with your tax office before generating the transaction.
- Name mismatch between citizenship and National ID: If your name appears differently across documents, this must be resolved with an affidavit or correction at the identity office before the IRD portal will accept the application.
- Trying to register a second PAN: Each person or entity may legally hold only one PAN for life. If you have lost track of an existing PAN, use the PAN search or visit your IRD office to recover it rather than submitting a fresh application.
Penalties for Non-Compliance
PAN registration is not just an administrative formality. Under Section 117 of the Income Tax Act 2058, failing to obtain a PAN when legally required can result in a fine of up to NPR 1,00,000, disqualification from government contracts, and restrictions on banking and financial activity. Businesses operating without a valid PAN also risk being unable to file tax returns at all, which compounds penalties over time.
Frequently Asked Questions
Is PAN registration in Nepal really free?
Yes. The Inland Revenue Department does not charge any government fee for issuing a Personal or Business PAN, whether you apply online or in person.
Can the entire PAN registration process be completed online?
Most of it, yes. You can complete the application form and upload documents entirely online, but a one-time biometric verification visit to an Inland Revenue Office is still required to finalize and activate your PAN.
How long does online PAN registration take?
For individuals with a National ID linked to their profile, the online form itself takes about 5 to 15 minutes. Full processing, including biometric verification, typically takes 1 to 3 working days.
Can I pay my taxes without visiting a bank?
Yes. Once you generate a payment voucher on the Taxpayer Portal, you can pay instantly through ConnectIPS, eSewa, or Khalti without ever visiting a bank branch.
What happens if I lose my PAN card?
You do not need to reapply. Visit your Inland Revenue Office with your citizenship certificate to request a replacement, or use the PAN search tool to recover your PAN number in the meantime.
Do foreign nationals need a different process?
Foreign nationals apply through the IRD web portal only, using passport and visa details in place of a citizenship number, and must hold a valid work permit, business visa, or diplomatic visa rather than a tourist visa.
Final Thoughts
Nepal's shift to a digital PAN registration and payment system has removed most of the friction that once came with tax compliance. Between the IRD Taxpayer Portal, the Nagarik App, and payment integrations with ConnectIPS, eSewa, and Khalti, both individuals and businesses can now register, file, and pay entirely from a phone or laptop, with only a single short visit to an IRD office to complete biometric verification. Keep your documents ready, follow the steps above in order, and your PAN registration or tax payment should be one of the simplest government processes you complete this year.
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