A Permanent Account Number, or PAN, is the foundation of nearly every formal financial interaction in Nepal, from opening a bank account to registering a business to filing your annual tax return. Issued under Section 78 of the Income Tax Act, 2058, this 9-digit number is free to obtain, permanent once issued, and increasingly required for everyday transactions that go well beyond tax filing itself. Here's exactly how to get one, whether you're an individual, a business, or a non-resident Nepali.
Who Needs a PAN?
PAN registration applies broadly across several categories:
- Individuals: Anyone earning taxable income in Nepal, whether through employment, business, freelancing, or investment income, is generally required to register for a PAN, since it is the identifier used for all tax filing and withholding purposes.
- Businesses: All formal business structures, including sole proprietorships, partnerships, private limited companies, public companies, and NGOs, must register for a business PAN before commencing formal operations, opening a business bank account, or issuing invoices.
- Non-Resident Nepalis (NRNs): NRNs engaging in taxable activities in Nepal, such as owning property, earning rental income, or holding investments, are generally required to register for a PAN using their passport and applicable visa or NRN identity documentation in place of a domestic citizenship certificate.
- Foreign nationals and entities: Foreign individuals working in Nepal, and foreign entities operating through a branch or project office, also require a PAN, using passport and work/business visa documentation, along with any required regulatory approvals for the entity.
Documents Required
The specific document set depends on whether you're registering as an individual or a business:
- Individual PAN: Citizenship certificate (both sides, for Nepali citizens) or passport with a valid visa (for foreign nationals), a recent passport-size photograph, address proof (such as a utility bill or ward recommendation letter), and an active mobile number for OTP verification.
- Business PAN: Business or company registration certificate, Memorandum and Articles of Association (for private/public limited companies) or partnership deed (for partnerships), citizenship certificates of all proprietors, partners, or directors, and office address proof.
If you have a National ID (NID) linked to your mobile number, the online form can auto-populate several personal details directly from the NID database, significantly reducing form-filling time.
Online vs. In-Person Registration at IRD
PAN registration in Nepal now follows a hybrid model:
- Online application: Visit the IRD Taxpayer Portal at taxpayerportal.ird.gov.np (or the equivalent registration section via ird.gov.np), select "New Taxpayer Registration," choose your taxpayer type (individual, proprietorship, partnership, or company), fill out the form (faster if NID-linked), upload the required documents, and submit. The same registration flow is also available through the official Nagarik App.
- Biometric verification (in-person): After the online submission, a final biometric verification step at your local Inland Revenue Office is still generally required to complete the registration and finalize issuance of the permanent PAN.
In other words, the process is largely digital, but not entirely paperless; plan for one in-person visit to complete biometric verification after your online application is submitted.
Processing Time
PAN registration is free of charge, with no government fee for either the online submission or the in-person biometric step. Once the online form and biometric verification are complete, individual PAN numbers are typically issued within 1 to 3 working days, often communicated by SMS. Business PAN registration, particularly where additional document verification is needed for companies or partnerships, generally follows a similar 1-to-3-working-day timeline after biometric verification of the authorized representative is completed.
Linking PAN to taxpayerportal.ird.gov.np
Once your PAN is issued, registering it on the Taxpayer Portal at taxpayerportal.ird.gov.np gives you ongoing access to your account ledger, e-filing tools, and downloadable PAN certificate. To set this up:
- Visit taxpayerportal.ird.gov.np and complete the taxpayer login setup using your PAN and registered mobile number.
- Verify via OTP to activate your portal access.
- Once active, you can download a signed PAN certificate directly from the "Taxpayer Profile" section at any time, which is accepted by banks and employers in place of a physical PAN card, useful if the physical card is lost or delayed.
- The same certificate is also accessible through the Nagarik App, under Services → Inland Revenue Department → My PAN.
Frequently Asked Question
Is PAN mandatory for freelancers in Nepal?
Yes. Freelancers earning income, whether from Nepali clients or from abroad, are generally required to register for a PAN, since PAN is the identifier used for filing tax returns and, where applicable, benefiting from the specific withholding treatment available to freelancers receiving foreign currency income. Operating without a PAN when legally required to have one carries real consequences, including fines under Section 117 of the Income Tax Act, potential penalties for concealment of income, and higher withholding rates applied by banks on certain payments; beyond the legal risk, most Nepali banks also require a PAN to open anything beyond a limited, restricted savings account, making PAN registration a practical necessity for freelancers well before any tax filing obligation comes into play.
Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. Registration procedures, required documents, and processing times can change; please consult an ICAN-registered Chartered Accountant or the Inland Revenue Department directly for advice specific to your registration.
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