PAN Registration in Nepal

Introduction

PAN registration in Nepal is the mandatory process of obtaining a Permanent Account Number from the tax authority to identify individuals and entities for income tax, VAT, and other fiscal obligations. In Nepal, PAN is governed by the Income Tax Act, 2058 and administered by the Inland Revenue Department (IRD).

Table of Contents

• Governing Laws & Authority

• Who Can Apply? (Eligibility)

• Step-by-Step PAN Registration Process

• PAN Registration Methods Comparison

• Required Documents Checklist

• Costs, Compliance & Ongoing Obligations

• Timeline: How Long Does PAN Registration Take?

• Conclusion

• Disclaimer

Governing Laws & Authority

Applicable Laws

• Income Tax Act, 2058 (2002)

• Income Tax Rules, 2059

• VAT Act, 2052 (where applicable)

Regulatory Authority

• Inland Revenue Department (IRD), Nepal

  • Jurisdiction: Nationwide (Kathmandu headquarters with district offices)

Who Can Apply? (Eligibility)

The following persons and entities are eligible for PAN registration in Nepal:

• Individuals earning taxable income

• Sole proprietorships

• Partnership firms

• Private/Public limited companies

• NGOs/INGOs with taxable activities

• Foreign entities conducting business in Nepal

Step-by-Step PAN Registration Process

Phase 1: Preparation

• Determine applicant type (individual or entity)

• Collect required documents (see checklist below)

Phase 2: Application Submission

• Online Application via IRD portal or

• Physical filing at the nearest IRD office

Phase 3: Verification & Issuance

• Document verification by IRD officer

• PAN number issuance (same day or within a few days)

PAN Registration Methods Comparison

Required Documents Checklist

For Individuals

• Citizenship certificate (copy)

• Passport-size photographs

• Address details

For Businesses/Companies

• Company registration certificate

• MOA/AOA (for companies)

• Partnership deed (if applicable)

• Citizenship copies of owners/directors

• Office address proof

Costs, Compliance & Ongoing Obligations

• PAN registration fee: Free

• Annual tax filing: Mandatory once PAN is issued

• VAT registration: Required if turnover exceeds threshold

• Penalties: Non-compliance may result in fines under the Income Tax Act

Related Legal Note: While PAN registration concerns taxation, other Nepalese laws—such as the Domestic Violence (Offence and Punishment) Act, 2066—impose punishments including fines and imprisonment for unrelated civil/criminal conduct. Legal compliance is holistic; tax registration does not exempt other statutory duties.

Timeline: How Long Does PAN Registration Take?

• Individuals (online): Same day to 2 working days

• Businesses: 2–7 working days depending on verification

• With professional assistance: Often faster due to error-free filing

Conclusion

PAN registration in Nepal is a foundational legal requirement for earning, operating a business, and remaining tax-compliant. Errors or delays can lead to penalties and operational hurdles. Professional legal or tax assistance ensures accuracy, speed, and full compliance—especially for companies and foreign entities.

👉 Need help with PAN registration, VAT, or tax compliance in Nepal? Consult a qualified legal or tax professional for end-to-end support.

Disclaimer

This guide is for informational purposes only and does not constitute legal or tax advice. Laws and procedures may change. Always consult a qualified professional or the Inland Revenue Department for case-specific guidance.