Introduction

A Permanent Account Number (PAN) is a fundamental tax identification requirement in Nepal, essential for both individuals and businesses engaging in financial activities. Issued by the Inland Revenue Department (IRD), PAN serves as a unique identity for taxpayers and plays a crucial role in ensuring tax compliance, transparency, and lawful financial operations.
This comprehensive guide explains the legal framework, eligibility, registration process, required documents, and benefits of PAN registration in Nepal, making it useful for Nepali citizens, businesses, and foreign nationals.

Legal Framework Governing PAN in Nepal

The concept of PAN in Nepal is governed primarily by the Income Tax Act 2058, which mandates the issuance of a unique identification number for taxpayers. The law empowers authorities to require individuals and entities to mention their PAN in financial documents, tax returns, and official transactions.

What is a PAN Card?

A PAN is a unique 9-digit identification number assigned to taxpayers in Nepal. It acts as an official financial identity and is required for:

• Filing income tax returns
• Opening bank accounts
• Conducting high-value transactions
• Applying for loans and financial services

There are two primary types of PAN in Nepal:

• Personal PAN – for individuals
• Business PAN – for companies and legal entities

Who Needs to Register for PAN in Nepal?

PAN registration is mandatory for a wide range of individuals and entities, including:

• Salaried employees and freelancers
• Business owners (sole proprietors, partners, directors)
• Companies, NGOs, and INGOs
• Individuals involved in high-value transactions (property, vehicles)
• Foreign investors and expatriates
• Individuals opening certain types of bank accounts

In practice, PAN has become an essential requirement for almost all formal financial activities in Nepal.

Eligibility for PAN Registration

Any taxpayer engaged in financial or taxable activities in Nepal is eligible, including:

• Nepali citizens earning income
• Businesses operating in Nepal
• Non-Resident Nepalis (NRNs)
• Foreign nationals working, investing, or owning property in Nepal

Step-by-Step PAN Registration Process in Nepal

The PAN registration process in Nepal is straightforward and can be completed online:
Step 1: Access IRD Taxpayer Portal
Visit the official IRD website and navigate to the Taxpayer Portal. Select the option for “Registration (PAN, VAT, EXCISE).”
Step 2: Complete the Application Form
Fill in the required details such as:

• Full name and personal information
• Citizenship or passport details
• Address and contact information
• Employment or business details

Choose the appropriate category: Personal PAN or Business PAN.
Step 3: Upload Required Documents
Applicants must upload scanned copies of supporting documents, including identity proof and photographs.
Step 4: Submit Application and Print Acknowledgment
After submission, a unique submission number is generated. Applicants should print the acknowledgment slip.
Step 5: Verification at Inland Revenue Office
Visit the designated IRD office with original documents for verification.
Step 6: PAN Card Issuance
Once verification is complete, the PAN card is issued-usually within one working day for individuals and 1–2 days for businesses.

PAN Registration via Nagarik App

PAN registration is also available through the Nagarik App, making the process even more convenient.
Steps include:

• Download and install the app
• Register using your mobile number
• Verify identity using citizenship details
• Select “PAN Registration”
• Upload photo and required information
• Submit application

An e-copy of PAN is often available shortly after submission.

Documents Required for PAN Registration

For Nepali Individuals:

• Citizenship certificate
• Passport-sized photograph
• Completed application form

For Businesses:

• Company Registration Certificate
• Memorandum and Articles of Association
• PAN details of directors/partners
• Proof of business address

For Foreign Nationals:

• Passport copy
• Valid visa
• Work permit (if applicable)
• Proof of address in Nepal
• Employer or sponsor documents

PAN Registration for Foreign Nationals in Nepal

Foreign nationals engaged in economic activities in Nepal are legally required to obtain PAN. This includes:

• Foreign investors
• Expatriate employees
• Freelancers working with Nepali clients
• Foreign-owned or joint venture companies

The process is similar to that of Nepali citizens but requires additional verification and documentation.
Cost and Processing Time

• Registration Fee: Free of cost
• Individual PAN: Usually issued within 1 working day
• Business PAN: 1–2 working days
• Foreign applicants: 1–2 days (subject to verification)

Additional costs may arise if professional or legal assistance is used.

Importance and Benefits of PAN in Nepal

Obtaining a PAN is not just a legal requirement- it offers several practical advantages:

1. Tax Compliance

Ensures compliance with Nepalese tax laws and avoids penalties.

2. Financial Transactions

Required for banking, property transactions, and large financial dealings.

3. Loan and Credit Access

Financial institutions require PAN for loan approvals.

4. Legal Recognition

Provides official recognition for individuals and businesses.

5. Transparency and Accountability

Helps maintain transparent financial records and reduces tax evasion risks.

Important Considerations

• Ensure all submitted details are accurate to avoid rejection
• Documents must be valid and up-to-date
• Foreign applicants may require additional verification
• Business PAN applications require complete company documentation

Conclusion

PAN registration in Nepal is a simple, free, and essential process for individuals and businesses. Governed by the Income Tax Act 2058, PAN serves as the backbone of tax identification and financial compliance in Nepal.
With the availability of online registration and mobile applications, obtaining a PAN has become faster and more accessible than ever. Whether you are an individual, entrepreneur, or foreign investor, securing a PAN is a crucial step toward lawful and efficient financial operations in Nepal.