Guidelines for Issuance of FTN to Tax Free Entities

Guidelines for Issuance of FTN to Tax Free Entities

Guidelines for Issuance of FTN to Tax Free Entities: Following are the SOP regarding issuance of Tax-Free Numbers (FTN) [NTN for Tax Free Entities]

  1. FTN will be allotted to Embassies and Federal/Provincial Ministries.
  2. The subordinate offices/entities of authorities should be allowed FTNs, when either such entities submit NOC from parent department or a verification letter from AGPR/AG(Provinces) or their district A/C offices, to facilitate issuance of FTNs at RTO level.
  3. RTOs, on their own, may issue trial FTNs to subordinate entities of Ministries/Departments for filing of withholding statements only. For the sake of permanent FTN the entity shall lave to provide the following information/documents:
  • Parent Department/Ministry’s name & FTN
  • Name of applicant/sub entity of Department/Ministry;
  • Cost Centre/DDO Code verifiable from Government Budget Books/District A/C offices/DGPR/AGPR/ AG (Provincial) offices;
  • Office telephone No. & cell number
  • e-mail;
  • Any other information Which the respective RTO may deem necessary for issuance of FTNs.

After the issuance of permanent FTN the trial FTNs would automatically stand withdrawn.

  1. RTOs shall intimate the issuance of FTN within a week to sub-entities of Ministries/Departments, to the parent ministry/department and also District /DGPR/AGPR/AG (Provincial offices)/District A/C offices concerned.
  2. Private entities exempt under Second Schedule to the Income Tax Ordinance, 2001 will be issued a regular NTN and these entities will avail exemption subject to qualification as prescribed under the Second Schedule.

After the issuance of FTNs to the sub-ordinate office(s), the jurisdiction for monitoring of the Withholding Taxes over such entities shall be assigned to the respective field offices, where the entity is located.

FTNs will be issued by the concerned Commissioner with the administrative approval of CCIR, concerned.

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