What are NTN and STN in Pakistan: Differences, Benefits, and How to Obtain Them
This article by ahsan karim advocate high court is all about 2 taxation related terms in Pakistan i.e NTN and STN. I am going to explain both these terms in easy language just for you on this page along with there differences, significance and procedure for getting them. Lets start exploring these terms;
NTN & STN in Pakistan: What They Are, Differences, Benefits & How to Get Them
Taxes are an important part of any economy. In Pakistan, the Federal Board of Revenue (FBR) handles tax collection. Two key tax identifiers are National Tax Number (NTN) and Sales Tax Number (STN).
Many people don’t understand the difference. Some confuse NTN with being a “filer”. This article explains NTN, STN, their differences, benefits & how to get them.
What is NTN (National Tax Number)?
NTN is a unique number given by FBR to individuals & businesses. It is used for income tax purposes.
If you earn taxable income, you need an NTN. This applies to salaried persons, business owners, freelancers, property dealers, importers, exporters & professionals.
Just having an NTN doesn’t make you a filer. To be a filer, you must submit your tax returns every year.
What is STN (Sales Tax Number)?
STN is given to businesses that sell taxable goods & services. It is required for sales tax registration with FBR.
If you run a retail, wholesale, manufacturing, or service business, you may need an STN. With an STN, a business charges & collects sales tax from customers. Then it submits that tax to the government.
Key Differences Between NTN & STN
NTN is for income tax while STN is for sales tax.
NTN applies to both **individuals & businesses**. STN is only for businesses selling taxable goods & services.
NTN holders must file income tax returns. STN holders must file monthly sales tax returns.
A person with an NTN is a taxpayer. A business with an STN is a sales tax collector.
NTN can be checked on the FBR taxpayer portal. STN is verified on the FBR sales tax portal.
Benefits of Having NTN & STN
Benefits of NTN
NTN is legally required if you earn taxable income. Without it, you can face fines from FBR.
It allows you to become a filer. Filers pay lower taxes on property, vehicles & bank transactions.
NTN is needed for buying property, cars, opening business accounts & applying for government contracts.
Benefits of STN
STN lets businesses legally sell taxable goods & services. Without it, FBR can penalize you.
It allows businesses to claim tax refunds on purchases. This reduces costs & increases profits.
With STN, businesses get more customers. Many companies & government agencies only work with registered businesses.
How to Get an NTN in Pakistan?
First, go to the FBR IRIS portal (https://iris.fbr.gov.pk). Click on “Registration for Unregistered Person.”
Enter your CNIC, address, phone number & email. If applying for a business, enter your Company Registration Number.
Attach required documents. Individuals need a CNIC copy, salary slip (if salaried), & a utility bill.
Businesses need a **registration certificate, utility bill & rental agreement (if applicable).
Submit your application. FBR will verify details & issue an NTN within a few days.
To check if your NTN is active, go to the FBR NTN verification portal. Enter your CNIC & check your status.
How to Get an STN in Pakistan?
Log in to your FBR IRIS account. Select Sales Tax Registration.
Provide business name, NTN, type of business & address. Attach necessary documents like business registration certificate, bank details & rent agreement.
FBR may conduct a physical verification of your business location. If approved, your STN will be issued.
Once registered, you must file monthly sales tax returns. Failing to do so can lead to heavy fines.
Difference Between NTN and Filer
Many people think having an NTN makes them a filer. That is not true.
An NTN holder has registered with the Federal Board of Revenue. But if they do not file annual tax returns, they are non-filers.
Filers enjoy lower tax rates on property, vehicles, and bank transactions. Non-filers pay higher taxes.
To become a filer, you must submit tax returns every year through the Federal Board of Revenue IRIS portal.
Conclusion
In short both NTN and STN are important for tax compliance in Pakistan. NTN is for income tax, while STN is for sales tax.
If you earn taxable income, get an NTN. If you sell taxable goods or services, get an STN.
Being a filer has many benefits. Lower tax rates, better financial credibility, and no risk of Federal Board of Revenue fines.
Getting NTN and STN is easy through the Federal Board of Revenue IRIS portal. Stay compliant and avoid unnecessary penalties. I hope that you will love to read our following article too;
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I H.Dr Ahsan Karim is an advocate high court and old Ravian. I did my LLB from Punjab University Lahore in 2002. I am working as webmaster and social media manager too in Al-Faizan Tax Consultant. I have written more than 7000 articles on various topics.