Complete Permanent Account Number (PAN) Guide for Nepal

A Permanent Account Number (PAN) is a unique, life-long 9-digit alphanumeric identifier issued by the Inland Revenue Department (IRD) of the Government of Nepal. Whether you are an employee drawing a monthly salary, a freelancer receiving international wire transfers, or a retail investor receiving cash dividends from NEPSE stocks, having a registered PAN is now mandatory under the Income Tax Act 2058. Without a PAN linked to your Demat and bank accounts, institutions are statutorily required to deduct withholding tax at punitive non-registered rates (up to 15% instead of the standard 5% concession).

In Nepal, PAN is broadly bifurcated into Personal PAN (व्यक्तिगत स्थायी लेखा नम्बर) and Business PAN (व्यावसायिक प्यान). Personal PAN is issued to individual citizens and is strictly non-transferable; it records personal salary deductions (Section 87 TDS), bank deposit interest taxes, and capital gains from stock trading. Business PAN, on the other hand, is tied to registered sole proprietorships, partnerships, or private limited companies registered with the Department of Industry or local municipal wards, and often includes Value Added Tax (VAT) or Excise endorsements. You should never conduct commercial business under a personal PAN, nor can an individual hold more than one personal PAN.

You no longer need to stand in physical queues or pay document agents to obtain a personal PAN. The entire submission process is 100% digital on the official IRD portal (taxpayerportal.ird.gov.np). Navigate to "Taxpayer Portal" -> "Registration (PAN, VAT, Excise)" -> "Application for Registration". Fill in your basic demographics matching your citizenship certificate exactly: Full Name, Date of Birth in Bikram Sambat (B.S.), Citizenship Number, Issue District, and Issue Date. Select "Personal PAN" under registration category, and choose your nearest Taxpayer Service Office (करदाता सेवा कार्यालय - TSO) based on your permanent or current residence.

Attach clear, high-resolution scans of your Citizenship certificate (both front and back sides) and a color passport-sized photograph with a plain background. Files should be under 500 KB in JPEG or PNG format. While many Taxpayer Service Offices (TSOs) in major metropolitan areas now issue digital PANs directly via SMS/email notification, certain offices may require a brief 2-minute physical verification where you present your original citizenship document to receive the physical laminated green PAN card.

Since fiscal year 2076/77, the Securities Board of Nepal (SEBON) and CDSC mandated PAN linking for all capital market participants. When you trade shares on the Nepal Stock Exchange (NEPSE) or receive cash dividends, the clearing system automatically cross-references your Demat account. If your PAN is verified in MeroShare, your capital gains tax (5% for holdings > 365 days, 7.5% for <= 365 days) is recorded as final withholding in your tax profile. If unlinked, you risk delays in share transfers and administrative audit notices.

If you are employed in an organization in Nepal, your employer deducts tax at source every month under Section 87 and deposits it directly to the Government treasury under your 9-digit PAN. You can independently verify these deposits by logging into the IRD Taxpayer Portal using your PAN and taxpayer login credentials. Reviewing your tax ledger annually ensures your employer has remitted the exact sums shown on your salary slips before filing your annual Form D-01 income tax statement.

Common friction points include misspelled English names differing from citizenship transliterations, discrepancy between B.S. and A.D. birthdates, and previous automated PAN generations by past employers. If you receive an error stating "Citizenship already registered", visit your nearest Inland Revenue Office with your original citizenship certificate. The tax officer will merge duplicate profiles or reset your taxpayer portal access credentials within 10 minutes.