What is STRN?
STRN (Sales Tax Registration Number) is a 7-digit number issued by FBR that authorizes a business to charge, collect, and deposit Sales Tax (GST) on goods. It's mandatory for manufacturers, importers, wholesalers, distributors, and retailers exceeding the prescribed turnover threshold. Standard GST rate in Pakistan is 18%.
Who Needs STRN Registration?
- Manufacturers — regardless of turnover, registration is mandatory
- Importers — must register before clearing goods from customs
- Wholesalers/Distributors — turnover above Rs. 10 million annually
- Retailers — Tier-1 retailers (large shops, chain stores, online sellers above threshold)
- Exporters — register to claim zero-rating and input tax refunds
Documents Required for STRN
| Document | For |
|---|---|
| NTN Certificate | All applicants |
| CNIC copy | Individual / Sole Proprietor |
| Incorporation Certificate | Company |
| Bank account certificate (maintained certificate) | All applicants |
| Business premises proof (rent agreement / ownership) | All applicants |
| Electricity/gas bill of business premises | All applicants |
| GPS-tagged photos of business premises | All applicants (post-2019 requirement) |
STRN Registration Process — Step by Step
- Login to IRIS: Use your existing NTN credentials to log into FBR's IRIS portal.
- Form 14(1): Submit the Sales Tax Registration application with business details, bank account, and premises information.
- Biometric Verification: Visit an authorized e-Sahulat/NADRA center for biometric verification (mandatory for most applicants).
- Post-Verification Visit: An FBR officer may conduct a physical verification of your business premises.
- STRN Issued: Once verified, FBR issues your 7-digit STRN — typically within 3-5 working days after biometric and premises verification.
After Registration — Monthly Compliance
| Task | Deadline | Penalty for Delay |
|---|---|---|
| Sales Tax Return (ST-3) | 18th of following month | Rs. 10,000 + 12% p.a. surcharge |
| Payment of Tax Due | 15th of following month | Default surcharge (KIBOR+3%) |
| Annexure-C (Sales Invoices) | With monthly return | Return rejection |
Important: Even with zero sales in a month, a "nil return" must still be filed. Missing even one monthly return can lead to STRN suspension and blacklisting from the FBR active taxpayer list for sales tax.
Frequently Asked Questions
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WhatsApp Now — 0328-4675162Business Tax Compliance in Pakistan — 2026 Complete Guide
Running a business in Pakistan requires compliance with multiple tax regimes simultaneously: Income Tax (FBR), Sales Tax (STRN), withholding tax compliance obligations as an employer and buyer, and provincial service tax (SRB, PRA, KPRA, BRA). Missing any one of these can trigger penalties and notices.
Business Tax Calendar 2026-27
| Filing | Due Date | Penalty for Late |
|---|---|---|
| sales tax return filing Return | 18th of next month | Rs.10,000/month |
| Monthly WHT Statement | 15th of next month | 0.1% of tax per day |
| Quarterly Advance Tax | 25th of Sept/Dec/Mar/Jun | 12% annual markup |
| Annual Income Tax Return | September 30 | Rs.10,000 or 0.1% of tax |
| Audit documentation | On demand | Rs.1,000,000 or more if non-compliant |
NTN Registration for Business
Every business entity — sole proprietor, partnership, private limited company, or NGO — must have a unique NTN. For companies, the NTN is linked to the CNIC of the principal officer. Registration is free via IRIS or in person at your Regional Tax Office (RTO).
STRN (Sales Tax Registration Number)
You must register for STRN if your annual taxable supplies exceed Rs.10 million. Once registered, you must:
- Charge 17% standard sales tax on goods (or applicable reduced rate)
- Issue FBR-compliant invoices with your STRN
- File monthly returns and pay net tax (output minus input)
- Maintain records for 5 years minimum
Minimum Tax — Section 113
If a company's normal tax liability is less than 1.25% of gross turnover, it must pay minimum tax. This applies even if the company shows a loss. For certain sectors (distributors, dealers), minimum tax rates differ.
Super Tax — Large Companies
Companies with income exceeding Rs.150 million pay Super Tax at 1-10% depending on income bracket and sector. Banking companies face a 10% super tax rate. This is on top of the normal 29% corporate tax rate.
For complete business tax setup, bookkeeping, and FBR compliance, contact Kamboh Associates at 0328-4675162.
Frequently Asked Questions — Business Tax Pakistan 2026
What is the corporate tax rate in Pakistan 2026?
The standard corporate tax rate in Pakistan for 2026-27 is 29% for private companies. Banks pay a higher rate of 39% (corporate tax 29% plus super tax 10%). Listed companies benefit from a 2% tax credit if they increase their tax paid from the previous year by 20%. Small companies (defined under the Companies Act) pay a reduced rate of 20% if meeting eligibility criteria.
When must a business register for sales tax (STRN) in Pakistan?
A business must register for Sales Tax Registration Number (STRN) if its annual taxable supplies of goods or services exceed Rs.10 million. Additionally, FBR can compulsorily register any person or business they believe should be registered. Service providers in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan must register with their respective provincial revenue authorities (PRA, SRB, KPRA, BRA) for service tax, with registration thresholds varying by province.
What is advance tax and how is it calculated for businesses?
Advance tax is paid quarterly by companies and businesses with annual tax liability above Rs.100,000. Each quarterly installment is 25% of the last assessed tax liability or estimated current year tax, whichever is higher. Installments are due on September 25, December 25, March 25, and June 15. Under-payment of advance tax results in 12% annual markup on the shortfall.
What is the difference between a sole proprietorship and an AOP for tax purposes?
A sole proprietorship has no separate legal entity — all income is declared in the owner's personal income tax return. An Association of Persons (AOP) is a partnership or joint venture that files its own tax return at AOP tax rates (similar to individual slab rates). The key difference is that AOP income is taxed at the AOP level first, and then individual partners' shares are also included in their personal returns — creating a potential double taxation issue that requires careful planning.
What records must a business maintain under Pakistan tax law?
Under Section 174 of the Income Tax Ordinance, businesses must maintain proper accounts and records for at least 5 years from the end of the income tax return filing. Required records include: sales and purchase invoices, cash receipts and payment vouchers, bank statements, payroll records and salary slips, stock registers, fixed asset schedules, and loan/liability documentation. For sales tax registered businesses, FBR requires additional records including output/input tax registers and STRN-compliant invoices.
Full-Service Business Tax Compliance
Kamboh Associates handles bookkeeping, sales tax, payroll tax, advance tax, and annual returns for businesses of all sizes. Monthly retainers from Rs.5,000.
Call / WhatsApp: 0328-4675162 | Office: 62-B, Johar Town, Lahore