NGO Taxation

NTN Registration

The income of an organization which is involved in religious, educational, charitable, welfare or development purposes activities is exempt from tax. No tax is payable on any donation, grant or charity which an Non Government/Profit Organization (NGO / NPO) receives to carry on its operation and projects. But under tax law an NGO sector is required to deduct tax while making payments, further filing of tax returns and preparation of accounts is also mandatory for all type of NGO’s. So NTN registration is also necessary with FBR for an NGO to fulfill legal obligations under tax law.

 Tax Exemption Certificate

Every NGO or NPO is required to must get exemption certificate to avail the benefit of exemption from tax. The certificate is issued by the Commissioner Inland Revenue (previously known as Commissioner Income Tax) for a specific period.

Filing of Annual Tax Return

An NGO or NPO are registered by government under various statues, an organization may opt registration under company law, trust law and society law but all type of NGO/NPO are required to file tax returns. We provide services of filing of tax returns to NGO’s as well, currently various NGO’s are availing our this facility.