Freelancer & IT Export Tax in Pakistan: A Complete Guide
Are you a freelancer working on platforms like Upwork, Fiverr, or Toptal? Or do you run an IT export company in Pakistan? Good news! The government of Pakistan offers special tax benefits to support the digital economy. However, understanding how to claim these benefits is very important. Our freelancer tax calculator helps you see how much you owe and how much you can save by registering with the right authorities.
Special Tax Rates for IT Exports
The FBR has different tax categories for people earning foreign currency through IT services:
- PSEB Registered: If your business or freelance profile is registered with the Pakistan Software Export Board (PSEB), you pay a very low tax of only 0.25% on your foreign income.
- Non-Registered: If you are not registered with PSEB, you pay a regular tax of 1% on your export income. This is still much lower than standard income tax!
- Local Income: Any money you earn from clients inside Pakistan is taxed according to normal salaried or business slabs.
How to Use the Freelancer Calculator
- Select Your Type: Click on "IT Export" or "Other Services" based on your work.
- Enter Foreign Income: Put the amount you receive in your bank from abroad (USD converted to PKR).
- Add Local Income: If you have local Pakistani clients, add that amount separately.
- Check Filer Status: Make sure you are a Filer to avoid extra tax on your local income.
Benefits of PSEB Registration
Registering with PSEB is not just about tax. It gives your business a professional identity, helps you get business visas easily, and allows you to participate in government-led international IT events. For most freelancers, the reduction from 1% tax to 0.25% tax pays for the registration fee in just a few months!