Section 154 & the IT export regime

Freelancer income tax calculator Pakistan

Dollars arriving through Payoneer or a bank transfer are taxed very differently from rupees paid by a local client. Choose the option that matches how the money actually reaches you.

How do you get paid?
Only money actually remitted into a Pakistani bank account counts.
Tax payable per yearRs 0
Effective rate0%
Income after taxRs 0
Enter your income to see the working.

Freelancer tax calculator Pakistan: pick your route

The gap between the two routes is big enough that registering properly is one of the better money decisions a Pakistani freelancer can make.

Route How it is taxed Rate
Registered IT / IT-enabled export Final tax on gross export proceeds remitted through banking channels, under the concessionary regime extended to Tax Year 2029 0.25%
Unregistered export income Falls back to the normal non-salaried slabs on net income 15% – 45%
Local freelance / PKR clients Treated as ordinary business income on the non-salaried slabs 15% – 45%
The 0.25% final tax is for genuine export of IT and IT-enabled services, paid in foreign currency and brought in through normal banking channels by someone registered with FBR and, usually, the Pakistan Software Export Board. Cash payments, crypto that never went through a bank and work billed to a Pakistani client do not qualify. That income is taxed as ordinary business income.

Freelancer questions, answered

I get paid through Payoneer. Does that count as a banking channel?

Generally yes, once the money lands in your Pakistani bank account and the bank issues a proceeds realisation certificate. Keep every one of those certificates, because your return will be matched against them.

What if I have both export clients and local ones?

Run each stream through its own route, since they fall under different sections of the Ordinance, and then add the two tax figures together.

Can I keep the 0.25% rate if I am not registered with PSEB?

The concessionary rate depends on registration. Without it, your export income drops back to the normal non-salaried slabs. Registering is normally a short online process and often pays for itself within the first year.

Is the 0.25% charged on my profit or on what I receive?

On what you receive. It is a final tax on gross export proceeds remitted through the bank, so there is no deduction for software, internet or a co-working desk. That also means there is nothing more to pay on that income once the tax is settled.

Freelancer ko FBR mein register hona zaroori hai?

Agar aapki saalana income Rs 600,000 se zyada hai to NTN lena aur return file karna lazmi hai, chahe client Pakistan mein ho ya bahar.