Freelancer / IT Export Tax (Section 154A)
0.25% final tax for PSEB-registered IT exporters (extended to 2029) · FY 2026-27
Final tax under Section 154A if proceeds remitted through banking channels.
You must be on ATL + have active PSEB registration for the 0.25% rate.
Non-filers pay double the rate. This is an estimate only.
When you can get the 0.25% PSEB rate
Make sure all of these conditions are true for your foreign income:
- Your income is from IT or IT-enabled services provided to foreign clients.
- Your PSEB registration is active.
- You are on the Active Taxpayer List (ATL).
- You receive the foreign-currency payment through a bank in Pakistan.
Freelancer tax rates in Pakistan (FY 2026-27)
| PSEB Status | Taxpayer Status | Rate |
|---|---|---|
| Registered | Filer (on ATL) | 0.25% |
| Not registered | Filer (on ATL) | 1% |
| Registered | Non-filer | 0.5% |
| Not registered | Non-filer | 2% |
How the tax is calculated
Convert the foreign payment to PKR using the exchange rate from the day it reached your bank account. The tax rate applies to the full amount before platform fees, bank charges, or business expenses.
Formula: Tax = Export Income (in PKR) × Applicable Rate
Frequently Asked Questions
For eligible IT and IT-enabled export income under Section 154A, a filer pays 0.25% with active PSEB registration or 1% without it. A non-filer pays 0.5% with PSEB registration or 2% without it.
PSEB (Pakistan Software Export Board) registration allows eligible IT exporters to avail the reduced 0.25% final tax rate under Section 154A, provided they are also on the Active Taxpayer List (ATL).
If you meet all Section 154A requirements, the tax deducted by the bank is treated as final tax on that export income. You still need to file an annual tax return to remain on ATL, but that income is not taxed again under normal slabs.
Section 154A only applies to foreign clients. Income from Pakistani clients is treated as normal business income and taxed under regular progressive slabs.
Yes, as long as the payment is for eligible IT/IT-enabled services and reaches Pakistan in foreign currency through a banking channel. The platform itself does not decide the rate — the nature of service and banking channel do.
Yes. Your bank normally deducts the applicable Section 154A tax at the time the foreign remittance is credited to your account in Pakistan.