Freelancer Tax Calculator
Foreign income for services is taxed at 0.25% if you're registered with PSEB for IT work, and 1% otherwise. Your bank deducts it, and it's your final tax if you file your return.
Income Tax Ordinance section 154A2026-27
01 The rules
How freelance income is taxed
For Rs 3 lakh a month, a PSEB-registered freelancer pays Rs 9,000 a year, compared with Rs 810,000 at normal income tax rates.
0.25% with PSEB
For exports of software, IT and IT-enabled services by people and firms registered with the Pakistan Software Export Board, until tax year 2029.
1% otherwise
Other services exported or rendered abroad, including IT work by people not registered with PSEB.
Final tax, if you file
It's your final tax on that income only if you file your return, plus any withholding or sales tax returns you're required to file.
Bring it in through a bank
The bank deducts the tax when foreign money arrives as export proceeds. Ask your bank to record it correctly.
02 Answers
Questions about freelancer tax
Short answers for freelancers and IT exporters.
Calculate your taxHow much tax do freelancers pay in Pakistan in 2026-27?
On foreign income received through a bank, 0.25% if you are registered with the Pakistan Software Export Board (PSEB) for IT or IT-enabled services, and 1% otherwise. The bank deducts it when the money arrives. It is your final tax on that income if you file your return.
How long does the 0.25% rate last?
For tax years 2024 to 2029. The Finance Act 2026 extended it from 2026 to 2029.
Do I still need to file a tax return?
Yes. The tax is only final if you file your return (and any withholding or sales tax returns you are required to file). Filing also puts you on the Active Taxpayer List.
Do non-filers pay double on freelance income?
No. The non-filer rules do not apply to tax on export of services under section 154A. But without a return the tax isn't final.
Does this apply to Upwork, Fiverr or Payoneer payments?
It applies to foreign earnings brought into Pakistan through a bank or authorised dealer as export of services. How you are paid can affect whether the bank treats it as export proceeds, so ask your bank to code the payment correctly.
Sources and last update
- Income Tax Ordinance 2001: section 154A; First Schedule Part III Division IVA (0.25% extended to tax year 2029 by the Finance Act 2026); Tenth Schedule rule 10
- Division I clause (1) of Part I (normal rates, for comparison)
- Federal Board of Revenue (FBR)
Last reviewed: 7 November 2026. How we calculate
Results are estimates, not tax advice. For your exact tax, check your salary certificate or ask a tax professional.