Section 154A · Tax Year 2027 · 0.25% extended to 2029

Freelancer Tax Calculator Pakistan 2026-27

Work out the tax on Upwork, Fiverr, Payoneer or direct foreign-client income — 0.25% with PSEB registration, 1% without — plus tax on any local-client income.

Enter Your Freelance Income

Rs
Rs

Bank transfer, or Payoneer / Wise withdrawn to your local account.

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Enter your freelance income and click Calculate.

📌 Key points

  • 0.25% (PSEB) rate extended to 30 June 2029 by Finance Act 2026
  • The bank deducts the tax when the remittance arrives
  • You must still file a return to stay on the ATL
  • Local-client income uses the normal business slabs

Related

How it works

How freelancer tax works in Pakistan

Freelancers who sell IT or IT-enabled services to clients abroad don't use the normal income tax slabs on that income. Under Section 154A of the Income Tax Ordinance, the bank that receives your foreign remittance deducts a flat percentage of the gross amount: 0.25% if you hold a valid PSEB registration, or 1% if you don't.

Example: Rs 300,000 a month from Upwork

That's Rs 3.6 million a year. With PSEB registration the tax is 0.25% × 3,600,000 = Rs 9,000; without it, 1% = Rs 36,000. The same Rs 3.6 million earned from local clients would be taxed under the business slabs at about Rs 810,000.

Local clients are a separate calculation

Income from Pakistani clients paid in rupees is not an export, so it is taxed under the non-salaried slabs. That's why the calculator keeps the two streams separate.

Steps to stay compliant

  1. Get an NTN on FBR IRIS (free) and file your return each year.
  2. Register with PSEB to qualify for 0.25% instead of 1%.
  3. Bring your earnings into a Pakistani bank account through normal banking channels.
  4. Keep invoices and bank advices (PRCs) as evidence of export income.

Last reviewed: 3 October 2026 · Applies to: Tax Year 2027 and Tax Year 2026

Sources

Estimates for planning only — not tax or religious advice. See our disclaimer, and tell us if you spot an error.

FAQ

Freelancer tax questions

What is the freelancer tax rate in Pakistan for 2026-27?
IT and IT-enabled export income received through banking channels is taxed under Section 154A: 0.25% if you are registered with the Pakistan Software Export Board (PSEB), and 1% if you are not. The bank deducts it when your remittance arrives. The Finance Act 2026 extended the 0.25% rate to 30 June 2029.
Is the 0.25% deduction my full tax?
For PSEB-registered freelancers the 0.25% is a final tax on that export income — it is not added to the normal slabs. You still have to file an annual return to stay on the Active Taxpayers List and to declare the income and your wealth.
What counts as export income for a freelancer?
Payment for IT or IT-enabled services delivered to clients abroad — for example through Upwork, Fiverr or direct foreign clients — that reaches your Pakistani bank account through a normal banking channel (bank transfer, or Payoneer/Wise withdrawn to a local bank).
What if I receive money outside the banking system?
The concessional rates depend on proceeds coming in through banking channels. Money received informally, or kept abroad, doesn't qualify and would be taxed under the normal business slabs. The calculator applies the slabs when you choose 'No'.
How is income from Pakistani clients taxed?
Payments from local clients aren't exports, so they are taxed under the normal non-salaried slabs (0% up to Rs 600,000, then 15% to 45%). Local companies may also deduct withholding tax under Section 153 when they pay you, which you adjust in your return.
How do I register with PSEB as a freelancer?
Apply on PSEB's website as an individual freelancer. You'll need your CNIC, an NTN (free, from FBR IRIS), a Pakistani bank account and evidence of your freelance work. PSEB charges a registration fee and the registration must be renewed.