How to use the freelancer tax calculator
- 1 Enter your monthly freelance income received through a bank or approved channel.
- 2 Choose whether you are registered with PSEB.
- 3 Read your final tax for the year.
- 4 Compare it with tax at normal slab rates.
Worked example
A PSEB-registered freelancer receiving Rs 400,000 a month. Yearly income is Rs 4,800,000. The final tax at 0.25% is only Rs 12,000 a year. At normal non-salaried slab rates the tax would be about Rs 1,290,000, so the final tax regime saves about Rs 1,278,000.
Keeping the low freelancer rate
- Bring money through banks: the final tax applies to foreign earnings received through banking channels, so keep a clear record of each remittance.
- PSEB registration as an individual freelancer is done online and cuts the rate from 1% to 0.25%.
- File a return every year and declare the income under the final tax regime to stay on the Active Taxpayer List.
- Local clients are different: income from clients in Pakistan is not export income and is taxed under normal slabs.
Got a salaried job too? Work out that part with the Salary Tax Calculator. Local business income uses the Business Income Tax Calculator.
Features
Final tax regime
0.25% for PSEB-registered freelancers, extended to 30 June 2029.
Unregistered rate
1% if you are not registered with PSEB.
Saving shown
Compares with normal non-salaried slab tax.
When to use it
New freelancers
Understand what tax you will pay on earnings. Salaried job too? Use the Salary Tax Calculator.
PSEB registration
See whether registering is worth it. Local clients? Use the Business Income Tax Calculator.
Filing returns
Prepare figures for your return. See what filing saves with the Filer vs Non-Filer Tax Calculator.
Agencies
Estimate tax for small IT export businesses. Saving your earnings? Try the Committee Calculator.
Related Tax tasks
Frequently asked questions
How are freelancers taxed in Pakistan?
Income from IT and IT-enabled service exports received through banking channels is taxed under a final tax regime: 0.25% for PSEB-registered freelancers and 1% for others.
Is tax deducted automatically?
Banks usually withhold tax on foreign remittances for IT exports at the time of conversion. Keep your bank certificates.
How do I register with PSEB?
Apply online on the PSEB website with your CNIC, bank details and proof of freelance work, and pay the registration fee.
Do I still need to file a return?
Yes. File your return and declare the income under the final tax regime to stay on the Active Taxpayer List.
What counts as IT-enabled services?
Software development, web design, digital marketing, graphic design, content writing, call centres and similar services delivered remotely to foreign clients.
What if I receive money through Payoneer or Wise?
The income should be brought into Pakistan through banking channels. Transfers to a Pakistani bank account are usually treated as export remittances.
Do freelancers pay sales tax?
Provincial sales tax on services may apply in some cases. Many IT exports are exempt or zero-rated. Check your province's rules.
Is the 0.25% rate permanent?
It has been extended to 30 June 2029, as long as you keep your PSEB registration and filer status.
Can I claim expenses as a freelancer?
Under the final tax regime the tax is a fixed share of export receipts, so business expenses are not deducted. This is why the rate is so low.
What if I also have a job?
Salary is taxed separately under salaried slabs. Your freelance export income stays under the final tax regime.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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