Freelancer tax calculator Pakistan 2026-27 (IT export, PSEB, 154A)
Freelancer / IT export tax (s.154A)
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Tax year 2027
What reaches your Pakistani bank account from Upwork, Fiverr, Payoneer, clients abroad.
Taxed separately under s.154B.
Tax the bank deducts (154A), per year
Rs 9,000
0.25% of what you receive · Rs 750 a month
If taxed under normal slabs instead
Rs 810,000
on profit of Rs 3,600,000
Difference
Rs 801,000
the final tax regime costs less
The 154A deduction is your final tax on this income only if you file your return (and, except PSEB-registered IT exporters, your sales tax returns). If you do not, or you opt out when filing, the income goes into normal slabs. The comparison uses the non-salaried table; it ignores any other income you have.
Source
Section 154A; First Schedule Part III Division IVA; section 154B and Division IIIAB (Finance Act 2026); section 153(1)(b) and Division III
- FBR Withholding Tax Rate Card, tax year 2027 (updated up to 30 June 2026, Finance Act 2026) · last checked 4 November 2026
- FBR Withholding Tax Rate Card, tax year 2026 (updated up to 30 June 2025, Finance Act 2025) · last checked 4 November 2026
- Finance Act 2026 (Act XLIII of 2026), Gazette of Pakistan, 26 June 2026 · last checked 4 November 2026
- Income Tax Ordinance 2001, FBR consolidated text amended up to 20.02.2026 · last checked 4 November 2026
- Pakistan Software Export Board (PSEB): registration · last checked 4 November 2026
Rates at a glance
| How you are paid | 2025-26 | 2026-27 | Nature |
|---|---|---|---|
| From abroad, PSEB-registered IT / IT-enabled services (154A) | 0.25% | 0.25% | Final, if conditions met |
| From abroad, any other service export (154A) | 1% | 1% | Final, if conditions met |
| Social media platform revenue (154B) | — | 5% / 10% | Minimum tax (residents) |
| Pakistani business pays you for IT services (153) | 4% / 8% | 4% / 8% | Withholding |
| Pakistani business pays an independent professional (153) | 15% / 30% | 15% / 30% | Withholding |
Where two rates are shown: filer / non-filer.
Non-filer rate for 154A in 2025-26: official sources disagree
When is 154A your final tax?
- You file your income tax return for the year.
- You file withholding statements, if the law requires them from you.
- You file sales tax returns where required. This condition does not apply to PSEB-registered IT exporters.
- You do not opt out. You can choose the normal regime each year when filing; then the income goes into slabs and the deduction counts against the tax.
Questions people ask
How much tax do freelancers pay in Pakistan?
The bank deducts 1% from money arriving from abroad for services; 0.25% for software, IT and IT-enabled services by people registered with PSEB. If you file your return, that is your final tax on this income.
Is the 0.25% PSEB rate still available?
Yes. Finance Act 2026 extended it to tax year 2029 (until June 2029).
Do freelancers need to file a return?
Yes. The final-tax benefit depends on filing. Without it the income can be taxed at normal slab rates (15% to 45%), and as a non-filer you pay more on bank, property and car deals.
What is the new tax on YouTube income?
New section 154B from tax year 2027: banks deduct 5% from revenue received from social media platforms (10% for non-filers). For residents it is a minimum tax: your tax on that income will not be lower.
What if a Pakistani company pays me?
Then section 153 applies, not 154A: 4% for IT services and 15% for independent professionals such as software developers in tax year 2027.
How do I register with PSEB?
Online on PSEB’s website, as a freelancer or a company. Fees and conditions change; check PSEB’s site for the current requirements.
Want a tax consultant to check your case?
Filing a return, becoming a filer, a notice from FBR, or a property or freelance question. Send a short request; asking is free and you decide whether to go ahead.