Freelancer Tax Calculator
Tax on money you earn from foreign clients for software, IT and IT-enabled services.
= 5 lakh per month
Registered with PSEB?
Aap ka hisaab · your result
Monthly take-home
PKR 498,750
4.99 lakh a month
Monthly tax
PKR 1,250
Annual tax
PKR 15,000
Annual income
PKR 6,000,000
Same income as salary
PKR 1,104,000 tax
Amount daalein
Enter your foreign income above and your tax and take-home appear here instantly.
How your tax was worked out
PKR 500,000 a month from foreign clients, PSEB registered.
How it's calculated
- Monthly foreign income × 12 gives annual export proceeds.
- With PSEB registration, tax is 0.25% of the proceeds; without it, 1%.
- The tax is on the full amount received. There are no slabs and no expense deductions.
- Your bank deducts it when the money arrives, and it is your final tax on this income.
Tax rates on IT export income, 2026-27
| Who | Tax | Rate |
|---|---|---|
| Software, IT and IT-enabled services exporter registered with PSEB | Final tax on export proceeds | 0.25% |
| Not registered with PSEB, or other exported services | Final tax on export proceeds | 1% |
Source: Income Tax Ordinance 2001, section 154A and First Schedule, Part III, Division IVA, as amended by the Finance Act 2026. The 0.25% rate applies for tax years 2024 to 2029. Final tax on proceeds brought into Pakistan through a bank, when you file your income tax return.
Tax on common freelance incomes
Monthly tax on foreign income for tax year 2027, with and without PSEB registration, next to the tax a salaried person would pay on the same amount.
| Monthly income | With PSEB (0.25%) | Without (1%) | As salary |
|---|---|---|---|
| PKR 100,000 | PKR 250 | PKR 1,000 | PKR 500 |
| PKR 250,000 | PKR 625 | PKR 2,500 | PKR 23,000 |
| PKR 500,000 | PKR 1,250 | PKR 5,000 | PKR 92,000 |
| PKR 1,000,000 | PKR 2,500 | PKR 10,000 | PKR 264,500 |
| PKR 2,000,000 | PKR 5,000 | PKR 20,000 | PKR 614,500 |
How to get the lower rate
- Register with the Pakistan Software Export Board (PSEB) as a freelancer or IT company, and keep the registration current.
- Have clients or platforms such as Upwork, Fiverr and Payoneer pay into a Pakistani bank account through normal banking channels.
- When the bank asks the purpose of an incoming payment, choose IT or IT-enabled services export, so the right rate is deducted.
- Keep your bank's proceeds realisation certificates (PRCs) and file your income tax return every year.
If your bank deducted tax at the higher rate after you registered, show it your PSEB certificate so later payments are taxed at 0.25%.
Questions people ask
Who gets the 0.25% rate?
Exporters of computer software, IT services and IT-enabled services who are registered with and certified by the Pakistan Software Export Board (PSEB). The rate is set until tax year 2029. Without PSEB registration, export proceeds are taxed at 1%.
Is this the only tax I pay on this income?
Yes, when the conditions are met it is a final tax: your bank deducts it as the money arrives and no slab rates apply. You must file your income tax return and bring the money into Pakistan through a bank, and you cannot claim credit for tax paid abroad. If the conditions are not met, the income is taxed at normal rates instead.
What about money I keep in Payoneer or abroad?
Only export proceeds brought into Pakistan through banking channels fall under this regime. Earnings left offshore are not covered until you bring them in.
I also have Pakistani clients. Is that income included?
No. Work for local clients is ordinary business income, taxed at slab rates after expenses. Enter only your foreign earnings here.
Do I still need to file a return?
Yes. Filing is one of the conditions for the final tax treatment, and it keeps you on the Active Taxpayers List.
Do non-filers pay a higher rate?
No. Unlike most withholding taxes, the doubled non-filer rates do not apply to this section, so the bank deducts 0.25% or 1% either way. But if you do not file your return, the tax stops being final and the income can be taxed at normal rates.