Freelancer Tax in Pakistan 2025-26 - PSEB & FBR Guide
Pakistan freelancer tax explained for TY 2025-26 - PSEB registration, the 0.25% final tax on foreign earnings, FBR slabs, allowable expenses, and how to file.
Are freelancers taxable?
Yes. Freelance income is treated as business income under the Income Tax Ordinance 2001. You must declare it whether paid in PKR or foreign currency.
The 1% reduced rate for IT exports
Income from export of computer software or IT services is subject to a final tax of just 1% if remittances are received through proper banking channels. Many platform earnings (Upwork, Fiverr) qualify.
Documents to keep
Bank statements showing inward remittances, platform payment receipts, PSEB registration (recommended), and invoices to clients. PSEB-registered freelancers get additional benefits including reduced tax rates.
Filing checklist
Register for NTN if you don't have one, declare your platform earnings under business income, claim allowable expenses (internet, software, equipment), and file before 30 September to stay on the Active Taxpayer List.
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