0.25%
PSEB + ATL IT export tax
Enacted · Finance Act 2026
Freelancers & IT — Budget 2025–26 vs 2026–27
Verified changes for IT exporters, freelancers, foreign-card payments and creator revenue in Pakistan.
Enacted 26 June 2026 · Effective 1 July 2026
Enacted 26 June 2026Effective 1 July 2026
- Reviewed against Finance Act 2026
At a glance
Freelancers and IT budget changes overview
TY 2029
concession extended through
0.5%
foreign-card advance tax
5%
new social-media WHT
What changed for freelancers & IT?
| Measure | FY 2025–26 | FY 2026–27 | Impact |
|---|---|---|---|
| 1. PSEB + ATL IT/ITeS exports | 0.25% final tax; concession through TY 2026 | 0.25% final tax; extended through TY 2029 | Extended |
| 2. General ATL IT/ITeS exports | 1% final tax | 1% final tax | No change |
| 3. Non-ATL Section 154A rates | 0.5% PSEB / 2% general | 0.5% PSEB / 2% general | No change |
| 4. Foreign-card payments | 5% advance tax | 0.5% advance tax | Lower |
| 5. Social-media platform receipts | No dedicated Section 154B | 5% WHT under new Section 154B | New |
| 6. Other export proceeds — not Section 154A | 2% aggregate collection | 1.25% aggregate collection | Lower |
1. PSEB + ATL IT/ITeS exports
Extended- FY 2025–26
- 0.25% final tax; concession through TY 2026
- FY 2026–27
- 0.25% final tax; extended through TY 2029
2. General ATL IT/ITeS exports
No change- FY 2025–26
- 1% final tax
- FY 2026–27
- 1% final tax
3. Non-ATL Section 154A rates
No change- FY 2025–26
- 0.5% PSEB / 2% general
- FY 2026–27
- 0.5% PSEB / 2% general
4. Foreign-card payments
Lower- FY 2025–26
- 5% advance tax
- FY 2026–27
- 0.5% advance tax
5. Social-media platform receipts
New- FY 2025–26
- No dedicated Section 154B
- FY 2026–27
- 5% WHT under new Section 154B
6. Other export proceeds — not Section 154A
Lower- FY 2025–26
- 2% aggregate collection
- FY 2026–27
- 1.25% aggregate collection
Final-tax treatment under Section 154A depends on meeting the applicable export, banking, registration and filing conditions.
Example: PKR 6,720,000 annual IT export receipts
PSEB + ATL
PKR 16,800 tax
General ATL
PKR 67,200 tax
The current tax amount is unchanged; Finance Act 2026 extends the 0.25% concession window.
Explore budget impact by sector
Compare the enacted FY 2026–27 changes across taxpayers and industries.
Freelancers & IT
- 0.25% PSEB rate extended to Tax Year 2029
- Export collection: 1.25%
- Foreign-card WHT: 0.5%
Business & super tax
- 0% for most persons up to PKR 500M
- 8% above PKR 500M
- Banks, E&P and fertiliser remain at 10%
Property
- Section 7E repealed
- Sale WHT: 2.75%
- Purchase WHT: 1.25%
Vehicles
- Imported EV FED: 0% / 30% / 40% by USD value
- Imported 2000cc+ vehicles: new special duty
- ICT ≤1000cc: PKR 20,000 lifetime
Solar
- 10% sales tax continues
- No new Finance Act 2026 increase
Defence
- PKR 3.00T defence services
- PKR 822B military pensions, separate
- PKR 925.8B physical assets
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Frequently asked questions
Did the 0.25% IT export tax rate change in Budget 2026–27?
No. PSEB-registered exporters on the ATL keep the 0.25% final tax on IT and ITeS export receipts. What changed is the window: Finance Act 2026 extends the concession from Tax Year 2026 through Tax Year 2029.
What rate applies to freelancers who are not PSEB registered?
General ATL IT and ITeS export receipts remain at 1% final tax under Section 154A. Non-ATL rates are also unchanged at 0.5% for PSEB-registered exporters and 2% for general exporters.
How much tax is due on PKR 6,720,000 of export receipts?
A PSEB-registered ATL exporter pays PKR 16,800 at 0.25%, and a general ATL exporter pays PKR 67,200 at 1%. Both amounts are the same as FY 2025–26 because Finance Act 2026 extended the concession rather than changing the rate.
What is the new social-media tax for creators?
Finance Act 2026 introduces Section 154B, which applies a 5% withholding tax to social-media platform receipts. There was no dedicated Section 154B withholding on these receipts in FY 2025–26.
Did tax on foreign-card payments change?
Yes. Advance tax on foreign-card payments falls from 5% to 0.5%, which lowers the upfront cost of receiving or spending through international card transactions.
Does income from Pakistani clients qualify for these rates?
No. Income from Pakistani clients is not Section 154A export income. It is generally treated as business income and should be calculated separately under the non-salaried rules.
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