Fiscal Year 2026-27 · Section 154A · 0.25% PSEB rate extended through Tax Year 2029

Pakistan Freelancer Tax Calculator 2026-27

Estimate the tax your bank deducts on IT export income, and compare PSEB filer vs non-filer rates under Section 154A.

Section 154AFinal tax when conditions are metForeign clients

Export income details

Fiscal year

Currency received

Active Taxpayer List (ATL) status

You must be on ATL to get the 0.25% rate and have it count as final tax. Banks deduct double from non-filers in 2021-22 and again from 2025-26 onwards.

PSEB registered

Your PSEB registration must be active to get the lower rate.

Monthly gross export income

Enter income before platform fees, bank charges, or business expenses.

Exchange rate

Rs.PKR / USD

The default exchange rate is only an example. Enter the PKR rate from the day the payment reached your bank account.

Your freelancer tax estimate

Lower PSEB rate used

Tax rate used (Section 154A)0.25%

Monthly Breakdown

Gross Income

Rs. 560,000

Tax

Rs. 1,400

Net Income

Rs. 558,600

Annual Breakdown

Gross Income

Rs. 6,720,000

Tax

Rs. 16,800

Net Income

Rs. 6,703,200

Compare your annual tax

PSEB-registered filer (0.25%)

Rs. 16,800

Filer without PSEB (1%)

Rs. 67,200

Yearly tax saved with PSEB registration

Rs. 50,400 / year

Your bank normally deducts the tax when the foreign payment reaches your account in Pakistan.

This is your final tax only if you meet all Section 154A requirements, including receiving the payment through a bank in Pakistan and completing the required tax filings.

When you can get the 0.25% PSEB rate

Make sure all of these are true for your foreign income.

Your income is from IT or IT-enabled services provided to foreign clients.
Your PSEB registration is active.
You are on the Active Taxpayer List (ATL).
You receive the foreign-currency payment through a bank in Pakistan.

Export income vs local-client income

This calculator is only for income from foreign clients. Calculate income from Pakistani clients separately as business income.

Business Tax Calculator for local-client income

Open the business calculator

Common freelancer tax scenarios

All export income

If all your income is from eligible IT exports, your PSEB registration is active, and you are on ATL, the 0.25% rate applies to your income before fees and expenses.

Mixed income

Keep income from foreign clients separate from income from Pakistani clients. Use this calculator for foreign-client income and the business-income rules for local income.

PSEB or ATL requirement not met

A filer without PSEB registration pays 1%. A PSEB-registered non-filer pays 0.5%. A non-filer without PSEB registration pays 2%.

Tax-rate alerts

Don't miss a change to the Section 154A rates

We'll email you if the export rates or the PSEB concession change, plus one reminder before the return deadline.

Freelancer tax rates in Pakistan for FY 2026-27

Your Pakistan Software Export Board (PSEB) registration and filer status decide which Section 154A tax rate applies to eligible IT and IT-enabled export income.

Freelancer tax rates in Pakistan for FY 2026-27
PSEB status	Taxpayer status	Rate on income before fees	How the tax is treated
Registered	Filer (on ATL)	0.25%	Lower PSEB rate under Section 154A
Not registered	Filer (on ATL)	1%	General rate under Section 154A
Registered	Non-filer	0.5%	Double the filer rate, for non-filers
Not registered	Non-filer	2%	Double the filer rate, for non-filers

For non-filers, these rates estimate what the bank may deduct. If you are not on ATL or do not meet the other Section 154A requirements, this may not be your final tax.

How freelancer tax is calculated under Section 154A

Convert the foreign payment to PKR using the exchange rate from the day it reached your bank account. The tax rate applies to the full amount before platform fees, bank charges, or business expenses.

Formula

Tax=export income in PKR before fees and expenses×tax rate

FY 2026-27 worked example

USD 2,000 a month at an example rate of PKR 280/USD is PKR 6,720,000 of export income per year.

PSEB-registered filer (0.25%): PKR 16,800
Non-filer (1%): PKR 67,200
Filer saves: PKR 50,400

PKR 280 is only an example, not a live exchange rate. Enter the rate from the day the payment reached your bank account.

Got questions?

Freelancer tax FAQs for Pakistan

Simple answers about tax on IT and IT-enabled export income in Pakistan.

What is the freelancer tax rate in Pakistan for FY 2026-27?

For eligible IT and IT-enabled export income under Section 154A, a filer pays 0.25% with active PSEB registration or 1% without it. A non-filer pays 0.5% with PSEB registration or 2% without it. These rates apply to income before fees and expenses, not profit.

What is PSEB, and why can registration reduce freelancer tax?

PSEB is the Pakistan Software Export Board. You can get the lower 0.25% rate if your PSEB registration is active, you are on ATL, and you meet the other Section 154A requirements.

How do I qualify for the 0.25% rate?

Keep your PSEB registration active, stay on the Active Taxpayer List, file the required tax return, and receive eligible foreign-currency payments through a bank in Pakistan.

Is this the final tax, or do I pay more?

If you meet all Section 154A requirements, the tax your bank deducts is the final tax on that eligible export income. You still need to file an annual tax return to stay on ATL, but that income is not taxed again under the normal tax slabs.

What about income from Pakistani clients?

Section 154A does not cover income from Pakistani clients. Treat it as business income and calculate its tax separately using the business-income rules.

Is freelancer tax based on income before expenses or on profit?

Section 154A applies the tax rate to eligible export income before platform fees, bank charges, or business expenses. For foreign currency, use the exchange rate from the day the payment reached your bank account.

Do payments from Upwork, Fiverr, Payoneer, or Wise qualify?

The platform alone does not decide this. The payment must be for eligible IT or IT-enabled services and must reach Pakistan in foreign currency through a bank. Ask your bank how it records the payment.

Were the rates different in earlier years?

Yes, in two ways. In 2021-22 there was one flat rate of 1% on every export payment — the lower PSEB rate did not exist yet — and non-filers paid double, so 2%. The 0.25% PSEB rate arrived in 2022-23, and from then until 2024-25 non-filers paid the same rate as filers. The doubled non-filer rates you see today start in 2025-26. Pick a year in the calculator and it uses that year's rates.

Does the bank deduct the tax automatically?

Yes. Your bank normally deducts the tax when an eligible foreign payment reaches your account in Pakistan.

This calculator provides an estimate, not tax or legal advice. Confirm your deduction with your bank or a qualified Pakistan tax professional.

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