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Freelancer Tax Calculator
Pakistan freelancer tax calculator for IT export income. Compare Section 154A at 0.25% with PSEB and 1% without it, and see the separate Section 154B rate on YouTube and TikTok receipts.
Same rules, different question
How freelancer tax is calculated in Pakistan
Enter foreign IT or freelance receipts in dollars or rupees. TaxGuide applies the Section 154A rate to the gross amount, before platform fees and expenses. PSEB-registered IT and IT-enabled exports use 0.25% through tax year 2029. Other exported services use 1%. From 1 July 2026, revenue from YouTube, Facebook, Instagram, and TikTok is a different charge under Section 154B, at 5% in the Finance Act. Income from Pakistani clients is not included.
Export and platform rates for 2025-26
Rule version v1. Last reviewed Oct 5, 2026.
| Income | On the ATL / not on the ATL |
|---|---|
| IT or IT-enabled export (Section 154A, PSEB rate) | 0.25% / 0.5% |
| Other exported services (Section 154A) | 1% / 2% |
The second figure is the schedule rate increased by 100% for a person who is not on the Active Taxpayer List. The Finance Act prints the first figure. Some export collections are excluded from that increase, so the bank advice controls.
Related
Questions
Is there tax on freelancers in Pakistan?
Yes, when the income is taxable in Pakistan. Foreign IT and IT-enabled receipts are usually taxed under Section 154A of the Income Tax Ordinance, 2001, not under the salary slabs. The bank often deducts the tax when the foreign payment is credited.
What is the freelancer tax rate in Pakistan for 2026-27?
For IT or IT-enabled exports, a PSEB-registered person on the Active Taxpayer List is taxed at 0.25% under Section 154A. Without PSEB registration the schedule rate is 1%. Finance Act 2026 extended the 0.25% row through tax year 2029. It did not change those two percentages.
Does PSEB registration change freelancer tax?
Yes, for qualifying IT and IT-enabled exports. Active Pakistan Software Export Board registration is what the 0.25% row requires. Other exported services stay at 1%. Registration does not turn YouTube or TikTok platform revenue into the 0.25% rate.
Is Upwork or Fiverr income taxed at 0.25%?
It can be, when the work is IT or IT-enabled services for a foreign client, PSEB registration is active, and the foreign-currency receipt meets Section 154A. The platform name alone does not decide the rate. The tax is on the gross receipt, before the platform fee.
Is YouTube income the same as freelancer export tax?
No. From 1 July 2026, Section 154B taxes revenue received from social media platforms, including YouTube, Facebook, Instagram, and TikTok. The Finance Act prints that rate at 5%. For a resident it is minimum tax, not the final 0.25% IT export tax.
Can platform fees be deducted before freelancer tax?
Not under Section 154A. The rate applies to export proceeds before Upwork or Fiverr fees, Payoneer or bank charges, and business expenses. Those costs matter for your own records. They do not reduce this particular tax.
What about income from Pakistani clients?
Section 154A does not cover it. Treat receipts from clients in Pakistan as business income and calculate that tax separately. This calculator is only for foreign IT exports, other exported services, and social-media platform revenue.
TaxGuide.pk provides informational estimates based on the selected tax year and published rules. Verify final tax obligations with official sources or a qualified tax professional.