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PSEB registration and the 0.25% freelancer tax
Tax year 2026-27 · Updated Oct 1, 2026 · TaxGuide
The 0.25% row in Section 154A is not a general freelancer discount. It is the rate for export of computer software, IT services, and IT-enabled services by a person registered with the Pakistan Software Export Board.
On the same receipts, 1% is four times 0.25%. A person bringing in Rs 6,720,000 in a year pays about Rs 16,800 at 0.25% and about Rs 67,200 at 1%. The freelancer tax calculator shows that difference from your own figures. The example uses USD 2,000 a month at an illustrative rate of 280.
What has to stay true after registration
Registration is checked against the rest of the section, not instead of it.
- The services have to be IT or IT-enabled services for a foreign client.
- The registration has to be active for the period you claim the rate.
- The proceeds have to arrive through a bank in Pakistan.
- You file the income tax return and stay on the Active Taxpayer List. A non-filer estimate for 2025-26 and 2026-27 uses double the schedule rate, because that is how the Tenth Schedule increase works when the bank applies it.
Renewal is part of “active”. A lapsed registration is not a 0.25% registration.
How to register
PSEB publishes the current freelancer and company process, the fee, and the document list on pseb.org.pk. TaxGuide does not copy a fee, because PSEB changes it. In practice the file is built around an NTN, identity papers, and evidence of foreign IT receipts.
- Get an NTN and be in a position to file a return. ATL status is the list banks use.
- Open the PSEB freelancer or company application and use the document list on that site.
- After approval, keep the certificate and the renewal date with your bank credits.
- Tell the bank the correct purpose of the inward payment so the withholding follows Section 154A rather than a different section.
What registration does not do
It does not exempt the income. 0.25% is still tax.
It does not apply to services that are not IT or IT-enabled exports. Those stay at 1% under Section 154A.
It does not apply to social-media platform revenue. That is Section 154B from 1 July 2026.
It does not apply to clients in Pakistan. Those receipts are outside this export rate. The background is in freelancer tax in Pakistan.
Questions
Is PSEB registration mandatory for freelancers?
No. Without it, qualifying IT exports are still taxed, at the 1% Section 154A rate rather than 0.25%. Registration is how the lower row applies.
Does PSEB cut tax on YouTube income?
No. Platform revenue is Section 154B from 1 July 2026. PSEB registration does not move that revenue onto the 0.25% IT export row.
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.