Pakistan pack · rules valid to 30 Jun 2027
Pakistan Freelancer & IT Export Tax Calculator (Tax Year 2027)
Work out the tax your bank deducts on foreign payments for software, IT, IT-enabled and other services you export from Pakistan in tax year 2027 (1 July 2026 to 30 June 2027), under section 154A of the Income Tax Ordinance, and whether it is your final tax.
For income from exporting services (for example freelancing for clients abroad), received in Pakistan through a bank. Salary from a Pakistani employer, and revenue from YouTube, Facebook, TikTok or similar platforms, are taxed under other sections.
- Tax deducted by your bank (section 154A)
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- Which rule applies
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- Rate on money received through banks
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- Export income in rupees
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- Received through banking channels
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- Not covered by section 154A
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- Effect of ATL status on this rate
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How it is calculated
- Export income in rupees = amount in rupees, or US$ amount × the exchange rate your bank gave you
- Covered amount = export income × share received through banking channels (section 154A applies to proceeds realised by an authorised dealer in foreign exchange)
- PSEB-registered exporter of computer software, IT or IT-enabled services: tax = 0.25% × covered amount (tax years 2024 up to 2029)
- Any other export of services: tax = 1% × covered amount
- Final tax if you file your return, file withholding statements and sales tax returns where required (sales tax returns are not a condition for PSEB-registered IT exporters) and claim no foreign tax credit; otherwise the deduction is not final and normal rules apply
- Not on the Active Taxpayers List: no higher rate for this deduction (Tenth Schedule, rule 10(ca))
- Income not received through banking channels: outside section 154A, normal rules apply (not calculated here)
Worked example
A PSEB-registered freelance developer who received Rs 5,000,000 from foreign clients through a Pakistani bank in tax year 2027 and files a return.
| You enter | |
|---|---|
| I am entering my income in | Pakistani rupees (Rs) |
| Export income for the tax year | 5,000,000 |
| Your exchange rate (Rs per US$) | Rs 0 |
| Share received in Pakistan through banking channels | 100 % |
| Registered with PSEB? | Yes, PSEB registered (software, IT or IT-enabled) |
| Do you file your income tax return? | Yes, and I do not opt out of final tax |
| On the Active Taxpayers List (ATL)? | Yes |
| You get | |
| Tax deducted by your bank (section 154A) | Rs 12,500 |
| Which rule applies | Final tax at 0.25%: PSEB-registered export of software, IT or IT-enabled services |
| Rate on money received through banks | 0.25% |
| Export income in rupees | Rs 5,000,000 |
| Received through banking channels | Rs 5,000,000 |
| Not covered by section 154A | Rs 0 |
| Effect of ATL status on this rate | None: the higher non-ATL rates do not apply to section 154A (Tenth Schedule, rule 10(ca)) |
Your bank deducts 0.25% of the Rs 5,000,000 received through banking channels: Rs 12,500. Because you file your return, this is your final tax on that income: it is not added to your other income or taxed under the slabs, and no expenses are deducted from it.
Questions
Which tax year is this?
Tax year 2027, which runs from 1 July 2026 to 30 June 2027. The 0.25% rate for PSEB-registered exporters applies for tax years 2024 up to 2029: the Finance Act 2026 extended it from 2026 to 2029.
Is it 0.25% or 1%?
0.25% if you are registered with and certified by the Pakistan Software Export Board (PSEB) and you export computer software, IT services or IT-enabled services (section 154A(1)(a) and Division IVA, S. No. 1). In any other case of exported services, including the same work without PSEB registration, the rate is 1% (Division IVA, S. No. 2).
Do I have to bring 80% of my earnings into Pakistan?
Not for this tax. The "80% of export proceeds brought into Pakistan" condition belonged to an old income tax exemption for IT exports (Second Schedule, Part I, clause (133)), which the Finance Act 2021 removed. Section 154A has no 80% test: it simply applies to the money a bank or other authorised dealer receives for you. Money kept or received outside banking channels is not covered by it and falls under the normal rules.
Does it matter if I am not on the ATL?
Not for the rate. For most withholding taxes, people not on the Active Taxpayers List pay double (Tenth Schedule, rule 1), but rule 10(ca) excludes tax deducted under section 154A. What does matter is filing your return: the deduction is your final tax only if your return (and any withholding statements and sales tax returns you must file) is filed.
What does "final tax" mean for me?
The deducted amount settles the tax on that income. Under section 169 the income is not added to your other income or taxed under the slabs, and no expenses can be deducted from it. You still declare it in your return. If you do not meet the conditions, or choose to opt out when filing, the income is taxed under the normal rules and the deduction counts towards that tax.
Where does this sit against the salary or business slabs?
When the final-tax conditions are met, export income taxed under section 154A is kept out of the slabs altogether. Your other income, such as a salary from a Pakistani employer, is still taxed under its own rules. Our Pakistan Salary Tax Calculator works out the salary part.
I earn from YouTube, Facebook or TikTok. Is that this tax?
No. From tax year 2027, revenue from social media platforms credited to your account has its own section, 154B, with tax deducted at 5% (First Schedule, Part III, Division IIIAB). For residents that is a minimum tax, not a final one. This calculator does not cover it.
Does super tax apply to IT exporters?
The Finance Act 2026 added clause (104B) to Part IV of the Second Schedule: super tax under section 4C does not apply to a person whose export proceeds for the tax year are more than 80% of total turnover. Super tax starts only at very high incomes; this calculator does not include it.
Sources and checks
- Income Tax Ordinance 2001, amended up to 30.06.2026, FBR: section 154A (pp. 337–338); section 169 (p. 360); First Schedule, Part III, Division IVA (p. 547); Tenth Schedule, rules 1 and 10(ca) (pp. 779, 784); Second Schedule, Part I, omitted clause (133) footnote (p. 620) and Part IV, clause (104B) (p. 709) · updated by the authority to 30 June 2026
- Finance Act 2026, Gazette of Pakistan (Extraordinary), 26 June 2026, FBR: First Schedule, Part III, Division IVA, "2026" replaced by "2029" (p. 584); section 154B inserted (p. 569) and Division IIIAB (p. 583); Second Schedule, Part IV, clause (104B) (p. 587) · updated by the authority to 26 June 2026
- Pakistan Software Export Board (pseb.org.pk, now Tech Destination Pakistan): membership and registration for companies and freelancers
Last checked: 16 October 2026. This calculator passes 11 automatic tests before every release.
Your numbers never leave your device: the calculation runs in your browser and nothing you type is sent or stored.
Covers only the tax deducted under section 154A on export proceeds received through banks. Tax on income outside section 154A, on income where the final-tax conditions are not met, super tax and any sales tax on services are not calculated. Results are estimates for information only and are not financial, tax or legal advice. Check important figures with a qualified professional before you act on them.
In our reference tables
- Pakistan Income Tax Slabs 2026-27 (Salaried) in One Table Tax year 2027 slabs, last year's slabs and tax at common salaries