Job Plus Freelancing: How Salary and Freelance Income Are Taxed in Pakistan
Freelance IT export income is taxed at 0.25% or 1% as a final tax and doesn't touch your salary slabs. Worked examples with a Rs 1.2 lakh salary.
By the TurantTools PK team · Updated 28 October 2026 · 3 min read
Many people freelance in the evenings alongside a job. Money received from abroad for IT and IT-enabled services is taxed when it reaches your bank: 0.25% if you're PSEB registered, 1% if not, as a final tax. It isn't added to your salary slabs.
With a Rs 120,000 monthly salary
| Freelance income a month | Tax on salary (a year) | Freelance tax, PSEB | Freelance tax, not registered | Tax if it were all salary |
|---|---|---|---|---|
| Rs 50,000 | Rs 32,400 | Rs 1,500 | Rs 6,000 | Rs 98,400 |
| Rs 150,000 | Rs 32,400 | Rs 4,500 | Rs 18,000 | Rs 326,000 |
| Rs 300,000 | Rs 32,400 | Rs 9,000 | Rs 36,000 | Rs 813,600 |
Watch out for
- Declare both your salary and your freelance income in your return; the freelance income goes in the final tax part.
- Receive the money through a bank channel that records it as an export of IT services, or you may not get the low rate.
- Income from clients in Pakistan doesn't get this low rate; it's taxed like normal business income.