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Freelancer Tax on Rs 200,000 a Month (2026-27)

Earning Rs 200,000 a month from abroad? Tax is Rs 500 a month if you're PSEB registered, or Rs 2,000 if not. See your exact amount.

Your foreign freelance income

Registered with PSEB?

Your tax 2026-27

Tax (per month)

Rs 500

You keep (per month)

Rs 199,500

Tax (per year)

Rs 6,000

Tax rate: 0.25% of what you receive (final tax, deducted by your bank)

Yearly income: Rs 2,400,000

How it works

  • โœ”IT and IT-enabled services exported from Pakistan pay a final tax on the money received.
  • โœ”0.25% if you are registered with the Pakistan Software Export Board (PSEB), extended to June 2029.
  • โœ”1% if you are not registered with PSEB.
  • โœ”The bank deducts it when your payment arrives through a banking channel (bank account, approved payment services). Keep the bank's tax certificate.
  • โœ”Stay on the Active Taxpayer List (ATL) by filing your return every year. If you're not on the ATL, banks can deduct more.

Estimate for IT/IT-enabled export income under section 154A (Finance Act 2026). Not for local clients, other services or goods. Rules last checked: October 2026. Confirm with FBR or a tax adviser.

๐Ÿ’ฌ Share with other freelancers:

Tax per monthTax per year
PSEB registered (0.25%)Rs 500Rs 6,000
Not registered (1%)Rs 2,000Rs 24,000

Questions people ask

How much tax do freelancers pay in Pakistan?+

On IT and IT-enabled services exported abroad: 0.25% of the money received if you're registered with PSEB, or 1% if you're not. It's a final tax deducted by your bank.

Do I still need to file a tax return?+

Yes. File your return every year to stay on the Active Taxpayer List (ATL). If you're not on the ATL, banks can deduct more.

How do I register with PSEB?+

Apply online on the PSEB website as an individual freelancer. You'll need your CNIC and proof of your freelance work, such as profile links.

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