Freelancer Tax Calculator
Estimate the final tax on your exported IT/ITeS or other services under Section 154A — with the PSEB reduced rate, the non-filer penalty, and how much registering with PSEB would save you.
Final tax under §154A
Income after tax
Rs 3,564,000
Monthly after tax
Rs 297,000
Register with PSEB to save Rs 27,000/year
Your rate would drop from 1.00% to 0.25%.
Breakdown
How it works
Section 154A imposes a final tax on the export of services, deducted when your foreign earnings arrive through official banking channels.
- IT / ITeS, PSEB-registered filer: 0.25%
- IT / ITeS, non-PSEB filer: 1%
- Other exported services: 1% (no PSEB tier)
- Non-filers: the applicable rate is doubled.
Official sources
Frequently asked questions
What tax do freelancers pay in Pakistan?
Freelancers exporting IT/ITeS services pay a final tax under §154A: 0.25% if registered with PSEB, otherwise 1%. Other exported services pay 1%. Non-filers pay double.
How does PSEB registration reduce my tax?
For IT/ITeS exporters, PSEB registration lowers the §154A rate from 1% to 0.25% — a 4× reduction. The calculator shows exactly how much you would save.
Is this a final tax?
Yes. §154A on exported services is a final tax collected on your foreign remittances through your bank, provided proceeds come through official banking channels.
Why do non-filers pay double?
Pakistan applies higher withholding rates to people not on the Active Taxpayers List (ATL) to encourage filing. Being a filer halves your §154A rate.
Estimate for exporters receiving proceeds through banking channels. Actual withholding depends on your bank and filer status. Confirm with FBR or a tax advisor.