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Toolbench

Pakistan freelancer & IT export tax calculator

Calculate FBR Section 154A tax on IT exports: 0.25% PSEB registered and 1% non-registered with bank foreign remittance withholding in PKR.

In your browser

Rs
Net Take-Home Remittance
/ month
Withholding Tax
Gross Monthly

Monthly Tax Withheld

Annual Gross

Annual Tax Liability

Income Tax Ordinance 2001 (Section 154A): Tax deducted by commercial banks on foreign remittances from IT and IT-enabled services (ITeS) is treated as a Final Tax Regime (FTR) liability: 0.25% if registered with PSEB and income tax returns are filed, and 1% otherwise.

About this tool

Calculate your income tax liability on IT and IT-enabled services (ITeS) export remittances under FBR Section 154A of the Income Tax Ordinance 2001. Compare the 0.25% Final Tax Regime (FTR) rate for PSEB registered freelancers and companies against the 1% non-registered withholding rate.

How to use it

  1. 1 Enter your gross foreign exchange export earnings in USD or PKR.
  2. 2 Select whether you are registered with the Pakistan Software Export Board (PSEB).
  3. 3 View bank withholding deduction, net bank credit, and annual tax liability.

Questions

What is the tax rate on IT exports in Pakistan?

Under Section 154A, foreign remittances received from IT and ITeS exports are taxed at 0.25% as Final Tax if registered with PSEB and filing returns, or 1% if not registered.

Is sales tax applicable on IT export services in Pakistan?

No. Export of software development and IT services from Pakistan is zero-rated / exempt from provincial sales tax.

Is my data uploaded?

No. This tool runs in your browser, so your text and files never reach our server.

Is this tool free?

Yes. It’s free to use with no sign-up and no limits for normal use.