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Freelance, IT & Export Tax Calculator
Estimate tax on qualifying foreign service receipts under section 154A and separately estimate tax on local freelance business income. Updated for Tax Year 2027 (1 July 2026 to 30 June 2027).
Enter your income details
Use gross receipts before platform fees, bank charges or business expenses for export turnover.
1 Taxpayer profile
2 Export receipts
Enter the amount actually realized through normal banking channels.
3 Local freelance/business income
Rates used
- 0.25% for qualifying PSEB-registered/certified IT and ITeS export receipts.
- 1% for other qualifying export-of-services receipts or IT/ITeS without the PSEB concession.
- For a person not on ATL, the calculator applies double the relevant withholding rate.
What it separates
Foreign-client export receipts are calculated on gross realization. Local-client receipts are treated separately as business income after allowable expenses and calculated using the applicable non-salaried individual slabs.
Records to retain
- PSEB registration/certification
- Bank statement and PRC/e-PRC
- Client invoices and contracts
- Platform statements and fee records
- Tax deduction certificate and filed return
Legal basis and FBR references
| Provision | Purpose in this calculator |
|---|---|
| Section 18 | Freelance and professional receipts may constitute income from business. |
| Sections 20 and 21 | General rules for business deductions and inadmissible expenses. |
| Section 114 | Income-tax return filing. |
| Section 154A | Collection of tax on export-of-services proceeds and final-tax conditions. |
| First Schedule, Division IVA, Part III | Applicable section 154A rates, including the concessional IT/ITeS export rate. |
| Tenth Schedule, Rule 1 | Enhanced withholding rate for persons not appearing on ATL, where applicable. |
| Section 4AB / First Schedule | Business-individual surcharge logic where taxable income exceeds the statutory threshold. |
Important eligibility note
The 0.25% option is not selected merely because work was performed online. The receipt should qualify as export of computer software, IT services or IT-enabled services and the prescribed PSEB, banking, return-filing and other legal conditions must be satisfied. Otherwise, the 1% export-services rate or normal business-income treatment may apply depending on the facts.
What is excluded from this calculator?
Provincial sales tax on services, foreign tax credit, minimum tax outside section 154A, corporate/AOP normal-tax calculations, super tax under section 4C, capital gains, salary, property income, and fact-specific exemptions are not automatically calculated. Obtain professional advice for mixed or complex cases.
Official FBR Income Tax Ordinance page • Pakistan Software Export Board
Disclaimer: This calculator is an educational estimator based on the Income Tax Ordinance, 2001 as amended up to 30 June 2026 for Tax Year 2027. Tax treatment depends on the nature of services, taxpayer status, documentation, remittance route and compliance. The law and FBR interpretation prevail.