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

Income period

ATL status

Export category

PSEB status

2 Export receipts

Input currency

PKR exchange rate

Gross export receiptsEnter the amount actually realized through normal banking channels.

Banking-channel condition met
Foreign proceeds are received in Pakistan through normal banking channels with appropriate realization evidence.

Return-filing and prescribed compliance conditions met
This affects whether the section 154A collection is treated as final tax.

3 Local freelance/business income

Local gross receipts (PKR)

Allowable business expenses (PKR)

Adjustable tax already paid (PKR)

Section 154A tax deducted (PKR)

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.