Freelancers
Freelancer Tax Guide Pakistan 2025: How to Declare Upwork & Fiverr Income
As a Pakistani freelancer, you are legally required to declare your foreign income in your annual tax return. Here's what you need to know.
Are freelancers taxed in Pakistan?
Yes. Freelance income — whether from Upwork, Fiverr, Toptal, or any direct client — is taxable in Pakistan. However, Pakistan has a preferential tax rate for IT exporters.
IT export income tax rate:
For income earned from IT services exported out of Pakistan, the FBR currently applies a 0.25% final tax (previously 1%) on remittances received through banking channels.
Requirements to qualify for the preferential rate:
- The income must be remitted through a Pakistani bank account
- You must be registered with PSEB (Pakistan Software Export Board)
- The income must be for IT services
Steps to file your freelancer return:
1. Get NTN if you don't have one
2. Declare your total foreign income
3. Apply the applicable tax rate
4. Submit through FBR IRIS
Our Freelancer plan (Rs. 7,500) covers all of this for you.
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Are freelancers taxed in Pakistan?
Yes. Freelance income — whether from Upwork, Fiverr, Toptal, or any direct client — is taxable in Pakistan. However, Pakistan has a preferential tax rate for IT exporters.
IT export income tax rate:
For income earned from IT services exported out of Pakistan, the FBR currently applies a 0.25% final tax (previously 1%) on remittances received through banking channels.
Requirements to qualify for the preferential rate:
- The income must be remitted through a Pakistani bank account
- You must be registered with PSEB (Pakistan Software Export Board)
- The income must be for IT services
Steps to file your freelancer return:
1. Get NTN if you don't have one
2. Declare your total foreign income
3. Apply the applicable tax rate
4. Submit through FBR IRIS
Our Freelancer plan (Rs. 7,500) covers all of this for you.