Pakistan Freelancer Tax Calculator
Calculate export withholding tax under official FBR Rate Cards (Section 154A of the Income Tax Ordinance, 2001).
Updated in accordance with the official FBR Withholding Tax Rate Card for Tax Year 2027 (Finance Act 2026). When foreign exchange remittances are realized through banking channels, your commercial bank deducts tax at source based on your income category, filer status, and PSEB registration.
Foreign exchange remittance amount received via banking channel
Conversion rate applied by your receiving commercial bank
Estimated net proceeds
0.25% concessionary rate for active IT/ITES exporters registered with PSEB with required returns filed. Deducted at source by bank upon realization of export proceeds, treated as Final Tax liability.
How export withholding tax works in Pakistan
Under Section 154A of the Income Tax Ordinance, 2001, authorized dealers (banks) realize foreign exchange proceeds from the export of computer software or IT-enabled services and deduct tax at source at the time of realization.
Worked example (IT Exporter with PSEB):
For an active filer receiving $2,000 USD in IT export proceeds via Payoneer/bank transfer at PKR 278.50 per USD:
- Gross proceeds realized: $2,000 × 278.50 = PKR 557,000
- Withholding tax rate (Section 154A(2)): 0.25%
- Tax deducted at source by bank: PKR 557,000 × 0.25% = PKR 1,392.50 ($5.00)
- Net proceeds credited to account: PKR 555,607.50 ($1,995.00)
- Tax nature: Final Tax Regime (no further income tax liability on this export revenue).
Formula: Withholding Amount = Gross Proceeds Realized × (Applicable Rate / 100)
Final Tax vs. Adjustable Tax:
For IT/ITES exporters who maintain active PSEB registration, timely file income tax returns, and file sales tax returns with provincial revenue authorities, the 0.25% deduction is treated as a final tax under Section 154A(2). For other categories or non-filers, deductions may serve as minimum or adjustable tax against annual tax returns.
Official government source: FBR Withholding Tax Rate Cards (Tax Year 2027). Always consult an authorized chartered accountant (ICAP) or tax consultant for your annual tax declarations.
FBR Section 154A Withholding Tax Rate Card
| Income Category | Eligibility & Status | Rate | Regime |
|---|---|---|---|
| IT & IT-enabled Services (Computer Software, BPO, Coding) | Active ATL + PSEB Registered + Sales Tax Compliant | 0.25% | Final Tax Regime (Section 154A(2)) |
| IT & IT-enabled Services | Active ATL (Without PSEB registration) | 1.00% | Minimum / Adjustable Tax |
| Other Export Services (Consultancy, Marketing, Accounting) | Active ATL | 1.00% | Minimum / Adjustable Tax |
| Export of any Services (IT or Other) | Inactive Taxpayer / Non-Filer | 2.00% | Adjustable Tax (Tenth Schedule 100% surcharge) |
| Domestic Services (Local Pakistani clients) | Active / Non-Filer | 10% / 20% | Adjustable Withholding + Annual Slabs (Sec 153) |