Pakistan has over two million freelancers, and FBR has become much better at matching bank remittances to tax records. These tips will keep you compliant and help you pay the lowest lawful tax.
- Register your NTN as an IT or IT-enabled services exporter, not just as an individual.
- Bring money in through official banking channels (bank, Payoneer to bank, Wise) so it qualifies for the export regime.
- Register with PSEB to reduce the final tax on exports to 0.25%.
- Keep a separate bank account for business receipts.
- Keep Proceeds Realisation Certificates (PRCs) or bank remittance advice for every inflow.
- File your return every year, declaring export income under the correct section and local income separately.
- Reconcile your wealth statement with your actual bank balances and assets to avoid notices.
When to form a company
Once you hire a team, sign contracts with foreign clients or want to raise investment, an SMC or Private Limited company gives you credibility and limited liability. We can set it up alongside your PSEB registration.
