Freelancer Tax Calculator Pakistan 2024-25
Calculate your tax as a Pakistani freelancer. Foreign remittance earners pay only 1% FTR. Handles Upwork, Fiverr, and local client income.
How Freelancer Tax Works in Pakistan
Pakistani freelancers enjoy one of the most favorable tax treatments in the country. **The 1% Final Tax Rate (FTR):** Under Finance Act 2024, IT services and IT-enabled services exported from Pakistan are taxed at only 1% of gross receipts — provided payment is received through Pakistan's banking system. This is a "final tax," meaning no further tax liability. **Who qualifies for 1% FTR:** - Freelancers on Upwork, Fiverr, Toptal, and similar platforms - Payment received via bank transfer, Payoneer (linked to bank), or Wise - Must be a registered filer on FBR's Active Taxpayer List (ATL) **Non-filers pay much more:** Non-filers cannot claim the 1% FTR. They face standard withholding rates and cannot benefit from this provision. Filing your annual return costs very little and saves significant tax. **Pakistani clients:** Income from local (Pakistani) clients is taxed at normal progressive slab rates — the same as salaried income tax. This calculator handles mixed income scenarios with a percentage slider. **How to become a filer:** Register on IRIS portal (iris.fbr.gov.pk), get your NTN, and file an annual return. Once on the Active Taxpayer List, you're a filer.
Freelancer Tax Rates 2024-25
| Income Type | Filer Rate | Non-Filer Rate |
|---|---|---|
| Foreign remittance (banking) | 1% FTR (Final) | Higher withholding + penalties |
| Pakistani clients | Progressive slabs (5–35%) | Double the filer rate |