GenzeeFreelancers Keep the 0.25% Tax Rate on Foreign Income Through 2029
Pakistan's roughly one million IT freelancers got a piece of good news in this year's budget: the Finance Bill 2026-27 extended the preferential 0.25% final tax rate on foreign remittances for PSEB-registered freelancers and IT exporters through to 2029.
What stays the same, and for how long
As reported by Business Recorder, freelancers and IT exporters had lobbied ahead of the budget to keep the Final Tax Regime rate at 0.25% rather than see it lapse or rise, and the government agreed to maintain it. Under the scheme, banks automatically deduct 0.25% at source when a foreign client payment lands in a PSEB-registered freelancer's account through approved channels — Pakistani banks, or services like Payoneer and Wise linked to a local account — and that deduction is the final tax liability, with no further income tax due on that income.
Why registration is worth the paperwork
Freelancers who are not PSEB-registered, or who bring money in through informal channels, generally face a 1% rate instead and lose access to some of the exemptions built into the scheme. Business Recorder quoted industry groups welcoming the continuity as a confidence boost for export earnings.
Use our Salary Tax Calculator to compare how the freelance final-tax route stacks up against ordinary salaried tax slabs.
Note: This is a plain-language summary, not tax/financial advice. Rates and rules can change; verify your specific case with the relevant authority or a qualified professional. See our editorial policy for how we source and date these updates.