Tax Year 2027

IT & IT-Enabled Services Tax Guide

Tax benefits, registrations and export compliance for Pakistan's IT and IT-enabled services companies and freelancers.

Key Tax Benefit

Final Tax on Export Proceeds Reduced to 0.25%

PSEB-registered IT/ITeS companies and freelancers can reduce their final tax on export proceeds to as low as 0.25%, subject to eligibility and export proceeds realization requirements. This benefit has been extended till 30 June 2029.

Register With PSEB โ€” Save Tax Legally
WITHOUT PSEB1%Final Tax
VS
WITH PSEB0.25%Final Tax
PSEB Registration

Why Register With PSEB?

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Lower Final Tax Rate

0.25% final tax rate on export proceeds, versus 1% for unregistered exporters.

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Export Recognition

Official recognition and government facilitation as an IT/ITeS export business.

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International Visibility & Credibility

Improves standing with foreign clients evaluating your business.

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Financing & Expansion

Easier access to financing and business expansion opportunities.

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Government Incentives

Eligible for other government incentives and training/support programs.

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Global Trust

Enhances business reputation and global trust with international partners.

Local vs. Foreign Revenue

Your Tax Position Changes With Your Client Base

Local Clients

  • โ€ข Normal income tax rates apply
  • โ€ข Sales tax may apply
  • โ€ข Monthly / annual compliance obligations
  • โ€ข Higher overall tax cost

Foreign Clients

  • โœ” Export of services classification
  • โœ” Preferential 0.25% tax regime (subject to eligibility)
  • โœ” Foreign remittance through banking channels
  • โœ” PSEB registration recommended for maximum tax benefit
Essential Registrations

Registrations & Their Benefits

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PSEB Registration

Access to 0.25% final tax regime, export recognition, training & government programs, and business growth support.

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Chamber of Commerce Registration

Enhances business credibility, networking, trade fairs & B2B opportunities, and facilitates visa & tender applications.

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Professional Tax Registration

Legal requirement for businesses & professionals, avoids penalties, and can mean lower tax rates for registered taxpayers.

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FBR Registration (NTN & ATL)

Legal obligation that enables you to file returns, access banking & business facilities, and builds financial credibility.

Documentation

Documents You Should Maintain

  • FBR & PSEB registrations
  • Bank Realization Certificates (BRCs)
  • Foreign invoices
  • Service agreements, contracts & SOWs
  • Accounting records
  • Income tax returns
  • Sales tax returns
Avoid These

Common Mistakes to Avoid

  • Not registering with PSEB
  • Receiving payments in personal accounts
  • No proper agreements or invoices
  • No accounting or record keeping
  • Late filing of tax returns
  • Incorrect tax classification
Maximize Your Benefit

Tips to Maximize Tax Benefits

Register With PSEB & Save More Every Year

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