How to File Freelance Income Tax in Pakistan – Step-by-Step Guide (2025)
Freelancing is booming in Pakistan. From graphic design to content writing and digital marketing, thousands of Pakistanis now earn online. But when it comes to paying income tax, many freelancers feel confused or unsure. In this guide, we’ll walk you through how to file freelance income tax in Pakistan, step by step, in 2025.
📌 Who Needs to File Tax?
If you're a Pakistani citizen earning money through freelancing—on platforms like Fiverr, Upwork, Freelancer.com, or even direct clients—you are legally required to file taxes if your income exceeds PKR 600,000 per year.
✅ Benefits of Tax Filing for Freelancers
- Your name appears in the Active Taxpayer List (ATL)
- You get lower withholding tax on banking transactions
- It helps you apply for visas, loans, and credit cards
- You stay legally protected from FBR penalties
🧾 Step-by-Step Tax Filing Process for Freelancers
Step 1: Register on FBR IRIS
Go to the FBR IRIS portal. Create an account by selecting “Registration for Unregistered Person”. You’ll need your CNIC, phone number, and email.
Step 2: Get NTN (National Tax Number)
Once registered, you will receive your NTN through the IRIS system. It’s free and automatic after registration.
Step 3: Declare Your Income
Log in to IRIS, select “Income Tax Return” → “Declaration”. Add your yearly income in the section “Income from Other Sources” → “Foreign Income” (if earned via Fiverr, Upwork etc.).
Step 4: Attach Proof
Upload payment screenshots, Payoneer or Wise bank statements, and invoices if available.
Step 5: Submit Return
After declaring income, submit your return. If you owe tax, pay via your bank or internet banking app using PSID code generated in IRIS.
💡 Freelancing Tax Tips
- Open a separate bank account for freelance income
- Save your invoices and receipts
- Use tools like Taxolog or consult a tax consultant
- Always file before the deadline (usually September 30)
📉 How Much Tax Do Freelancers Pay?
The tax rate in Pakistan is progressive. For 2025, here’s a simplified view:
- Up to PKR 600,000/year – No tax
- PKR 600,001 to 1.2 million – 2.5%
- PKR 1.2M+ – Gradually increases up to 35%
🔐 What If I Don’t File Taxes?
Failure to file can result in:
- Hefty penalties (up to PKR 40,000)
- Being blacklisted by FBR
- Ineligibility for ATL benefits
📚 Frequently Asked Questions (FAQs)
Q1: Do Fiverr and Upwork earnings count as taxable?
Yes, all freelance income from international clients is taxable in Pakistan.
Q2: Do I need to show proof for each transaction?
It’s recommended. Use Payoneer, Wise, and bank statements to verify income.
Q3: Can students file freelance tax?
Yes, if their income exceeds PKR 600,000 annually.
Q4: Can I file tax without a consultant?
Yes, the FBR IRIS system is free. However, you can consult a tax expert for help.
Q5: What documents do I need to file tax?
Your CNIC, email, phone number, income summary, and payment proofs.
.jpeg)
.jfif)
.jfif)
){kind=link}
0 Comments