PSEB IT Export Tax
PSEB Tax Calculator
See exactly how PSEB registration affects your withholding tax on IT export proceeds. Compare the 0.25% concessionary rate against the 1% default and calculate your actual savings.
PSEB Registered vs Non-Registered
With PSEB Registration
- -0.25% flat final withholding tax
- -Final Tax Regime (no further tax computation needed)
- -Access to PSEB training and subsidized workspaces
- -Official government recognition as IT exporter
Without PSEB Registration
- -1% default withholding tax
- -4x higher withholding than PSEB rate
- -No access to PSEB benefits and programs
- -Still required to file annual FBR return
Related PSEB and tax resources
PSEB Tax FAQ
Q.What is PSEB and why does it matter for tax?
The Pakistan Software Export Board (PSEB) is the government body facilitating IT exports. Freelancers registered with PSEB qualify for a reduced 0.25% final withholding tax rate on IT export proceeds under Section 154A, compared to the 1% default for unregistered exporters.
Q.How much can I save with PSEB registration?
PSEB registration reduces your withholding tax from 1% to 0.25% on foreign IT export proceeds - a 75% reduction. For a freelancer earning $2,000/month, this means saving approximately $15/month or $180/year in withholding tax alone.
Q.Does PSEB registration affect my local PKR income tax?
No. PSEB registration specifically impacts the withholding tax on foreign currency remittances received through banking channels for IT/ITES services. Local PKR income from Pakistani clients is still taxed under standard FBR progressive slabs.
Q.What services qualify for the PSEB concessionary tax rate?
Qualifying services include software development, web development, mobile app development, graphic design, SEO, content writing, video editing, virtual assistance, data entry, call center services, and other IT-enabled services (ITES).
Q.How do I register with PSEB?
Registration is done online through the PSEB portal. You need a valid CNIC, NTN certificate from FBR, a bank certificate confirming your freelancer account, and proof of foreign remittances (such as Upwork/Fiverr invoices or bank statements).