IT Exporters & Freelancers: How to Claim 0.25% Reduced Tax Rate Under Section 154A
Pakistani software houses, IT exporters, and tech freelancers can pay a final concessionary tax rate of 0.25% on foreign export proceeds if PSEB registration conditions are met.
- Export proceeds must be received through formal banking channels in foreign exchange.
- Must be registered with Pakistan Software Export Board (PSEB) or P@SHA.
- Annual tax returns and monthly withholding statements must be filed on time.
Section 154A of the Income Tax Ordinance provides a reduced 0.25% final tax rate on foreign proceeds derived from export of computer software, IT services, or IT-enabled services (ITeS).
If mandatory PSEB registration or annual return filing is missed, FBR reclassifies IT exporters under normal corporate tax (29%) or individual business tax (up to 45%).
We guide IT companies through PSEB enrollment, State Bank R-Form reconciliation, and FBR return filing to ensure 100% tax credit protection.
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