National Freelancing Policy
Coming soon!
Freelancing has become a way of life for many, and the government finally noticed it in the National Freelancing Policy.
The National Freelancing Policy offers a lower sales tax rate, capped at a maximum of two percent, for freelancers registered with the Pakistan Software Export Board (PSEB) for their local service earnings.
Prominent Features of the National Freelancing Policy
The Pakistan Software Export Board (PSEB) will allow freelancers to register for Rs1,000 and renew their registration for Rs3,500 annually.
Registered freelancers will receive income tax exemption on their export earnings until 2030. However, their income must be received through formal banking channels and using specific purpose codes assigned by the SBP.
The Pakistan Software Export Board (PSEB) will collaborate with the State Bank of Pakistan (SBP) to simplify receiving money from foreign freelancing work.
The SBP will create special codes for freelancers, which will be exempt from income tax.
Freelancers can open foreign currency bank accounts to receive foreign money. Freelancers can keep 35 percent of their foreign income in these bank accounts.
Freelancers who receive foreign money using the designated freelancing codes will be exempt from income tax until 2030.
Freelancers earning at least $5,000 per year for two years through official banking channels will get visa facilitation services.
Registered freelancers who can show a record of earning more than $12,000 per year for five years will be eligible for discounted home loans.
Registered freelancers can participate in free or discounted training programs and obtain certifications. They will also be able to use subsidized office spaces available at Software Technology Parks (STPs) throughout the country.
Registered freelancers will be provided with opportunities for international marketing and matchmaking.
The PSEB will set up a special help desk for freelancers in the Software Technology Parks. This desk will assist freelancers with various issues, such as registration, taxes, banking, intellectual property (IP) rights, voice-over IP (VoIP) whitelisting, etc.
The government will make it easier for freelancers with a minimum of three years of IT export earnings exceeding $5,000 per year through official banking channels to obtain visas.
Registered freelancers will be able to get discounted loans. These loans will be up to Rs1.0 million and won’t require collateral.
Registered freelancers will receive discounted health, life, and employee liability insurance.