Question for Pakistani freelancers regarding Taxes

[ahsan16ali]

Hi guys - I've got a couple of questions regarding paying taxes in Pakistan. As far as I know, income from IT export is not taxable in Pakistan as long as you bring 80% back to the country? I believe they give you tax credit according to the latest rules? What documents do you need to prove that your income is from IT exports. Is the earning certificate from Upwork is enough?

There is one issue with Payoneer. When you make a withdrawal via Payoneer, it shows as a local bank transaction in your account. They have some kind of arrangement with Jazz and the last payment I received was from the Bank Alfalah account to my Meezan account.

Is anyone of you is paying taxes? What is your procedure for filing taxes and what are the latest developments in this regard?

[imyounas]

Hi Ahsan,

As per new Tax Law changes regarding IT Exports. It is required to file Sales Tax and WithHolding statements with regualr Tax Returns if your are doing Freelancing. But there is still confusion that is it applicable from this year or year 2022. As there has not been any modifications in IRIS regarding this change and Sales Tax Registeration form is also asking for company related documents. 

So its still not clear, may be some other members from Pakistan residence can share information ?

Regards,

Imran