Today, we are going to take you through the process of how to file tax returns for freelancers in Pakistan. Freelancing is rising to the main stage quickly. Moreover, there are a lot of freelancers in Pakistan making loads of cash. Pakistani governments of the past didn’t recognize freelancing as a proper job. However, in this digital era, the Government of Pakistan now recognizes freelancing as a huge industry. Therefore, taxes are also imposed on freelancers.
How To File Tax Returns In Pakistan For Freelancers
The Federal Board of Revenue (FBR) has tried to make the process as easy as possible. The whole process is online and you can do it for free from your home.
- Firstly, open the FBR website.
- Amongst different options, select the portal, IRIS.
- Now, choose your location.
- Register yourself on the portal.
- For logging in, you’ll need to use your CNIC as user ID and password that you’ll receive from FBR via e-mail.
- In the declaration tab, select normal return.
- Type the year the return is for and choose the provided option.
- Enter your annual salary details.
- In addition, enter other income like bank profit.
- In the Adjustable Taxes tab, enter any taxes that your company deducts from your salary.
- Add personal assets and expenses in the wealth statement.
- Choose the business tab.
- Wholesalers and Retailers can choose the manufacturing and trading section. For other category freelancers, choose the ‘other revenue’ section.
- Choose the ‘management administrative expenses’ tab to add rent, salaries, and other expenses.
- The tax now calculated will show the difference as taxable income.
- Lastly, reconcile with the wealth statement.
Zero Tax For Freelancers Working In IT Segment
PM Imran Khan has announced great news for freelancers. The government recognizes the technology revolution. Moreover, the government urges the youth to benefit from the IT revolution. Therefore, they have announced a zero tax rate for freelancers in the IT sector. Prime Minister thinks that the youth of the country has a great talent to excel in the IT sector eventually becoming millionaires at such a young age.