In Pakistan, filing taxes might seem like a daunting task for freelancers. However, to stay out of trouble with the law and avoid penalties, it’s essential to file your taxes accurately and timely.
If you are feeling lost in the maze of freelance taxes in Pakistan, you are not alone, so don’t worry! With Befiler’s expert step-by-step guide, you can easily navigate through the process and find yourself an instant pro in freelancers’ taxes.
So hold your breath, Freelancers! Here we go to make things easy for you.
Your First Priority: ‘Be Aware of Your Tax Bracket’
Services Being Exported? You’re Fortunate!
Due to its 1% tax rate reduction for freelancers exporting services, Pakistan is now a competitive choice for clients globally.
Registered with the PSEB? Better Still!
You benefit greatly from a further tax rate reduction to just 0.25%.
Serving Clients Across Pakistan?
The standard individual tax slabs are applicable, with rates varying from 5% to 35% based on your income.
Next Up, Get Ready For Returns Filing
Obtain an NTN (National Tax Number)
Register online through Stay filer web portal.This NTN is your tax ID.
Monitor Your Earnings and Expenses
To guarantee precise calculations, maintain thorough records of each transaction.
Select Returns Filing Method
For your convenience, go digital and file online using the Stay filers web portal
Now It’s Time To Do Some Math.
Figure Out Your Taxable Income
First, figure out how much income you need to pay tax on. Next, subtract expenses you can deduct from this total income.
Special Deductions
Remember, you might be able to use some special deductions depending on the type of work you do.
Use the Correct Tax Rate
To pay the right amount of tax, you need to use the correct tax rate. You can find the rate that applies to you in the information we talked about earlier.
Lastly, Submit Your Tax Returns & Make Payment
- Due Date
The due date is set in the third quarter every year! Submit your return by September 30th of each year to avoid penalties.
- Seamless Transaction
For a seamless transaction when making tax payments, use approved banks or online payment methods.
Law requires you to file your taxes accurately and on time, which also supports Pakistan’s development. When you fulfill your civic responsibilities, you help build a better future for everyone.
Stay Filer offers taxation and compliance services. If you want to file your tax returns, launch an LLC, or open a bank account, look no further than Stay Filer.
FAQ`s
1. What is the tax rate for freelancers in Pakistan?
Freelancers exporting services benefit from a 1% tax rate reduction. Those registered with the PSEB enjoy a further reduction to 0.25%.
2. How do I obtain a National Tax Number (NTN)?
You can obtain an NTN by registering online through Stay Filer’s web portal.
3. What is the deadline for filing tax returns in Pakistan?
The deadline for filing tax returns is September 30th of each year.
4. Can I file my tax returns online?
Yes, you can file your tax returns online using Stay Filer’s web portal or mobile app.
5. What should I do if I need help with filing my taxes?
Stay Filer offers comprehensive taxation and compliance services to help you file your taxes accurately and timely.
