You’re earning in dollars, working with international clients, and building your freelance empire. But when it comes to taxes, you’ve probably heard a million different things: “It’s all tax-free,” “Just keep it in Payoneer,” or “Don’t register; the FBR will chase you.”
Let’s clear the air: most of that is bad (and expensive) advice.
In 2025, being an unregistered freelancer is a massive financial mistake. The government has created a simple, legal, and incredibly beneficial system for IT exporters. By not registering, you are literally choosing to pay more in taxes.
This guide will walk you through the two essential registrations every Pakistani freelancer must complete:
- FBR Registration: To get your National Tax Number (NTN).
- PSEB Registration: To get the massive 0.25% tax rate.
Don’t worry. It’s simple, and we’ll do it step-by-step.
Part 1: The “Why?” — A Simple Numbers Game
Before we start the “how,” let’s look at the “why.” Under the current (2025) tax law for exporters of IT and IT-enabled services (which includes all freelancers), your income is taxed in one of two ways:
- If you are NOT registered with the PSEB: Your foreign income is taxed at a 1% final rate.
- If you ARE registered with the PSEB: Your foreign income is taxed at a 0.25% final rate.
Let’s do the math on earning $2,000 (approx. PKR 560,000) in a month:
- Unregistered (1% tax): You pay PKR 5,600.
- Registered (0.25% tax): You pay PKR 1,400.
By registering, you just saved PKR 4,200 in a single month. Over a year, that’s over PKR 50,000 saved.
The small registration fee pays for itself in the first month. Registration isn’t a cost; it’s an investment.
Part 2: FBR Registration (Getting Your NTN)
Your National Tax Number (NTN) is your first step to becoming a legal business entity. If you are an individual freelancer, your CNIC number will become your NTN. If you earn over PKR 600,000 a year, this is mandatory.
What You’ll Need:
- Your CNIC and its issuance date.
- Your mobile number (registered to your own CNIC).
- A personal email address.
- A ‘Certificate of Maintenance of Personal Bank Account’ from your bank (just ask them for this; it’s a standard letter).
Step-by-Step Guide:
- Go to the official FBR IRIS portal:
iris.fbr.gov.pk - Click on “New Registration” (or “e-Enrollment” for individuals).
- Enter your CNIC, select your mobile operator (Jazz, Zong, etc.), and enter your mobile number (without the ‘0’ at the start, e.g., 300xxxxxxx).
- Enter the characters from the image (captcha) and click “Submit.”
- You will receive a 6-digit code via SMS on your phone and another code in your email.
- Enter both codes on the registration page to verify.
- Once verified, you will be taken to a form. Fill in all the details (your name, address, etc.).
- You will also need to attach the scanned copy of your Bank Maintenance Certificate.
- Submit the form.
Congratulations! You are now registered with the FBR. Your CNIC is your NTN, and you’re ready for the most important step.
Part 3: PSEB Registration (Unlocking the 0.25% Tax Rate)
This is the golden ticket. The Pakistan Software Export Board (PSEB) is the government body that certifies you as a legal IT exporter, which is what qualifies you for the 0.25% tax.
What You’ll Need:
- Your NTN Certificate (which you just got from the FBR).
- A Bank Account Maintenance Certificate (Form-R). This is the same one you used for the FBR.
- Evidence of Income: This is crucial. Get screenshots of your Payoneer/Upwork/Fiverr income statements, client invoices, or bank statements showing foreign remittances.
- Your CNIC (scanned copy).
- A registration fee. (This is a one-time fee of approx. PKR 5,000 and an annual renewal fee of approx. PKR 3,500. Note: Fees can change, so check the portal for the exact amount.)
Step-by-Step Guide:
- Go to the official PSEB portal:
portal.techdestination.com - Click on “Register as a Freelancer” or “New Registration.”
- Fill out the online application form. It will ask for your personal details, your FBR NTN, and information about your skills (e.in g., graphic design, web development).
- You will be prompted to upload your documents:
- CNIC Scan
- NTN Certificate
- Bank Maintenance Certificate
- Proof of Income (invoices, platform screenshots)
- Submit your application for initial review. The PSEB team will verify your documents.
- Once approved, you will be asked to pay the registration fee. You can usually do this online.
- After you submit proof of payment, PSEB will verify it and issue your official PSEB Registration Certificate.
Conclusion: You Are Now a Registered Professional
That’s it. You are no longer just a “freelancer”; you are a registered Pakistani IT Exporter.
By taking these two simple steps, you have:
- Secured the lowest possible tax rate (0.25%) on your hard-earned dollars.
- Gained legal status, which builds trust with international clients.
- Positioned yourself to access other government benefits, like training and incentives.
This is the single best business decision you will make this year.
Here’s a video with insights on PSEB registration and its benefits for freelancers.