What is the tax rate on IT and software exports in Pakistan?

The commonly cited figures are a 0.25% concessionary rate for PSEB-registered exporters and a 1% standard rate otherwise, charged as a final tax on export proceeds received through the banking channel. These rates and their conditions are set by the Finance Act, so confirm the current applicability before relying on them.

Do I need PSEB registration for the concessionary IT-export rate?

PSEB registration is generally the condition that unlocks the lower concessionary rate on IT and IT-enabled services export proceeds. You also need to receive earnings through the banking channel with documented repatriation. Check the current PSEB and Finance Act conditions.

Is IT export income still exempt under §65F?

The exemption framework that people associate with §65F has changed across recent Finance Acts and moved toward a concessionary final-tax model rather than a blanket exemption. Do not assume a past year's exemption still applies — check the current applicability for your tax year.

What records should an IT exporter keep?

Keep bank credit advices, Proceeds Realisation Certificates / remittance confirmations, contracts, invoices, and your PSEB registration. These prove the earnings arrived through the banking channel and qualify for the export treatment.

For IT exporters

IT & IT-Export Tax in Pakistan

Software houses, SaaS, and IT-enabled services exporting from Pakistan get a concessionary tax rate. Here is how it works and what conditions apply.

Pakistan deliberately taxes the export of IT and IT-enabled services lightly to grow the sector. If your company or sole-proprietorship earns revenue by exporting software, SaaS, or IT-enabled services, your export proceeds are taxed at a concessionary rate rather than the ordinary business slabs — provided you meet the conditions.

The concessionary rate and PSEB

The headline figures usually quoted are a 0.25% concessionary rate for exporters who are registered with PSEB and a 1% standard rate otherwise, applied as a final tax on export proceeds. Registering with the Pakistan Software Export Board, and receiving your earnings through the proper banking channel with documented repatriation, are the conditions that typically apply. Treat the exact rate as "check the current applicability" — it is governed by the Finance Act and the relevant notifications, which change.

Banking-channel and repatriation conditions

The favourable treatment is tied to the foreign exchange actually coming into Pakistan through a bank, and to repatriation of the export earnings. Keep your bank credit advices, PRC/remittance confirmations, and PSEB records. The historic exemption framework people associate with §65F has evolved over successive Finance Acts — check the current applicability rather than assuming a past year's exemption still stands.

What to do

Register the entity for an NTN and PSEB, get on the ATL / filer status, route revenue through the banking channel, and file. Use the tax calculator to estimate where you land.

Estimate your income tax

Add each source of income — we total your tax, refund, or amount payable.

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Add an income amount above to see your estimate.

Frequently asked questions

What is the tax rate on IT and software exports in Pakistan?: The commonly cited figures are a 0.25% concessionary rate for PSEB-registered exporters and a 1% standard rate otherwise, charged as a final tax on export proceeds received through the banking channel. These rates and their conditions are set by the Finance Act, so confirm the current applicability before relying on them.
Do I need PSEB registration for the concessionary IT-export rate?: PSEB registration is generally the condition that unlocks the lower concessionary rate on IT and IT-enabled services export proceeds. You also need to receive earnings through the banking channel with documented repatriation. Check the current PSEB and Finance Act conditions.
Is IT export income still exempt under §65F?: The exemption framework that people associate with §65F has changed across recent Finance Acts and moved toward a concessionary final-tax model rather than a blanket exemption. Do not assume a past year's exemption still applies — check the current applicability for your tax year.
What records should an IT exporter keep?: Keep bank credit advices, Proceeds Realisation Certificates / remittance confirmations, contracts, invoices, and your PSEB registration. These prove the earnings arrived through the banking channel and qualify for the export treatment.

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Estimates and general information only — not tax, legal, or financial advice. Filer.pk is not affiliated with, endorsed by, or operated by the FBR, and does not file your return on IRIS. Verify with FBR/IRIS or a qualified professional before filing.