You’ve just received your first payment from Upwork, and your bank has taken a portion.
This is tax. How much you lose is dependent on the documentation you have. Here is where you can start with Freelancer NTN Registration.
It’s free! You can do it on your mobile phone.
1. Income Tax Advantages for Freelancers & IT Exporters in Pakistan
Any money you make on Fiverr, Upwork, or directly with foreign clients is considered income within Pakistan. With an NTN, you are documenting this income with the Federal Board of Revenue.
Without an NTN, you cannot file a return and will not be a filer.
Low tax on IT Exports
Any income from exporting software/IT Enabled Services are covered under section 154A of the Income Tax Ordinance 2001. When you receive foreign currency into your account, your bank will deduct the tax.
Tax Rate
- Registered with PSEB: 0.25%
- Not registered with PSEB: 1%
This is massively less than the standard income tax brackets. For example, PKR 6,000,000 on export income will only have PKR15,000 (0.25%) taken out, or PKR60,000 (1%) taken out.
There will be tax due on your income.
PSEB require you to have an NTN registered in order to register with them. This means you will be getting the lowest possible tax rate.
Other advantages to having an NTN:
- Banks – Often request you to have an NTN registered when opening a business/exporter account.
- Documentation – Documents your payments are coming from an declared income source.
- Filer – Allows you to file a return and become a filer.
- Reputation – Sometimes requested by clients/agencies on contracts/invoices.
Banks have different rules so check with your bank about freelancer or foreign currency accounts.
Not Fully Covered
YouTubers, TikTokers and other content creators will have different rules relating to social media taxes. They will need an NTN but may not qualify for the IT Export rate.
2. Freelancer NTN Registration Requirements
Gather the following before starting. This will help speed up the whole process.
- Valid CNIC/NICOP
- Mobile Number registered to your CNIC
- Active Email Address (Only you have access to)
- Proof of Address (Recent bill or Tenancy Agreement)
Have the following ready:
- Current Address (Home/Business)
- Bank Account Details (IBAN)
- Brief Description of what you do (Web dev, Graphic Design etc.)
Common Issues
Most commonly people will have a SIM registered under their parent or spouse. This will mean you will not receive the verification code and may even be rejected.
Name Mismatch – Type your name exactly as it appears on your CNIC.
3. Freelancer NTN Registration Steps (FBR Iris Portal)
The Iris portal will have varying screens. You may not have the exact wording shown below however it will follow the same steps.
Step 1: Registration Screen
Go to the FBR Iris Portal (iris.fbr.gov.pk) and click Registration for Unregistered Person.
Step 2: Fill in details
Type in your CNIC, Prefix, Full Name, Mobile Network, Mobile Number and Email Address.
Double check all fields and click submit. This will generate your verification codes.
Step 3: Verification Codes
You will receive 1 code via SMS and 1 via your email. Enter these quickly as they will expire.
You will then receive your login password from FBR. Enter your CNIC as your User ID and change your password.
Step 4: Add Business Activity
Click on Form 181 (Registration Application). This will be found in your Drafts folder. Fill in your personal and contact details.
Next add in your Freelance details.
- Business Name – Most people will type their name + Freelancing Services.
- Business Activity – Choose the option that best fits your work (Software Development, IT Enabled Services etc.)
- Bank Account – Enter your IBAN.
Be careful to choose the right activity. This will let the FBR know what type of income to expect from you.
Step 5: Final Submission
Enter your address and property details. If you rent you will need to enter your landlords details.
Attach any documents requested. Click Submit.
You will often get approved quickly however it can take a few working days if they need more information.
As an individual your CNIC will be your registration number. You can download your NTN Certificate from the Iris portal. Or print off your registration details from FBR’s online verification.
4. Going from NTN Registration to Active Taxpayer List
Many people make the mistake of registering an NTN and then relaxing thinking they are now filers.
They are not!
Having an NTN simply means you are registered. The Active Taxpayer List is for people who have filed.
To become an active taxpayer you need to submit:
- Annual Income Tax Return
- Wealth Statement (Bank Accounts, Assets & Liabilities)
Under the heading 154A you need to declare your export income. This will allow you to claim the tax that your bank have taken out on your behalf. Your bank can provide you with a certificate showing these amounts.
If you missed the deadline:
The deadline to file for Tax Year 2026 as an individual was October 31st 2026. You can still file however late filers will now pay a PKR25,000 surcharge to become a filer, in addition to the late filing penalty.
If you register an NTN today, this will not remove your previous responsibility. If you earned taxable income last year you should seek advice.
Steps to take:
- Register your NTN
- Submit an application to PSEB so your bank will take 0.25% tax.
- Provide your bank with your PSEB certificate. Confirm your payments have the correct IT Export purpose code.
- Receive your bank’s Proceeds Realization Certificates and tax deduction certificate.
- File your return and Wealth Statement on time each year.
Often people miss step 3. If your payments are being coded as Personal Remittances they may not be seen as exports at all. The FBR may charge you tax at standard rates.
Let TaxAccountant.pk Handle It For You
All of this can be done yourself however many freelancers would prefer to use this time working with their clients.
We can handle your NTN registration, PSEB Application, Return Filing and Wealth Statement for you. Everything can be organised via WhatsApp. Simply send us your documents and we can take it from there.
