Filing taxes in Pakistan as a remote worker / freelancer/ contractor

[Sameer-Naseer]

Hello - Does anyone have prior experience on the subject?

I have heard opposite answers to this topic that range from:

1) There are no taxes on 'foreign remittance'.

all the way to

2) In essence, it is a salary from an entity registered outside of Pakistan. So, there must be a taxable amount. These are earnings and not 'foreign remittance'.

I intend to file taxes in the coming months and would appreciate knowledge from the community, thanks.

[daryldy]

Hi @Sameer-Naseer ,

From my understanding, any worldwide income a remote worker receives is considered personal income with tax obligations. 

I found this article from PWC that explains Pakistan tax obligations pretty succinctly. Basically, you would need to refer to the second table to determine your tax obligation if your earnings are completely sourced outside of Pakistan. Any income sourced within Pakistan is considered a salary and would need to be calculated in the first table. We also have a take home pay calculator that will break down your tax obligations as well. Just put in your monthly or annual income, select Pakistan, and click calculate.

As with any advice, consulting with a tax advisor and doing your due diligence is best.
Hope this helps!

[hussainkhan]

How is it going now sameer?

[aimalrehman92]

Hello Sameer,
I am facing the same situation. How did it turn out for you eventually?

[asimkhan]

In my opinion remittance means the foreign income while some also says that when your earning come from outside of Pakistan what ever the country is also called remittances. Now I am not sure, i am here in uk if i transfer cash to my pak account then it will be foreign remittance and there will be no tax if your income is not exceeding from 50Million. More i will talk to my chartered tax advisor here in uk then will explain more. wait for my next reply thanks

[UsamaDev]

@Sameer-Naseer I don't have direct experience with this, but I'd suggest consulting a tax professional since opinions on this topic seem to vary widely. Good luck with your filing!