Enhancing Freelance Careers: Incentives for Registered Freelancers in Pakistan

Freelancers who are formally registered with the Pakistan Software Export Board (PSEB) are eligible to get a sales tax reduction of up to 2% under a new policy that was recently introduced by the Ministry of Information Technology and Telecommunication (MoITT). This policy is known as the “National Freelancing Policy.”

The implementation of this program is intended to make Pakistan a leading player in the global freelance market and to boost the country’s earnings in foreign currency.

The PESB and the State Bank of Pakistan are working together to simplify the procedure for the receipt of remittances of foreign currency by Pakistani freelancers. The SBP will produce a code defining freelancing that satisfies the requirements for income tax exemption.

On the other hand, PSEB and SBP are collaborating in order to make it possible for registered Freelancers to open bank accounts in a foreign currency. Freelancers have a fantastic opportunity to easily handle their profits in foreign currency thanks to this new option.

The purpose of the National Freelancing Policy is to encourage the expansion of the freelancing industry and strengthen Pakistan’s economy by increasing the country’s exposure to international markets. The goal is to boost the country’s digital economy and strengthen the freelance market position in the global freelance market, which will be accomplished by fostering an atmosphere that is friendly to independent contractors.

In addition to this, the SBP will make it possible for freelancers to keep 35% of the foreign currency earnings they make in related foreign currency company accounts. PSEB will work along with FBR and the Ministry of Finance to ensure that foreign exchange export remittances received under freelancing codes remain exempt from taxation until the year 2030.

Additionally, Pakistan has recently taken significant action to advance the freelancing business as well as individual freelancers. In accordance with the policy, those individuals who have had at least two years of IT and ITeS export remittances that have exceeded US $5,000 yearly through legitimate banking channels will also be eligible for visa facilitation.

In recognition of the significant value they provide to the report’s information technology services, this will open doors of opportunities for freelancers and streamline the visa application procedure for them. In addition, registered freelancers will be eligible for many options, such as subsidized house loan programs, provided that they can demonstrate that they have earned a minimum of $12,000 annually in export remittances from their freelancing work over the course of at least the past five years. Freelancers will have an easier time getting an inexpensive housing program with the help of the new system.

The policy has as its primary goals the facilitation of freelancers’ access to worldwide markets, projects, and clients, as well as the provision of possibilities for professional advancement. A promotional plan and a thorough marketing strategy have been established in order to achieve this goal. The goal of these plans is to exhibit the skills and capacities of freelancers on a worldwide scale.

According to the policy, the PSEB will provide an outstanding opportunity to register for only one thousand rupees and to renew their registration on an annual basis for just three thousand and five hundred rupees. Freelancers will be able to make use of numerous PSEB programs and initiatives as a result of this development. These programs and initiatives include free and subsidized training, certifications, and subsidized office space in Software Technology Parks (STP) located all throughout the country. In addition to this, it will give access to other options for worldwide marketing and matchmaking.

In addition, PSEB, in partnership with other government sectors, makes it easier for freelancers to obtain visas if they can demonstrate a history of ITeS export remittances of over $5,000 annually through legitimate banking channels. This benefit is offered to freelancers.

It has been proposed that banks build technology business branches in a total of six major cities so that technically savvy bank employees may assist independent contractors. Provide a tax vacation on export income, revenue, or receipts for freelancers who are registered until the year 2030. the tax holiday would apply to freelancers.

PSEB is going to set up a freelancing desk where independent contractors may go to get any information regarding their problems addressed. These concerns may include taxation, banking, intellectual property rights (IP), voice-over-IP VPN access, or any other information relating to commercial matters. Freelancers will be able to use this desk.

On the other hand, the PSEB, in conjunction with officials from the government, will work toward the goal of providing registered freelancers with subsidized health insurance, employee liability insurance, and life insurance, and these benefits will be made available through current and future programs and subsidies.

Check Out: How to Become Freelancer under National Freelance Training Program.