How Freelancers Can File Their Income Tax Returns?

Hello there, Freelancers. Know what?

In Pakistan, filing taxes could appear like a difficult task for a freelancer.

But in order to stay out of trouble with the law and avoid penalties, you have to file your taxes accurately and timely.

If you are feeling lost in the maze of freelance taxes in Pakistan, then you are not alone, so don’t worry!

With Befiler’s expert step-by-step guide, you can easily navigate through the process and can find yourself an instant pro in freelancers’ taxes.

So hold up your breath Freelancers! Here we go to make things easy for you.   

Your First Priority: ‘Be Aware of Your Tax Bracket’

Services being exported? You’re fortunate! Due to its 1% tax rate reduction for freelancers exporting services, Pakistan is now a competitive choice for clients globally.

Registered with the PSEB? Better still! You benefit greatly from a further tax rate reduction to just 0.25%.

Serving clients across Pakistan? The standard individual tax slabs are applicable, with rates varying from 5% to 35% based on your income.

Next Up, Get Ready For Returns Filing:

Obtain an NTN (National Tax Number) by registering it online through Befiler’s web portal or the mobile app. This NTN is your tax ID.

Monitor your earnings and expenses, in order to guarantee precise calculations, maintain thorough records of each transaction.

Select returns filing method, for your convenience, go digital and file online using the Befiler’s web portal, or Befiler’s mobile app.

Now It’s Time To Do Some Math:

First, figure out how much income you need to pay tax on. Next, subtract expenses you can deduct from this total income.

Remember, you might be able to use some special deductions depending on the type of work you do.

To pay the right amount of tax, you need to use the correct tax rate. You can find the rate that applies to you in the information we talked about earlier.

Lastly, Submit Your Tax Returns & Make Payment:

The due date is set in the third quarter every year! Submit your return by September 30th of each year to avoid penalties.

For a seamless transaction when making tax payments, use approved banks or online payment methods.

Concluding Remarks:

Law requires you to file your taxes accurately and on time, which also supports Pakistan’s development.

When you fulfill your civic responsibilities, you in return help build a better future for everyone.

Befiler offers taxation and compliance services, if you want to file your tax returns, launch an LLC, or want to open a bank account. Then move no further other than making this move.