I want to register for NTN and want to become an active taxpayer from now on and in the future. Can you please guide me?

Question

I appreciate your efforts in online assistance. I started freelancing (as a content writer) with international clients in 2021. I worked until 2024, around 3 to 4 years. I used to receive money in PKR from different countries, as my clients were based in various countries (Australia, Thailand, and the USA). I have earned a handsome amount during these years. But I was not registered with PSEB or any other online freelancing platforms (i.e., Fiverr, Upwork, etc.). These were the clients I have found on LinkedIn and some other online platforms. What should I do now? I want to register for NTN and want to become an active taxpayer from now on and in the future. Can you please guide me?

I do not own any property or any other assets. I was only self-employed, and now I am a PhD student on scholarship for the last three years in China.

Please, I need your expert opinion on this and guidance.

Thank you in advance.

Answer 1

Thank you for sharing your details. Based on your situation, here’s what you should do:

1. Register for NTN – As a freelancer, you can register as an Individual with the FBR for Income Tax. This can be done online through IRIS or we can assist you in registering quickly.
   Guide: Register NTN (National Tax Number) in Pakistan

2. Declare Your Past Freelance Income – Since you earned from 2021 to 2024, you can file past returns voluntarily to document your history and avoid any future questions. Even if no tax is due now, filing the correct history strengthens your tax profile.

3. Start Filing Regularly – From now on, you’ll need to file your Annual Income Tax Return each year before the deadline (usually 30 September) to maintain active filer status.

4. Foreign Income as Freelancer – Payments from foreign clients in PKR are still counted as taxable income in Pakistan if received in your bank account here. Declare them under “export of services” in the return.

5. PSEB Registration (Optional) – While it’s not legally required for freelancing, registering with the Pakistan Software Export Board can help you access certain benefits and recognition. This also reduce your taxes by 75% however, PSEB has their own registration and renewal charges.

6. Scholarship in China – Scholarships are generally exempt from tax if they meet the definition under Section 39(1)(j) of the Income Tax Ordinance, 2001. You’ll still file returns, but the scholarship amount won’t be taxed.

✅ If you want, we can handle your NTN registration and file your returns (current and previous years) so you start your journey as a compliant active taxpayer right away.