How a person income will be taxed if he/she is a freelancer, also getting salary in Pakistan.

Question

How a person income will be taxed if he/she is a freelancer and earning from a foreign client and also getting a salary in Pakistan from an employer but the salary income is not more than 75% of total income. How his/her income will be taxed ?

Answer 1

Salary will be taxed as per Salary tax rates.

While Foreign Income will be taxed at reduced rates and as seperate block of income at 1% of Gross value.
both are taxed as sepaerate blocks of income.

Comments

Thank you. One more clarification, if the freelance income is regular as per contract with the foreign client and the total income as freelancer would be more than salary, it would still be same treatment ?

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Yes, provided that the freelancer income is from export of services. In case of local income the rules will be changed. In later case, if the salary income is less than 75% of the total income then both the salary and freelancer (or other) income will be taxed at the rate of individual slabs.