How to Register a Freelancer with FBR in Pakistan
Introduction
If you’re a freelancer in Pakistan making money online, it’s time to get serious about Register Freelancer with FBR Pakistan. Sounds intimidating? Don’t worry. We’re breaking it down step by step to make it easy and clear.
Is Register Freelancer with FBR Pakistan important
Registering with FBR not only makes your income legal but also helps build financial credibility. Want to apply for a loan, visa, or even a car on lease? You need an NTN (National Tax Number) and proof of income.
Legal Obligations & Tax Compliance
Freelancers earning income in Pakistan are required by law to declare their income and file taxes on an annual basis. Non-compliance could lead to penalties or legal action.
Understanding FBR (Federal Board of Revenue)
What is FBR?
The FBR is Pakistan’s top tax authority responsible for collecting and managing federal taxes.
Role of FBR in Pakistan’s Tax System
They ensure fair taxation, reduce evasion, and improve the economy by widening the tax net.
Who Needs to Register Freelancer with FBR Pakistan?
Definition of a Freelancer According to FBR
A freelancer is anyone who earns income by offering digital services without being permanently employed—usually working with international clients.
Minimum Income Threshold
There’s no fixed income limit to get registered. Even if you make a small amount, it’s better to register and be compliant.
Freelancers Working on Platforms like Upwork, Fiverr, etc.
Yes, if you work on platforms and receive income in your bank or wallet, you must register with FBR.
Prerequisites Before Registration
Here’s what you’ll need:
✅ Valid CNIC
✅ Working Email Address
✅ Mobile Number (linked with CNIC)
✅ Optional: Bank Statement or Payment Proof (Payoneer, Wise, etc.)
Step-by-Step Guide to Register with FBR
Step 1: Visit FBR IRIS Portal
Go to: https://iris.fbr.gov.pk
Step 2: Create an Account
Click on “Registration for Unregistered Person” and enter CNIC, phone number, and email.
Step 3: OTP Verification
You’ll receive OTPs on your phone and email. Enter both to proceed.
Step 4: Fill Out the Profile
Add basic information like address, business type (select “Freelancer” or “Service Provider”).
Step 5: Submit for NTN
Once submitted, your NTN will be issued digitally within 24-48 hours.
What is an NTN and Why It’s Important
Benefits of Having an NTN for Freelancers
- Legal proof of income
- Required for Visa & Bank Loans
- Eligible for IT Tax Credits
- Gain trust from clients and platforms
How Long Does It Take?
NTN is usually issued within one working day after application.
Income Tax Filing for Freelancers
Types of Taxes for Freelancers
Freelancers fall under income from business or profession. Tax rates vary based on income brackets.
Documents Required
- Payment proofs
- Expense receipts (if applicable)
- Bank statements
Deadlines
Usually by September 30th each year. Always check FBR’s official calendar.
Tax Benefits for IT Exporters & Freelancers
100% Tax Credit Under Section 65F
If you’re exporting digital services, you’re eligible for a 100% tax credit—but only if:
- You file your returns
- Get registered with PSEB (Pakistan Software Export Board)
PSEB Certificate
Apply online at pseb.org.pk
Common Mistakes Freelancers Make
- Registering but not filing annual tax returns
- Declaring wrong income or personal details
- Ignoring PSEB registration (no tax credit without it)
How to Maintain Tax Compliance After Registration
File Annually
Even if your income is small or zero, you must file your returns.
Keep Records
Save invoices, Payoneer reports, Upwork statements, etc.
Penalties for Non-Compliance
Fines and Legal Action
FBR can impose heavy fines or even launch audits if you fail to register or file.
Freezing of Bank Accounts
If caught evading taxes, your bank accounts could be frozen by the authorities.
Registering a Bank Account with FBR
Why Linking a Bank Account is Necessary
It verifies income and is needed for professional credibility.
How to Add Bank Details
In IRIS, go to “Bank Account Details” and add your account number and branch info.
Using the FBR Mobile App for Freelancers
Download the App
Available on Android and iOS – search for “Tax Asaan”
File Using the App
You can even file your return or check your status through the app.
Yes, registration with FBR and obtaining an NTN is completely free.
Absolutely! Having an NTN and tax return proves your income legitimacy.
Yes, freelancers are liable to pay tax, but they can claim a 100% credit if registered with PSEB.
You may face a penalty and lose your eligibility for tax credits.
Yes, even students earning online income should register with FBR.
Yes, their statements can be used when filing tax returns.
Conclusion
Registering with FBR might sound technical, but it’s a straightforward process. It’s the first step to becoming a professional freelancer in Pakistan. Not only does it make you legally compliant, but it also opens doors to financial services, tax credits, and peace of mind. Whether you’re just starting or already earning, don’t delay—get registered and file your taxes today.
