Which kinds of work count as IT or IT-enabled services: graphic design, writing, virtual assistance, data entry?

The label matters because it decides which row of the rate table a freelancer can reach. Only exports of computer software, IT services or IT-enabled services by a PSEB-registered exporter can use the 0.25% rate. Everything else exported from Pakistan sits on the 1% row, which is still a flat rate on proceeds.

What does the law say?

Section 2 of the Income Tax Ordinance defines both terms.

IT services, clause (30AD): “include but not limited to software development, software maintenance, system integration, web design, web development, web hosting and network design”.

IT-enabled services, clause (30AE): include but not limited to inbound or outbound call centres, medical transcription, remote monitoring, graphics design, accounting services, Human Resource (HR) services, telemedicine centers, data entry operations, cloud computing services, data storage services, locally produced television programs and insurance claims processing.

Section 154A(1) then requires the bank to deduct tax from foreign exchange proceeds on account of several kinds of receipt, including:

• (a) exports of computer software, IT services or IT-enabled services “where the exporter is registered with and duly certified by the Pakistan Software Export Board (PSEB)”;
• (b) “services or technical services rendered outside Pakistan or exported from Pakistan”;
• (e) other services rendered outside Pakistan as notified by the Board.

Division IVA of Part III of the First Schedule sets the rates for tax year 2027:

Row	Receipt	Rate
1	Export proceeds of computer software, IT services or IT-enabled services by persons registered with PSEB	0.25% of proceeds, for tax years 2024 up to 2029
2	Any other case	1% of proceeds

Where does common freelance work fit?

Work	Named in section 2?	Reading of the text
Web design or development, app or software work	Yes, clause (30AD)	IT services
Graphic or logo design	Yes, “graphics design” in clause (30AE)	IT-enabled services
Data entry	Yes, “data entry operations” in clause (30AE)	IT-enabled services
Bookkeeping or accounting	Yes, “accounting services” in clause (30AE)	IT-enabled services
Recruitment or HR support	Yes, “Human Resource (HR) services” in clause (30AE)	IT-enabled services
Customer support calls	Yes, “inbound or outbound call centres” in clause (30AE)	IT-enabled services
Content or copy writing, translation	No	Not settled by the text; exported services under section 154A(1)(b)
Virtual assistance, general admin	No	Not settled by the text, unless the tasks match a named item such as data entry
Video editing, voice-over	No	Not settled by the text; exported services under section 154A(1)(b)

Both clauses say “include but not limited to”, so the lists are not closed. The Ordinance does not give a test for deciding whether an unnamed activity is an IT-enabled service. This page does not supply one.

For unnamed work, the practical point is narrower than it looks. If the work is not IT or IT-enabled, clause (a) is out of reach, and the receipt still falls within clause (b) as a service rendered outside Pakistan or exported from Pakistan. Row 2 of Division IVA gives 1%. Section 154A(2) makes that deduction final tax once the return and other conditions are met, the same as for IT work.

Worked example (illustrative figures)

Three freelancers in Hyderabad each receive Rs. 1,500,000 from foreign clients in tax year 2027. The amounts are invented. The rates are from Division IVA.

Bilal, logo designer, registered with and certified by PSEB. Graphics design is named in clause (30AE), so row 1 can apply:

1. Rs. 1,500,000 x 0.25% = Rs. 3,750

Sadia, logo designer, not registered with PSEB. Same work, but clause (a) needs PSEB registration, so row 2 applies:

1. Rs. 1,500,000 x 1% = Rs. 15,000

Kamran, blog writer. Writing is not named in either list. His receipts are services exported from Pakistan under clause (b), row 2:

1. Rs. 1,500,000 x 1% = Rs. 15,000

For Sadia and Kamran the result is the same, because without PSEB registration the IT label changes nothing in the rate.

What if …?

What if my work mixes named and unnamed tasks? A virtual assistant who does data entry and also handles email is doing one named task and one unnamed one. The Ordinance does not say how a mixed engagement is classified.

What if PSEB will not register my kind of work? Who PSEB registers is outside this corpus. The Ordinance only says the 0.25% row needs registration with and certification by PSEB.

What if my client is in Pakistan? Section 154A deals with foreign exchange proceeds. Payments from Pakistani clients are covered by other provisions on a separate page.

Common mistakes

• Assuming the IT label alone gives 0.25%. Clause (a) and row 1 both require PSEB registration.
• Assuming non-IT freelancing is outside section 154A. Clause (b) covers services rendered outside Pakistan or exported from Pakistan, whatever the type.
• Reading the lists as closed. Both definitions say “include but not limited to”, which leaves room without deciding any particular case.

What to check in the official text

Read section 2(30AD) and (30AE), section 154A in full, and Division IVA of Part III of the First Schedule in the Ordinance as amended to 30 June 2026. Section 154A(6) lets the Board include or exclude services, and section 154A(1)(e) covers services the Board notifies. Check for any such notification, which is not held in this corpus.