The Ministry of Information Technology and Telecommunication has drafted the “National Freelancing Policy”, proposing the implementation of a reduced sales tax rate, not exceeding 2 percent against the local services revenue earned by the PSEB registered freelancers.
Sources told ProPakistani that the policy envisaged establishing Pakistan as a leading global freelance market and increasing exports and foreign exchange for the country.
As per the policy, PSEB, in collaboration with SBP, works to streamline inward foreign exchange remittances from freelancing activity using freelancing-defined codes by SBP that are subjected to income tax exemptions.
PSEB will work with SBP to allow foreign exchange bank account opening for registered freelancers.
SBP will allow retention of 35 percent of foreign exchange income received as an inward remittance in these foreign exchange business accounts of freelancers. PSEB to work with the Ministry of Finance (MoF) and FBR to ensure the foreign exchange export remittances received in freelancing codes will remain income tax exempted till 2030.
Visa facilitation will be given to freelancers with a record of a minimum of Two years of IT & ITeS export remittances exceeding US $5,000 per annum through formal banking channels.
Subsidized home loan schemes will be given to registered freelancers under the existing and future government and private initiatives, subject to providing a record of a minimum of 5 years of freelancing exports remittances of more than $12,000 per annum.
The business development stressed providing access to freelancers to international markets, projects, and clients and introducing a robust marketing strategy and promotional plan for freelancers.
As per the proposed policy, PSEB will provide registration for freelances for Rs. 1,000 and renewal for Rs. 3,500 per annum to access PSEB programs and initiatives, including free and subsidized training, certifications, subsidized office space at Software Technology Parks (STPs) across the country, and access to international marketing and matchmaking opportunities.
Moreover:
PSEB to establish a facilitation desk for freelancers at the PSEB office and PSEB-operated STP to address matters related to registrations, taxation, banking, Intellectual Property (IP) rights, Voice over IP (VoIP) whitelisting, Virtual Private Network (VPN) access, dispute resolution, or any other legal or commercial matters.
PSEB and relevant government bodies will provide visa facilitation to freelancers with a record of a minimum of three years of IT & ITeS export remittances exceeding US $5,000 per annum through formal banking channels.
Provide digital banking channels to freelancers in opening bank accounts, enabling e-payments and providing access to other financial instruments, increasing export remittances, and simplifying outward remittances for purchasing services, software, tools, and digital platforms.
Banks to establish technology business branches in at least six Pakistani cities where technology-aware bank staff can help freelancers. PSEB to work with SBP and banks in providing relevant training for the staff of these branches.
PSEB and relevant government and private sector organizations to collaborate on providing subsidized, collateral-free loans up to Rs. 1.0 million to registered freelancers through existing and new initiatives of banks and financial institutions.
Provide income tax holiday to registered freelancers till 2030 on export income/ revenue/receipts of freelancers, subject to receipt of income/revenue through formal banking channels in the specific purpose codes assigned by the SBP.
PSEB and relevant government and private sector organizations collaborate on providing subsidized health insurance, life insurance, and employee liability insurance to registered freelancers through existing and future subsidies and initiatives.
HR Development, and Entrepreneurship PSEB, in partnership with other public and private sector organizations, will launch new training and technology certification initiatives for registered freelancers. PSEB will create partnerships with multinational technology companies (Tech MNCs) for subsidizing the course materials and certifications, making such material available to the registered freelancers.
Source: Pro Pakistani