Foreign remittances received in Pakistan from overseas employment or freelance work have specific tax treatment. Know your WHT obligations and exemptions in 2026.
WHT on Foreign Remittances 2026
| Type | WHT Rate |
|---|---|
| Remittances received via banking channel | 0% (exempt) |
| Freelance income from IT/digital services | 1% (adjustable) |
| Foreign salary income | Taxable at normal slabs |
Exemptions for Overseas Pakistanis
- Remittances sent home by overseas Pakistanis are exempt from income tax for the recipient
- Roshan Digital Account profit is taxed at reduced rates
- Foreign earned income of non-resident Pakistanis is exempt from Pakistan tax
IT Freelancer Export Income
Freelancers earning from foreign clients get 1% WHT on remittances received. This is adjustable against annual tax liability.
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Frequently Asked Questions
Do I pay tax on money received from family abroad?
No. Personal remittances from family members abroad are exempt from income tax. However, declare large amounts in wealth statement as source of funds.