ISLAMABAD: The Ministry of Information Technology and Telecommunication has drafted “National Freelancing Policy”, proposing the implementation of a reduced sales tax rate, not exceeding two percent against the local services revenue earned by the Pakistan Software Export Board (PSEB) registered freelancers.
Sources revealed that the policy envisaged to establish Pakistan as a leading global freelance market and increase exports and foreign exchange for the country.
As per the policy, the PSEB in collaboration with the SBP, to work to streamline inward foreign exchange remittances from freelancing activity using freelancing defined codes by the SBP that are subjected to income tax exemptions.
The PSEB to work with the SBP to allow foreign exchange bank account opening for registered freelancers.
The SBP to allow retention of 35 percent of foreign exchange income received as an inward remittance in these foreign exchange business accounts of freelancers. The PSEB to work with the Ministry of Finance (MoF) and the FBR to ensure the foreign exchange export remittances received in freelancing codes will remain income tax exempted till 2030.
Visa facilitation to freelancers with a record of a minimum of two years of IT and ITeS export remittances exceeding $5,000 per annum through formal banking channels.
Subsidised home loan schemes for registered freelancers under the existing and future government and private initiatives, subject to providing a record of a minimum of five years of freelancing exports remittances of more than $12,000 per annum.
The business development stressed on 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, the PSEB to provide registration for freelances for Rs1,000 and renewal for Rs3,500 per annum to access to PSEB programmes and initiatives, including free and subsidised training, certifications, subsidised office space at Software Technology Parks (STPs) across the country, and access to international marketing and matchmaking opportunities.
The 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.
The PSEB and relevant government bodies will provide visa facilitation to freelancers with a record of a minimum of three years of IT and ITeS export remittances exceeding $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, 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. The PSEB to work with the SBP and banks in providing relevant training for the staff of these branches.
The PSEB and relevant government and private sector organisations to collaborate on providing subsidised, collateral-free loans up to Rs1.0 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.
The PSEB and relevant government and private sector organisations to collaborate on providing subsidised health insurance, life insurance, and employee liability insurance to registered freelancers through existing and future subsidies and initiatives.
The PSEB, in partnership with other public and private sector organisations, will launch new training and technology certifications initiatives for registered freelancers.
The PSEB will create partnerships with multinational technology companies (tech MNCs) for subsidising the course materials and certifications, making such material available to the registered freelancers.
Copyright Business Recorder, 2023
Comments
Comments are closed.