My name is Fayaz Hussain. I am a freelancer started 2 years ago and I have neither the desire nor the need to give it up.
I will say that the stability of work in firms and enterprises is a very relative concept. And business giants stop and do not pay wages for months or do not keep promises. What to say about the violation of agreements on the work schedule, the regularity of the payment schedule, compliance with labour laws, etc.
When you take a step into the world of freelance, you are usually faced with a question that until now was decided by anyone but you. Namely – financial relations with the state.
- Eternal choice: to pay or not to pay taxes?
- To formalize your activities or not?
- And most importantly – why?
- Especially if your earnings are not constant.
So who is a freelancer in Pakistan or World? This is a “free” person who provides one-time services, performs work, as a rule, without concluding long-term contracts, only on the basis of an oral agreement and, possibly, on the terms of advance payment. Freelancers often work outside the requirements of current legislation. And we are not now considering a question like: is it good or bad. It’s just a fact.
Meanwhile, the legislation of Pakistan provides rules for the taxation of any income received in tangible or intangible form by a citizen or legal entity. Till now IT exports are tax exempted in Pakistan
But life dictates its rules. Usually at the beginning of their activity (journalistic, acting, writing, etc.). our citizens do not think about the registration and payment of taxes. Because they receive insignificant funds, the receipt of which is not systemic.
But if a freelancer uses stable business and financial ties without having the official status of a taxpayer, he still begins to think about registering their activities.
Pakistan is a Fast Growing IT sector and the Government has given tax exemptions to the IT sector for a couple of years. So the Govt is demanding just to register not to pay taxes. Freelancers should formalize their activities by registering themselves.