16/07/2026
Great news for Pakistan's IT sector!
Under the Finance Act 2026 to 27, the advance tax on outgoing payments made abroad through Pakistani bank issued credit, debit, and prepaid cards has been cut from 5% to 0.5%, effective July 1, 2026. That's a 90% reduction.
Until now, every outgoing payment abroad through a Pakistani card, whether for cloud infrastructure, SaaS subscriptions, developer tools, or other international software services, carried a real, recurring 5% cost. With the new rate, that cost is now negligible.
This is a direct, tangible win for IT companies who rely on foreign platforms every day to run their business. It stands alongside the 0.25% concessionary income tax rate for IT and ITeS exporters, extended to Tax Year 2029 in the same budget, as one more sign that this year's Finance Act delivered for the sector.
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