July 16, 2023 (MLN): The Ministry of Information Technology and Telecommunication (MoITT) has unveiled the "National Freelancing Policy" with the aim of establishing the country as a prominent global hub for freelancers.
The policy proposes several measures to boost freelancers' participation in the formal economy, increase exports, and generate foreign exchange income.
One of the key highlights of the policy is the execution of reduced sales tax rates, not exceeding 2%, on local services revenue earned by freelancers recorded with the Pakistan Software Export Board (PSEB).
This strategic move will alleviate the tax burden on freelancers, fostering their engagement in the formal economy and appealing to more individuals to join the freelancing industry.
The policy also stressed collaboration between the PSEB, government entities, and private sector institutions to propose measures to registered freelancers.
These measures include subsidized health insurance, life insurance, and employee liability insurance.
Additionally, partnerships with multinational technology companies are being recognized to subsidize course materials and certifications, making them more available to registered freelancers.
To facilitate international transactions for freelancers, the policy outlines alliances between the PSEB and the State Bank of Pakistan (SBP). These collaborations aim to structure inward foreign exchange remittances by introducing freelancing-defined codes eligible for income tax exemptions.
The SBP will also enable recorded freelancers to open foreign exchange bank accounts, abridging their financial operations.
The policy extends beyond financial benefits and includes several other areas of support for freelancers. Visa facilitation measures will be implemented for freelancers with a proven track record of IT and ITeS export remittances, making it easier for them to travel overseas for work opportunities.
Furthermore, subsidized home loan schemes will be made accessible to registered freelancers who meet definite export remittance criteria.
The policy also emphasizes enhancing freelancers' skills to increase their likelihood of getting opportunities.
Initiatives for marketing, training, certifications, and access to international markets will be launched to authorize freelancers and improve their competitiveness.
Under the proposed policy, freelancers will be obligated to register with the PSEB for a fee of Rs1,000, with an annual renewal fee of Rs3,500.
This registration will help freelancers access to various PSEB programs and initiatives, including free and funded training, certifications, subsidized office space at Software Technology Parks (STPs) across the country, and international marketing and matchmaking opportunities.
Banks will play a vital role in supporting freelancers, with plans to commence technology business branches in at least six Pakistani cities.
These branches will be equipped with technology-aware personnel who can assist freelancers with their banking needs. The PSEB will join forces with the SBP and banks to deliver relevant training to the staff of these specialized branches.
The proposed policy also intends to provide income tax exemptions to registered freelancers until 2030 on their export income, revenue, and receipts, subject to receiving payments through formal banking channels using specific drive codes assigned by the SBP.
Copyright Mettis Link News
Posted on:2023-07-16T13:33:04+05:00
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