‘IT exporters, freelancers': SBP eases reporting formats
The revision of the electronic certificate format has been along-standing demand of IT companies and freelancers to report their foreign exchange income in local and foreign currency for the purpose of tax payments.
The banking regulator advised banks to ensure issuance of ePRC andS-PRCs, as per the new formats w.e.f. the 1st October 2025. Any system-related developments should be made at the earliest to ensure compliance with the above timeline, the circular issued by the SBP stated.
IT exports grow 25pc in 9MFY25: minister
The banking regulator introduced electronic certificates for reporting foreign remittances, e-PRC and S-PRCs, in August 2022; however, it requires updates from time to time since its utility has increased significantly. PRC is a proof of funds issued by banks when a customer receives them from abroad in his account in Pakistani rupee. It shows that funds such as workers' remittances, export proceeds, equity investments, and borrowing from abroad have been received from abroad and realised in Pakistan in rupees.
The beneficiary of funds can obtain this certificate (e-PRC) upon receipt of funds in his bank account in Pakistan, or as cash over the counter, from a bank. Furthermore, banks will issue a statement of PRCs (S-PRC) electronically to their customers, mentioning all remittances received by them from abroad during a year.
Chairman and Co-Founder Pakistan Association of Freelancers (PAFLA) Ibrahim Amin said that the revised format of earning details will benefit freelancers and country alike as their tax dedication will not be made multiple times; hence, they will be able to save their hard-earned money and share foreign exchange more with the country.
The new format will also facilitate the tax authority to deduct tax on the current income of freelancers rather than overall income based on the bank statement that also included income from other resources of the freelancers.
Over $400 million IT remittances were received in the nine months of the current financial year whereas the IT exports stood at $2.7billion during the same period. Senior Vice Chairman (PASHA) Muhammad Umair Nizam said the country may receive an increase of foreign exchange from the IT exporters same as it witnessed the revision of retention rate in the foreign exchange bank account for IT companies and freelancers.
He praised the efforts of the IT association, the concerned ministry, Pakistani Software Exports Board (PSEB) and Special Initiative Facilitation Council (SIFC) for addressing the issues of IT exporters timely for a long-term and sustainable growth of exports and industry.
He urged the government for addressing key issues of the IT industry related to taxes at the earliest for supporting exports of IT and IT-enabled services to grow further for achieving the target of $25billion per annum by FY29.
Copyright Business Recorder, 2025
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