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WeBOC, PSW, Export Documentation & Forex Regulations
| Incentive | Benefit | Eligibility | Source | Reference |
|---|---|---|---|---|
| 1% Tax | Reduced rate | PSEB registered | SRO 488(I)/2013 | |
| Tax Holiday | 100% (3yr) | New exporters | Finance Act | |
| Export Refinance | Cheap loans | SBP regulated | SBP ERPD | |
| Duty Free | Zero duty IT equip | IT companies | SRO 656(I)/2023 | |
| Super Tax Exempt | Not applicable | Export-focused | Finance Act 2025 | |
| 100% Repatriation | Full forex | All exporters | FE Act |
Complete guide to IT export documentation, WeBOC, PSW, and foreign exchange procedures
Pakistan's IT exports have grown exponentially. The government provides massive incentives for IT companies exporting software and IT-enabled services. Unlike physical goods, IT exports follow a simplified documentation process.
Bank certificate for each remittance
Optional for IT services
Monthly return via banks
| Incentive | Details | Requirement |
|---|---|---|
| 1% Income Tax | Final tax on IT/ITeS export income | PSEB registration |
| 100% Tax Holiday | Complete exemption for first 3 years | New PSEB-registered exporters |
| 0% Sales Tax | Zero-rated under SRO 981(I)/2015 | IT/ITeS services export |
| Customs Duty Exemption | IT equipment/software imports duty-free | PSEB registration + certification |
| Forex Retention | Retain 100% of export proceeds in FC account | SBP-approved bank account |
| Remittance Incentive | Additional incentive on home remittances | Through banking channels |
Register as IT/ITeS exporter. Must have SECP company + NTN first.
Open foreign currency account at any SBP-licensed bank for export proceeds.
Sign service agreement/invoice with foreign client. Ensure clear payment terms.
Include export income in annual tax return with 1% tax. Attach PSEB certificate + ePRCs.
WeBOC is Pakistan's electronic customs clearance system. For pure IT/ITeS service exports, WeBOC registration is generally NOT required. However, it's needed if you also export:
| Document | Purpose | Required for IT? |
|---|---|---|
| ERF (Export Registration Form) | Register as exporter with customs | Only if exporting physical goods |
| Form-E | Export declaration for goods | Only for physical shipments |
| GD (Goods Declaration) | Customs declaration | Only for physical shipments |
| ePRC | Electronic Proceed Realization Certificate | YES — Required for all IT exports |
The Pakistan Single Window (PSW) integrates all regulatory agencies into a single online platform for trade facilitation:
For IT companies: Primarily useful if importing duty-exempt IT equipment. Pure service exports don't need PSW.
PSW Official]| Requirement | Details |
|---|---|
| Repatriation Deadline | Export proceeds must be realized within 180 days of invoice date |
| Bank Reporting | Banks report all export receipts to SBP automatically |
| ePRC Issuance | Bank issues ePRC within 48 hours of credit to account |
| FC Account | Can maintain export proceeds in foreign currency account |
| Retention | 100% retention allowed for IT exporters (enhanced from 50%) |
| Payment Methods | Wire transfer, PayPal (via approved channels), digital wallets |