Many clients prefer Stripe because it is secure and easy to use. For Pakistani freelancers and business owners, having access to Stripe means they can work with global clients more smoothly. Even though Stripe is not officially available in Pakistan, people still try to use it through workarounds because of its features. It helps build trust and improves payment handling.
Table of Contents
Table of Contents
Is Stripe Officially Available in Pakistan
Stripe is not officially available in Pakistan. You cannot create a Stripe account using a Pakistani bank, address, or national details. The platform does not support Pakistan in its list of approved countries. This means Pakistani users don’t have direct access to Stripe services for sending or receiving payments.
Many freelancers and business owners in Pakistan still look for ways to use Stripe. They often create companies in supported countries like the US or UK. This includes setting up an LLC, getting a tax number, a foreign address, and a virtual bank account. These steps allow them to register and use Stripe, even though they’re based in Pakistan.
Some users also try to connect services like Payoneer or Wise. But Stripe may reject account verification if documents show a Pakistani address. This makes the setup tricky and not guaranteed. It requires careful planning and accurate foreign details.
Workarounds to Use Stripe from Pakistan
Stripe is not available directly in Pakistan, but there are ways people try to access it. The most common method is setting up a company in a supported country, like the United States or the UK. This includes registering an LLC, getting an EIN (tax number), and creating a virtual mailing address. After that, you can open a virtual bank account using services like Wise or Mercury.
Once these steps are completed, you can use the foreign business details to open a Stripe account. You’ll need to submit ID, proof of address, and bank information from the supported country. Many Pakistani freelancers use this method to work with international clients and receive payments online.
Some people also use Stripe through friends or family who live abroad. They set up the account in their name and share access. However, this comes with risks. Stripe can suspend the account if it finds mismatched details or suspicious activity.
Tax Responsibilities for Pakistani Stripe Users
Stripe Earnings Count as Foreign Income
If you’re earning through Stripe while in Pakistan, your income is treated as foreign-sourced. Even if Stripe isn’t officially supported, any money you earn through it still falls under Pakistan’s tax rules. The Federal Board of Revenue (FBR) requires you to report foreign income, no matter how you received it.
No 1099 Forms for Pakistani Users
Stripe sends 1099 tax forms only to users in the U.S. Pakistani users won’t receive these forms, but that doesn’t remove your tax responsibility. You are still expected to self-report your earnings to FBR during tax filing season.
File Income Tax Returns with Stripe Earnings
All freelancers, business owners, or service providers using Stripe must include those earnings in their annual income tax return. Your tax rate depends on your total yearly income. If your income is above the taxable limit, you are legally required to pay income tax.
Keep Transaction Records
Stripe won’t report your income to Pakistan, but that doesn’t mean it’s untraceable. You should download Stripe reports regularly, maintain receipts, and keep accurate records. If the FBR asks for proof, these documents will help you stay safe and compliant.
Report Stripe Income to FBR
If you earn money through Stripe while living in Pakistan, it’s considered foreign income. Even if Stripe is connected to a U.S. bank or business, the money belongs to you and must be declared in your tax return to the Federal Board of Revenue (FBR).
Include Stripe Earnings in Your Tax Return
During the annual tax filing process, you must add your Stripe income under the foreign income section. Use your total Stripe earnings in Pakistani Rupees. You can convert the income using the official exchange rate at the time of receiving the money.
Select the Right Income Category
If you’re a freelancer or service provider, declare your Stripe earnings under “Income from Business or Profession.” If you run an online store, report it as “E-commerce or Export Services.” Choosing the right category helps avoid confusion and delays during tax assessments.
File Through IRIS System
You can report this income by logging into the FBR IRIS portal. Fill out the annual income tax return form, include all relevant foreign income details, and submit it before the deadline. Save all Stripe transaction reports as supporting documents in case FBR requests proof later.
Track of Stripe Transactions and Earnings
Download Reports from Stripe Dashboard
Stripe makes it easy to track your earnings. You can log into your Stripe Dashboard and download payout reports, payment summaries, and monthly statements. These reports help you see how much you earned, what fees were charged, and when payouts were made.
Use Spreadsheets or Accounting Tools
Once you have your Stripe reports, you can organize the data in Excel or Google Sheets. This helps you calculate your total income, fees, and net earnings. Some users also connect Stripe with accounting tools like QuickBooks or Xero to automate tracking and keep records updated.
Save Proof for Tax Filing
Keeping records is not just for business, it’s important for filing taxes with FBR. Save receipts, Stripe invoices, and any transaction history. These documents are useful if the tax authority asks for proof of income.
Conclusion
Using Stripe from Pakistan is possible through workarounds, but it comes with responsibility. Even if Stripe doesn’t officially operate in Pakistan, your income through it must be reported to FBR. Always stay honest and keep proper records.
It’s important to follow tax rules and avoid mistakes. Report your earnings, save your transaction history, and file your tax return on time. If needed, talk to a tax advisor. Doing things the right way keeps you safe and helps your business grow without problems.
