Key Takeaways
- The Federal Board of Revenue (FBR) has introduced new tax rules targeting non-resident Pakistanis earning from social media content.
- Tax will be imposed on individuals with more than 50,000 users annually or 12,250 users quarterly.
- Tax rate is five per cent, with expenses claimable up to 30 per cent of revenue.
The Federal Board of Revenue (FBR) has introduced new tax rules to target non-resident Pakistanis generating income from social media content, according to a notification, SRO 1642 of 2026, released on Wednesday.
The new rules aim to ensure that individuals who generate income through social media user interactions in Pakistan are taxed, with a threshold set at more than 50,000 users in a year or 12,250 users in a quarter.
The government had previously introduced a five per cent tax rate on social media content earnings, and the new rules align with this rate, though they provide more detailed guidelines on how to calculate taxable income.
Tax officials are now identifying high-earning social media accounts with millions of followers that have remained outside the tax net, indicating a significant shift in how the government is approaching digital income.
The move comes at a time when social media has emerged as a major source of income, with earnings running into millions annually. The race for maximum followers is now about monetising platforms to earn money through digital content.
Unlike traditional earnings from trade or services, income on social media is largely generated through audience engagement and viewership. For those who qualify for taxation, the minimum taxable income will be calculated by taking the total earnings from social media and subtracting expenses, which can be claimed only up to 30 per cent of revenue.
The remuneration is defined as the higher of actual earnings or revenue-per-mille (fixed at Rs195 per 1,000 views on YouTube, subject to revision). Individuals will pay advance tax quarterly and declare income in a special section of their annual return.
Commissioners are empowered to rectify under-declarations, ensuring that tax compliance is maintained. The rules also define that a social media platform means an internet-based service whose primary purpose is to enable users to interact with other users and share user-generated content, where the economic value of the service arises from user participation, network effects, and the monetisation of user engagement or user data.
Social media content is defined as any digital information, communication, or creative material generated or published by a user on a social media platform, the value of which arises from user engagement, audience reach, or platform-facilitated dissemination, including content capable of generating advertising, sponsorship or other monetisation revenue.
