ISLAMABAD: The Federal Board of Revenue (FBR) has introduced new tax rules for non-resident social media influencers and content creators earning income linked to users in Pakistan.
The rules establish a specific mechanism for determining Pakistan-source income generated through remunerative social media activities. Under the framework, qualifying non-resident individuals will be subject to a 5% tax, with the deducted amount treated as a final tax for non-residents who do not have a permanent establishment in Pakistan.
The rules apply to non-resident individuals whose digital activities involve systematic and continuous interaction or business solicitation with users in Pakistan. The prescribed threshold is more than 50,000 users during a tax year or 12,250 users during a quarter.
The measure is part of Pakistan’s broader taxation framework for income generated through digital platforms. The Finance Act 2026 also introduced a 5% withholding tax on revenues received by digital content creators and social media influencers through platforms including YouTube, Facebook, Instagram and TikTok.
The new framework is aimed at bringing qualifying digital earnings connected to Pakistan into the formal tax system while establishing procedures for identifying and assessing income generated through social media activities.