ISLAMABAD: Pakistan’s Federal Board of Revenue (FBR) has proposed a new tax framework targeting social media income, requiring influencers and YouTubers with at least 50,000 subscribers to register as businesses and pay taxes on their earnings.
The draft rules, issued under S.R.O. 546(I)/2026 and S.R.O. 545(I)/2026, bring digital content creators into the formal tax net as the government expands its focus on the growing online economy. The proposed framework applies to both resident and non-resident individuals earning from Pakistani audiences.
Under the proposal, income from platforms such as YouTube, including earnings from advertisements, subscriptions and user engagement, will be taxable after allowing expenses of up to 30% of total revenue.
Benchmark formula to assess earnings
The FBR has introduced a standardised method to estimate digital income, setting a benchmark of Rs195 per 1,000 views on YouTube content. Officials said the formula may be revised over time.
If declared income falls below the benchmark estimate, tax authorities may assess additional liability and recover the difference under the proposed rules.
Quarterly tax and reporting requirements
Content creators will be required to pay advance income tax on a quarterly basis and report earnings in a dedicated section of their annual tax returns.
For foreign and non-resident creators, tax liability may arise if engagement from Pakistan exceeds 50,000 users annually or 12,250 users in a quarter.
Wider push to document digital earnings
The move reflects a broader policy shift to document and regulate income generated through digital platforms as online content creation becomes a significant revenue stream.
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If implemented, the rules will bring influencers, YouTubers and other digital earners under structured tax compliance, aligning the sector with existing business taxation frameworks.
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