The Federal Board of Revenue (FBR) has moved to bring social media earnings under a dedicated tax framework, signaling tighter oversight of income generated through platforms such as YouTube and other monetized digital channels. The initiative reflects the government’s growing focus on regulating Pakistan’s expanding digital economy.
Under the proposed policy, social media account holders with at least 50,000 subscribers will be classified as businesses and required to pay taxes on their earnings. Officials said the move aims to formally document digital income streams that have grown significantly in recent years.
The proposed changes were introduced through draft amendments issued under S.R.O. 546(I)/2026 and S.R.O. 545(I)/2026. These amendments outline a special taxation procedure for individuals earning income from remunerative social media content, covering both resident and non-resident creators generating engagement from Pakistani audiences.
According to the draft rules, taxable income will be calculated as total earnings received from social media platforms after allowing expenses of up to 30 percent of total revenue. The framework applies to income generated through advertisements, subscriptions, and user viewership linked to Pakistan.
The FBR has also introduced a benchmark formula estimating revenue at Rs. 195 per 1,000 YouTube views. Authorities noted that this benchmark may be revised periodically, and tax officials may recover any difference if declared earnings fall below calculated estimates.
Additionally, digital creators will be required to pay advance income tax on a quarterly basis and declare earnings in a dedicated section of annual tax returns. Non-resident creators may also face taxation if interaction with Pakistani users exceeds 50,000 annually or 12,250 users in a quarter, signaling stricter scrutiny of influencers and digital platforms operating within Pakistan’s online market.
