The Federal Board of Revenue (FBR) has issued a notification outlining a special procedure for the collection of income tax on earnings generated through social media platforms.
According to the newly introduced mechanism, advance income tax will be applicable on social media income, particularly targeting non-resident influencers earning from Pakistani audiences. The policy states that individuals who deliver content to at least 50,000 users annually will fall under the tax net.
Under the proposed framework, an income tax of Rs. 195 will be imposed on every 1,000 views generated on social media content. However, the FBR has allowed a relief measure, permitting influencers to claim up to 30 percent of their social media income as expenses.
The tax authority has also opened the proposal for public consultation, inviting suggestions and feedback from stakeholders within seven days before finalizing the procedure.
The move is seen as part of broader efforts by the FBR to expand the tax base and regulate the rapidly growing digital economy in Pakistan.