5% withholding tax imposed on social media earnings

The federal government has imposed a 5% withholding tax on individuals earning income through social media platforms, including YouTube, Instagram, Facebook, and TikTok, 24NewsHD TV reported on Friday. 

According to the proposed new tax will apply to content creators, influencers, and other individuals who generate revenue through digital platforms.

Under the decision, a 5% withholding tax will be deducted from income earned through social media activities.

Sources said banks have been authorized to collect the tax and will automatically deduct it when social media-related payments are credited or transferred to account holders.