ISLAMABAD: The Federal Board of Revenue (FBR) has unveiled a draft framework to tax income earned by individuals from social media content. The new rules target content creators with more than 50,000 subscribers, making them liable for taxation on their earnings.
Under a statutory regulatory order (SRO) issued Wednesday, the FBR said the framework applies to any non-resident earning income from interactions with users in Pakistan, provided the income is deemed Pakistan-source.
According to the notification, individuals with more than 50,000 subscribers in a tax year—or 12,250 subscribers in a quarter—will fall under the tax regime.
“The provisions of the Ordinance not specifically addressed in these rules shall apply, mutatis mutandis, to persons earning income from remunerative social media content,” the FBR stated.
The authority invited stakeholders to submit suggestions or objections within seven days of the notification.
The SRO defines a social media platform as an internet-based service designed primarily for user interaction and content sharing. Platforms must generate economic value through user engagement, network effects, or monetization of user data to qualify.
Social media content is defined as any digital information, communication, or creative material published by a user, whose value is derived from audience engagement, reach, or platform-facilitated distribution. This includes content that generates advertising, sponsorship, or other forms of monetized revenue.
The FBR said taxable income will be calculated by deducting allowable expenses—capped at 30 percent of total revenue—from total earnings. Revenue will be assessed using a formula based on revenue per 1,000 views (set at Rs195), average views per post, and the number of posts annually.
The higher of assessed income or actual remuneration—cash or in-kind—will be treated as taxable. Social media income must be reported separately in tax returns, with authorities empowered to correct underreporting and recover dues.
