The Federal Board of Revenue (FBR) has introduced new tax rules targeting individuals who earn income through social media platforms based on user engagement in Pakistan.
The rules were notified through SRO 1642 of 2026 issued on Wednesday. The government had already introduced a 5 per cent tax on earnings from social media content in the federal budget.
Under the new framework, social media content creators will fall within the tax regime if their audience exceeds 50,000 users in a year or 12,250 users in a quarter.
Tax authorities have also started identifying high-earning social media accounts with millions of followers that have so far remained outside the tax net.
The move comes as social media has become an increasingly significant source of income, with some content creators earning millions of rupees annually through advertising, sponsorships, views and other forms of digital monetisation.
For individuals covered by the rules, taxable income will be determined after deducting allowable expenses from total social media earnings. Such expenses will be limited to 30 per cent of total revenue.
The rules define remuneration as the higher of actual earnings or revenue based on views. For YouTube, the revenue-per-mille rate has initially been set at Rs195 per 1,000 views, subject to revision.
Eligible individuals will be required to pay advance tax on a quarterly basis and disclose their social media income in a designated section of their annual tax returns. Tax commissioners will have the authority to correct cases involving under-declaration of income.
The rules further state that the higher of assessed income or remuneration received from social media content, whether in cash or in kind, will be treated as taxable income.
A social media platform has been defined as an internet-based service primarily designed to facilitate interaction among users and the sharing of user-generated content. Its economic value is linked to user participation, network effects and the monetisation of user engagement or data.
Social media content has been defined as digital information, communication or creative material created or published by users on such platforms. The rules cover content whose value is derived from audience reach, user engagement or platform-based distribution and which can generate advertising, sponsorship or other forms of revenue.
