The Federal Board of Revenue (FBR) has rolled out a specialized tax procedure for individuals generating income through social media platforms, officially incorporating a new chapter into the Income Tax Rules.
Under the newly notified guidelines, the taxable income from social media content will be computed by deducting allowable operational expenses—capped at a maximum of 30 percent of total revenue—from total earnings. The regulations apply to resident individuals generating revenue from digital interaction within Pakistan, with provisions requiring proof to be submitted to the Commissioner if actual earnings fall below official benchmarks.
Gross social media revenue will be calculated based on a combination of actual earnings (in cash or kind) and view counts, utilizing a benchmark formula such as the Revenue-Per-Mille (RPM) standard set at Rs195 per 1,000 YouTube views. Furthermore, creators are mandated to pay quarterly advance income tax and declare their social media streams in a designated section of their annual tax returns. If discrepancies or under-declarations are identified, the Commissioner holds the authority to adjust the figures
