FBR Doubles Tax on Earnings of Non-Filer Influencers

The Federal Board of Revenue (FBR) has recently introduced a significant increase in the withholding tax for social media earnings of digital content creators and influencers, effective from July 1, 2026. This decision is part of the FBR's updated Withholding Tax Card 2026, which was issued following the amendments introduced through the Finance Act 2026.

According to Section 154B of the Income Tax Ordinance, digital content creators and influencers appearing on the Active Taxpayers List (ATL) will be subjected to a 5 percent withholding tax on the revenues they receive from social media platforms. However, for those not listed on the ATL, the tax rate rises to a substantial 10 percent.

The FBR has stated that the updated Withholding Income Tax Rate Card, which includes these tax changes from the Finance Act 2026, is applicable until June 30, 2026. Additionally, Section 236Y of the Income Tax Ordinance regulates amounts remitted abroad through credit, debit, or prepaid cards, with a withholding tax rate of 0.5 percent for ATL taxpayers and 1 percent for non-ATL individuals under Division XXVII of Part IV of the First Schedule, as per Rule 1 of the Tenth Schedule.