FBR notifies new tax rules for non-resident influencers

The Federal Board of Revenue (FBR) has announced new tax rules for non-resident Pakistanis earning income from social media content. These rules target individuals who generate revenue through user interactions on social media platforms within Pakistan. The government had proposed a five percent tax rate on such earnings during the budget.

Tax is applicable to those earning more than 50,000 users annually or 12,250 users per quarter. High-earning social media accounts, previously untaxed, are now being identified. The move comes as social media income reaches millions annually, with follower counts driving monetization efforts.

Taxpayers must calculate taxable income by subtracting expenses, limited to 30 percent of revenue. Remuneration is the higher of actual earnings or revenue-per-mille (Rs195 per 1,000 views on YouTube). Taxpayers pay advance tax quarterly and report income in a special section of their annual return. Commissioners can rectify under-declarations.

Social media platforms are defined as internet-based services enabling user interaction and sharing of user-generated content, with economic value from user participation and monetization. Social media content refers to digital information, communication, or creative material generated on these platforms, valued through user engagement, audience reach, and platform dissemination, including content generating advertising or sponsorship revenue.