The Federal Board of Revenue (FBR) has introduced new tax rules for income earned through social media content, including earnings generated by non-resident Pakistanis through interactions with audiences in Pakistan.
The rules were notified through SRO 1642 of 2026 and follow the government’s decision in the federal budget to impose a 5 per cent tax on social media content earnings. Under the new framework, individuals may fall within the tax net if their social media audience exceeds 50,000 users annually or 12,250 users in a quarter.
The FBR has started identifying high-earning social media accounts, particularly those with millions of followers, that have so far remained outside the formal tax system.
For taxable individuals, income will be determined based on the higher of the assessed income or remuneration earned from social media content, whether received in cash or in kind. Allowable expenses can be deducted up to 30 per cent of total revenue.
The rules also introduce a revenue-per-mille (RPM) benchmark, currently set at Rs195 per 1,000 YouTube views, although the rate may be revised. Taxpayers will be required to pay advance tax on a quarterly basis and report their social media income in a designated section of their annual tax returns. Tax officials have also been empowered to correct cases involving under-declared income.
The FBR has broadly defined social media platforms as internet-based services that allow users to interact and share user-generated content, with economic value derived from participation, network effects and the monetisation of engagement or user data.
Social media content covers digital information, communication and creative material produced or published by users, where its value is linked to audience reach, engagement or platform-based distribution, including content that generates advertising, sponsorship or other forms of revenue.
