ISLAMABAD: The Federal Board of Revenue (FBR) has introduced new rules to tax income earned from social media content, targeting non-resident Pakistanis.
The new tax rules will target all those individuals who generate income through user interactions in Pakistan. The new rules were notified through a notification, SRO 1642 of 2026, released on Wednesday.
In the budget, the government had introduced a five per cent tax rate on social media content earnings.
Under the new rules, anyone earning money from social media content will be taxed if their audience crosses a certain size. The threshold has been set at more than 50,000 users in a year or 12,250 users in a quarter.
Regulations will target individuals who generate income through social media user interactions in Pakistan
Tax officials have begun identifying high-earning social media accounts with millions of followers that have remained outside the tax net.
The move comes at a time when social media has emerged as a major source of income, with earnings running into millions annually. The race for maximum followers is no longer about fame or status, but about monetising platforms to earn money through digital content.
Unlike traditional earnings from trade or services, income on social media is largely generated through audience engagement and viewership.
For those who qualify for taxation, the minimum taxable income will be calculated by taking the total earnings from social media and subtracting expenses, which can be claimed only up to 30 per cent of revenue.
Under the rules, the remuneration is defined as the higher of actual earnings or revenue-per-mille (fixed at Rs195 per 1,000 views on YouTube, subject to revision). The individuals will pay advance tax quarterly and declare income in a special section of their annual return.
Commissioners are empowered to rectify under-declarations.
According to the rules, the higher of either the assessed income or remuneration received by a person from their social media content, whether in cash or kind, will be considered taxable income.
The rules also define that a social media platform means an internet-based service whose primary purpose is to enable users to interact with other users and share user-generated content, where the economic value of the service arises from user participation, network effects, and the monetisation of user engagement or user data.
It further said that social media content means any digital information, communication, or creative material generated or published by a user on a social media platform, the value of which arises from user engagement, audience reach, or platform-facilitated dissemination, including content capable of generating advertising, sponsorship or other monetisation revenue.
Published in Dawn, September 24th, 2026
