The Federal Board of Revenue (FBR) has introduced a mechanism to bring earnings generated through social media platforms into Pakistan’s formal tax system.
Under the new framework, income earned by content creators and influencers through platforms including YouTube, Facebook, TikTok and Instagram will be subject to income tax under applicable tax laws.
The FBR has said that individuals generating income from social media content are already covered by the existing tax system and are required to pay tax on their earnings.
The newly introduced mechanism is aimed at establishing a dedicated procedure for handling payments received through social media platforms. It will cover income generated through digital content as well as payments made to creators and influencers.
The move is intended to incorporate social media earnings more systematically into the country’s broader tax framework.
However, the exact tax treatment of individual creators will depend on the applicable tax rules, including how their income is calculated and how payments received from digital platforms are reported and taxed.
