The Federal Board of Revenue (FBR) has doubled the withholding tax rate on social media earnings of digital content creators and influencers who are not listed on the Active Taxpayers List (ATL).
Under the updated Withholding Tax Card 2026, effective from July 1, 2026, non-ATL digital content creators and social media influencers will be subject to a 10% withholding tax on revenue received from social media platforms.
The tax measure has been introduced under Section 154B of the Income Tax Ordinance following amendments made through the Finance Act 2026.
For influencers and digital content creators who are included on the ATL, the withholding tax rate has been set at 5% on earnings received from social media platforms. This means non-filers will pay twice the rate applicable to ATL taxpayers.
The updated tax card incorporates changes introduced through the Finance Act 2026 and outlines withholding tax rates applicable to different categories of taxpayers.
Separately, the FBR has also specified withholding tax rates for amounts remitted abroad through credit, debit, or prepaid cards under Section 236Y.
Under the applicable provisions, ATL taxpayers will face a 0.5% withholding tax, while the rate for non-ATL persons has been set at 1%.
The latest move further increases the tax burden on individuals earning income through digital platforms if they are not registered as active taxpayers.
