Pakistan’s Federal Board of Revenue (FBR) has proposed expanding its income tax rules beyond YouTube to cover all social media platforms. The draft notifications replace the word “YouTube” with “social media platforms” in two separate provisions of the Income Tax Rules, 2002.
The first proposed amendment targets clause (d) of sub-rule (1) of rule 13ZP in Chapter IIA. The second targets the same clause in rule 19R under Chapter VA. Both changes draw authority from section 99C and section 237 of the Income Tax Ordinance, 2001.
This proposal builds on the government’s broader push to tax digital earnings. In the Finance Bill 2026, Islamabad introduced Section 154B, which established a 5% withholding tax on social media income. That provision already named YouTube, Facebook, Instagram, and TikTok. Banks and financial institutions now deduct this tax when creators receive payments.
However, the existing Income Tax Rules still reference YouTube specifically in certain provisions. By replacing that platform-specific language, the FBR aims to close this gap. As a result, any income earned through content creation on any social media service would fall under the same tax framework.
Under the current rules, creators must declare social media income separately in their annual tax returns. They can claim up to 30% of their revenue as allowable expenses. The FBR also uses a revenue-per-mille method, currently set at Rs 195 per 1,000 YouTube views, to estimate earnings. If declared income falls below this estimate, the tax commissioner can revise the return upward.
Creators with over 50,000 annual subscribers or 12,250 per quarter fall within the tax net. They must also make advance tax payments four times a year.
The FBR has invited stakeholders to submit objections and suggestions within seven days of publication in the official Gazette. The amendments remain at the draft stage and have not yet taken effect.
