Pakistan taxes non-resident influencers under new FBR rules

Pakistan’s Federal Board of Revenue has introduced new rules to tax income earned from social media content by non-residents, extending the tax net to foreign creators and non-resident Pakistanis earning from Pakistani audiences.

The rules were notified through SRO 1642 of 2026, released on Wednesday. They target all individuals who generate income through user interactions in Pakistan once their audience crosses a defined threshold: more than 50,000 users in a year, or 12,250 users in a quarter.

Under the framework, minimum taxable income is calculated by taking total earnings from social media and subtracting expenses, which can be claimed up to 30 per cent of revenue. Remuneration is defined as the higher of actual earnings or revenue-per-mille, fixed at Rs195 per 1,000 views on YouTube and subject to revision. A five per cent tax rate on social media content earnings had already been introduced in the budget.

Those qualifying will pay advance tax quarterly and declare the income in a special section of their annual return. Commissioners are empowered to rectify under-declarations, and tax officials have begun identifying high-earning social media accounts with millions of followers that have remained outside the tax net.

The move lands as social media earnings run into millions annually, with platforms monetised through audience engagement and viewership rather than traditional trade or services.