ISLAMABAD – Federal Board of Revenue (FBR) has approved new tax rules for non-resident social media influencers.
The FBR introduced a 5% tax on income earned through social media platforms.
FBR Chairman Rashid Mahmood Langrial approved the rules as part of the government’s efforts to bring digital earnings generated by non-resident Pakistanis and other individuals within the country’s tax framework.
Under the new rules, income earned by non-resident social media influencers through digital platforms will be subject to a 5% tax. The measure is aimed at expanding the tax net and ensuring that income generated through social media activities is brought into the formal taxation system.
The FBR has been working to improve tax collection from emerging sources of income as digital platforms and social media have created new opportunities for individuals to generate revenue through content creation, advertising, brand partnerships and other online activities.
The new framework specifically targets non-resident individuals earning income through social media while operating or generating taxable income linked to Pakistan. The move is expected to provide the tax authorities with a mechanism to collect revenue from a growing segment of the digital economy.
Social media influencers can generate income through multiple channels, including sponsored content, advertisements, paid promotions, subscriptions and commercial collaborations. The introduction of a specific tax rate seeks to establish a clearer mechanism for taxing such earnings.
The FBR’s decision comes amid broader efforts to widen Pakistan’s tax base and improve compliance. The government has increasingly focused on documenting economic activity and bringing previously untaxed or difficult-to-monitor sources of income into the formal tax system.
The new rules are expected to provide a framework for the taxation of social media earnings by non-residents and clarify the applicable rate for such income.
The FBR has also been pursuing measures aimed at improving digital monitoring and strengthening the collection of taxes from sectors where income has traditionally been difficult to track.
