The Federal Board of Revenue (FBR) has introduced new rules for taxing income earned by non-resident individuals through social media content. The rules, notified through SRO 1642(I)/2026, apply to non-residents earning Pakistan-source income through interactions with users in Pakistan.
The move comes as social media platforms have become an increasingly important source of income for content creators, influencers and digital personalities.
FBR Sets User Threshold for Social Media Tax
Under the new rules, the tax regime will apply when a non-resident’s interaction with users in Pakistan crosses a specified threshold.
The threshold is set at more than 50,000 users during a tax year or 12,250 users during a quarter.
The rules cover income generated through social media platforms where interaction with Pakistani users creates Pakistan-source income under the Income Tax Ordinance.
FBR officials have also started focusing on high-earning social media accounts that have remained outside the tax system.
Five Per Cent Tax on Social Media Earnings
The government introduced a 5% tax rate on income earned through remunerative social media content under the 2026-27 tax measures.
The new framework establishes a specific procedure for calculating, declaring and paying tax on such earnings.
The rules apply to income generated through activities such as advertising, sponsorships and other forms of social media monetisation.
This brings digital content earnings under a more clearly defined tax mechanism.
How Will Taxable Income Be Calculated?
The rules provide a formula for determining the minimum income from remunerative social media content.
Expenses can be deducted up to 30% of total revenue, subject to the applicable rules.
The framework also considers the remuneration received by a person from social media content, whether received in cash or in kind.
For non-residents, the rules specifically apply where the income qualifies as Pakistan-source income through interaction with users in Pakistan.
YouTube Views to Help Determine Income
The new procedure also introduces a revenue-per-mille mechanism for calculating remuneration.
The prescribed rate is Rs195 for every 1,000 YouTube views, although the rate can be revised under the rules.
This provides FBR with a method to estimate income where the actual remuneration reported by a content creator does not adequately reflect the revenue generated through social media activity.
Tax authorities can also take action where they identify under-declaration of income.
What Counts as Social Media Content?
The rules provide a broad definition of social media content.
It covers digital information, communication or creative material created or published by users on social media platforms.
The value of such content must arise from audience engagement, reach or platform-facilitated distribution.
The definition also includes content capable of generating advertising, sponsorship or other forms of revenue.
Meanwhile, a social media platform is defined as an internet-based service that allows users to interact and share user-generated content, with economic value linked to participation, network effects or monetisation of engagement and user data.
Separate Rules Cover Resident Creators
FBR has also introduced a separate framework for resident individuals earning income from remunerative social media content.
SRO 1641(I)/2026 establishes the special procedure for resident persons, while SRO 1642(I)/2026 deals specifically with non-residents.
Together, the new measures create a more structured tax framework for Pakistan’s growing digital-content economy.
FBR Expands Focus on Digital Earnings
The new rules reflect the growing role of social media as a source of income.
For many creators, earnings now come through a combination of advertising, sponsorships, platform payments and audience-based monetisation.
The FBR’s new framework seeks to bring these earnings into a formal tax structure, particularly where non-resident creators generate Pakistan-source income through substantial interaction with users in the country.
The measures could therefore increase scrutiny of high-earning social media accounts while giving tax authorities a defined mechanism for assessing digital-content income.
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