Pakistan is preparing to bring income earned from social media platforms into the formal tax system under a new framework proposed by FBR.
The proposed rules will apply to content creators earning money through platforms such as YouTube, TikTok, Instagram, Facebook, and X.
The move is part of broader efforts to document digital income and expand the country’s tax base as the creator economy continues to grow.
Under the draft framework, the FBR has proposed using a fixed rate of Rs. 195 per 1,000 views to estimate minimum taxable income for content creators.
Tax authorities will compare this calculated amount with a creator’s actual earnings, and the higher figure will be used for taxation purposes.
The proposed regulations would also require digital creators to declare all social media earnings in their annual tax returns. In addition, creators may be required to pay advance tax every quarter instead of waiting until the end of the tax year.
Officials say the goal is to ensure that income generated through online platforms is treated in the same way as earnings from other professions and businesses.
As more Pakistanis earn money through digital content, authorities believe it is important to bring these income streams under a transparent and documented tax framework.
The proposal covers monetized income from advertisements, platform payouts, sponsorships, brand collaborations, and other online revenue sources.
Tax experts believe the new system could improve compliance and increase government revenue from the rapidly growing digital sector.
The draft regulations are currently under review and have not yet been finalized. If approved, the new rules will formally integrate social media earnings into Pakistan’s tax system.