Social Media Tax FBR sets minimum taxable income formula for creators

Social Media Tax rules introduced by Pakistan’s Federal Board of Revenue (FBR) will set a minimum taxable income for resident creators based partly on the number of views their content receives.

The FBR issued the rules through Statutory Regulatory Order (SRO) 1641(I)/2026 on Wednesday. The changes add a new chapter to the Income Tax Rules, 2002, under Section 99C of the Income Tax Ordinance, 2001.

The rules apply to residents earning income through interaction with users in Pakistan on social media platforms. They broadly define content as digital information, communication or creative material whose value comes from audience engagement, reach or platform distribution.

Under the new system, a creator’s minimum income for a tax year will be calculated after deducting allowable expenses. Such expenses will be capped at 30% of total revenue.

The creator’s total remuneration will be the higher of two amounts: the income calculated using the prescribed revenue-per-mille rate and total views, or the actual amount received by the creator in cash or in kind.

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For YouTube, the FBR has set the revenue-per-mille rate at Rs195 for every 1,000 views. The authority said the rate can be revised in the future.

Under the formula, one million annual views would produce a calculated remuneration of Rs195,000 before the applicable expense deduction. This is an illustration of the formula and is not an example included in the FBR order.

Creators who believe their actual earnings are lower than the amount calculated under the formula will have to provide evidence to the satisfaction of the relevant tax commissioner.

Those covered by the rules will also have to pay advance income tax every quarter under Section 147 of the Income Tax Ordinance. Income earned from social media content must be reported in a designated section of the annual tax return.

If a creator declares income below the amount calculated under the prescribed formula, the relevant commissioner can amend the return and recover any outstanding tax.

The order defines a social media platform as an internet-based service that enables users to interact and share content, with economic value derived from participation, network effects and the monetisation of engagement or data.

The FBR has so far specified a revenue-per-mille rate only for YouTube. No separate rate has been prescribed for other social media platforms under the order.

The rules follow draft amendments published by the FBR on 1 April under SRO 546(I)/2026, as required by law.