FBR introduces new tax procedure for social media creators based on views

The Federal Board of Revenue (FBR) has introduced a new taxation mechanism for resident individuals earning income

ISLAMABAD, September 24, 2026: The Federal Board of Revenue (FBR) has introduced a new taxation mechanism for resident individuals earning income through social media platforms, bringing YouTubers, TikTokers, Facebook creators, Instagram influencers and other digital content producers under a formal tax framework.

According to an official notification obtained by Minute Mirror, the Revenue Division of the Government of Pakistan, through S.R.O. 1641(I)/2026 (Income Tax) dated September 23, 2026, has introduced a special procedure for taxing individuals earning remuneration from social media content.

The FBR issued the notification under its powers provided by Section 99C read with Section 237(1) of the Income Tax Ordinance, 2001. Through the notification, a new Chapter IIA has been inserted into the Income Tax Rules, 2002, titled “Special Procedure for Taxation of Persons Earning Income from Remunerative Social Media Content.”

Who will fall under the new procedure?

Under Rule 13ZJ, the procedure will apply to resident persons earning income through interactions with users in Pakistan on social media platforms.

The scope covers various forms of remuneration, including advertising revenue, sponsorships, gifts received in kind and other forms of payment generated through social media activity.

The new mechanism introduces a views-based calculation for determining minimum income for tax purposes.

Rs195 per 1,000 YouTube views

Under Rules 13ZK and 13ZL, the minimum income for a tax year will be calculated using an A-B formula.

Here, A represents total remuneration received, while B represents expenses incurred, subject to a maximum deduction of 30% of total revenue.

The total remuneration under the procedure will be determined as the higher of two amounts: the revenue calculated according to the prescribed Revenue Per Mille (RPM) based on total views, or the actual remuneration received by the creator in cash or kind.

For YouTube, the FBR has fixed the RPM at Rs195 per 1,000 views, although the notification allows the rate to be revised from time to time.

For example, a YouTuber receiving one million views would have deemed gross revenue of Rs195,000 under the prescribed rate. This amount would be calculated even if the creator’s actual platform payout is lower.

However, creators claiming that their actual income is below the views-based calculation would be required to provide evidence to the satisfaction of the concerned Commissioner.

Quarterly advance tax made mandatory

The new rules also introduce advance tax obligations for social media creators. Under Rules 13ZM and 13ZN, persons covered by the procedure will be required to pay advance income tax on a quarterly basis under Section 147 of the Income Tax Ordinance, 2001.

Creators will also have to declare their social media earnings in a designated section of their annual income tax returns.

If the income declared by a creator is lower than the amount calculated under the prescribed A-B formula, the Commissioner will have the authority to rectify the return and recover the outstanding tax amount.

The notification also formally defines terms such as “social media platform,” “social media content” and “remunerative content” for the purpose of the new taxation framework.

The notification, identified as No. 1(1)R&S/2026, has been signed by Muhammad Amin Qureshi, Secretary (Rules & SRO).

The new framework means that eligible social media creators earning income in Pakistan will have their minimum taxable income assessed using the prescribed views-based calculation or their actual remuneration, whichever is higher, after allowable expenses subject to the 30% limit.