The Federal Board of Revenue (FBR) has introduced new rules for calculating and declaring income earned by social media influencers, setting Rs195 per 1,000 YouTube views as a benchmark for remuneration and allowing expenses of up to 30% of total revenue to be deducted.
The new rules distinguish between resident and non-resident persons earning income through social media. They apply to residents earning through interactions with users in Pakistan and to non-residents whose social media earnings qualify as Pakistan-source income and meet a prescribed user threshold.
The FBR issued three separate notifications establishing the special taxation procedure for persons earning income from remunerative social media content.
Through SRO 1640(I)/2026, issued under Section 99C of the Income Tax Ordinance, 2001, the FBR formally designated “Persons Earning Income from Remunerative Social Media Content” as a sector for which a special taxation procedure may be prescribed.
Rules for resident social media earners
For resident persons, SRO 1641(I)/2026 introduced Chapter-IIA into the Income Tax Rules, 2002. The procedure applies to residents earning income through interactions with users in Pakistan on social media platforms.
Under the new mechanism, the minimum income from remunerative social media content will be calculated by deducting allowable expenses from total remuneration. Expenses can be recognised up to a maximum of 30% of total revenue.
The total remuneration will be whichever is higher: the amount calculated using the prescribed revenue-per-mille (RPM) formula or the actual remuneration received from social media content, whether in cash or in kind.
The RPM formula is based on the revenue generated per 1,000 views of a YouTube video. The FBR has set the RPM at Rs195 for the purposes of the special procedure, although the rate can be revised from time to time.
Under the formula, RPM is multiplied by the total number of views and divided by 1,000.
For example, 100,000 views would result in a benchmark remuneration of Rs19,500 under the current RPM.
If an influencer claims that the actual remuneration received is lower than the amount calculated under the RPM benchmark, they will have to provide evidence to the satisfaction of the Commissioner.
The rules also require persons covered by the procedure to pay advance income tax on a quarterly basis. The amount will be calculated using the prescribed income and remuneration mechanism for the relevant quarter and will be payable or recoverable under Section 147 of the Income Tax Ordinance.
Social media income must also be declared in a designated section of the income tax return for each tax year. If the declared income is lower than the amount calculated under the special procedure, the Commissioner may rectify the omission or error and recover the resulting tax liability.
Rules for non-resident social media earners
For non-residents, SRO 1642(I)/2026 introduced a separate Chapter-VA into the Income Tax Rules, establishing a special procedure for income from remunerative social media content.
The procedure applies to non-residents earning income through interactions with users in Pakistan where the income qualifies as Pakistan-source income under the relevant provisions of Section 101 of the Income Tax Ordinance and the prescribed user threshold is met.
The FBR has defined the threshold for “Systemic and Continuous Soliciting of Business Activities or Engaging in Interaction through Digital Means” as more than 50,000 users in a tax year or 12,250 users in a quarter.
Non-residents meeting these conditions will be subject to the same basic income-calculation mechanism. Their minimum income will be determined by deducting allowable expenses from total remuneration, with expenses capped at 30% of total revenue.
As with resident persons, total remuneration will be the higher of the amount calculated using the RPM formula or the actual remuneration received in cash or in kind.
Qualifying non-residents will also be required to pay quarterly advance income tax, declare the income in a designated section of their income tax return and provide evidence to the Commissioner if they claim that their actual remuneration is lower than the amount calculated using the RPM benchmark.
How the FBR defines social media income
The notifications provide definitions for social media platforms and content covered by the new procedure.
A social media platform is defined as an internet-based service primarily enabling users to interact and share user-generated content, where economic value is generated through user participation, network effects and the monetisation of user engagement or data.
Social media content refers to digital information, communication or creative material generated or published by a user, where its value arises from user engagement, audience reach or platform-facilitated dissemination. This includes content capable of generating advertising, sponsorship or other forms of revenue.
“Remunerative social media content” refers to social media content that generates remuneration in any form.
The notifications also clarify that provisions of the Income Tax Ordinance that are not specifically addressed by these special procedures will continue to apply.
