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Pakistan Introduces New Tax Rules for Social Media Content Creators

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Pakistan Introduces New Tax Rules for Social Media Content Creators

THE WHAT? Pakistan has introduced new taxation rules for YouTubers and other social media creators, using assumed earnings based on content views to calculate taxable income where this exceeds their reported remuneration.

THE DETAILS The Federal Board of Revenue will calculate taxable creator income using either actual remuneration or estimated earnings of Rs195 (US$0.70) per 1,000 views, whichever is higher. The benchmark will apply across YouTube, Facebook, Instagram and TikTok, while deductible expenses will be capped at 30 percent. Creators earning below the assumed rate will be required to provide evidence to tax authorities. The rules follow the introduction in July of a 5 percent withholding tax applied by banks when social media platform revenue is paid into creators’ accounts.

THE WHY? The measures could increase operating costs for Pakistan’s creator economy and affect brands and agencies using influencer marketing, with industry experts warning that the assumed-income model and restrictions on deductible production costs could encourage creators to establish businesses or payment structures outside the country.



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