ISLAMABAD: Pakistan's tax authority has notified a special procedure for taxing income from social media content, using a formula based on view counts to set a minimum taxable income for resident creators.
The Federal Board of Revenue issued the rules Wednesday in Statutory Regulatory Order 1641(I)/2026. They add a new chapter to the Income Tax Rules, 2002, under Section 99C of the Income Tax Ordinance, 2001. A draft of the amendments was published April 1 in Order 546(I)/2026, as the law requires.
The rules cover every resident who earns income from interaction with users in Pakistan through social media platforms. Content is defined broadly as any digital information, communication or creative material whose value comes from user engagement, audience reach or a platform's distribution, including content that can generate advertising, sponsorship or other revenue.
A creator's minimum income for a tax year will be total remuneration minus expenses. Expenses are capped at 30% of total revenue.
Total remuneration will be the higher of two figures: the revenue per mille multiplied by total views divided by 1,000, or the actual pay received, whether in cash or in kind.
The order sets revenue per mille, defined as revenue generated per 1,000 views on a YouTube video, at 195 Pakistani rupees. The rate is subject to revision.
By that formula, a creator whose videos draw 1 million views in a year would be deemed to have earned Rs195,000 unless actual earnings were higher. The example is an illustration and does not appear in the order.
Creators who believe their actual pay is lower than the formula figure must show evidence "to the satisfaction of the Commissioner," the order says.
Those covered must pay advance income tax each quarter, calculated the same way, under Section 147 of the Ordinance. Income from social media content must be declared in a special part of the annual tax return.
If declared income falls short of the calculated amount, the relevant commissioner may correct the return and recover the tax owed.
The order defines a social media platform as an internet-based service whose main purpose is to let users interact and share content, and whose economic value comes from user participation, network effects and monetization of engagement or data.
The order sets a rate only for YouTube and none for other platforms. It was signed by Muhammad Amin Qureshi, secretary for rules and statutory regulatory orders.
