FBR social media tax rules could soon apply well beyond YouTube, according to draft notifications that would widen the wording of two provisions in the Income Tax Rules, 2002.
What the draft changes
As Business Recorder reported, the Federal Board of Revenue proposes replacing the word YouTube with the phrase social media platforms in clause (d) of sub-rule (1) of rule 13ZP, which covers resident persons, and in the same clause of rule 19R, which covers non-residents. The drafts are issued under section 99C of the Income Tax Ordinance, 2001, read with sections 101 and 237.
Stakeholders have seven days from the drafts’ publication in the official Gazette to send objections and suggestions. The changes are still drafts and are not in force.
How the FBR social media tax rules work today
The special procedure for creators was notified on September 23 through three notifications, SRO 1640, 1641 and 1642, Business Recorder reported at the time. Under it, a creator’s minimum income is the higher of a views-based estimate or the remuneration actually received, less expenses capped at 30 percent of revenue. The views-based estimate uses a revenue-per-thousand-views rate, currently Rs195 per 1,000 YouTube views, which can be revised.
Creators who earned less than the estimate must satisfy the Commissioner with evidence such as payout statements or bank records. Quarterly advance tax applies, and social media earnings must be declared in a separate part of the annual return.
What it could mean for creators
The drafts do not announce new rates. If finalised, Daily Pakistan reported, the same estimate mechanism could extend to income earned on Facebook, Instagram, TikTok and other services, although it is not stated whether the Rs195 figure would apply to them. Creators who earn from platforms other than YouTube should watch for the Gazette notice, review how their income is recorded, and consider taking professional tax advice before the objection window closes.
