The Federal Board of Revenue (FBR) said on Thursday that individuals earning substantial income from social media have come under its scrutiny, as a decision has been taken to bring all social media influencers and content creators into the tax net.
According to the FBR, YouTubers, TikTokers and Instagram influencers will fall within the scope of the law. A draft amendment to the Income Tax Rules 2002 has been prepared. The law will apply to Pakistani citizens earning through social media.
Income generated from social media, including earnings from sponsorships and advertisements, will also fall under the law. It will apply to interaction with users based in Pakistan on social media platforms.
The document states that taxable income will be determined on the basis of earnings and expenditures related to social media. Average views and annual social media posts will be taken into account.
Income tax will be payable under a specified formula. This income will also be declared separately in annual income tax returns. A deadline of one week has been set for submission of objections or recommendations on the draft, after which the amendments will be finalised.
