Pakistan is planning to introduce taxation on income earned through social media platforms such as YouTube, TikTok, and Instagram as part of broader efforts to document digital earnings and expand the country’s tax base.
According to officials, the Federal Board of Revenue (Federal Board of Revenue) has drafted a special taxation framework aimed at regulating income generated from content creation and online monetisation. The proposed rules are designed to bring social media earnings into the formal tax net.
Under the draft proposal, income earned by digital creators would be assessed based on earnings generated through advertising revenue, brand partnerships, audience engagement, sponsorships, and other monetisation methods. Authorities are working on defining clear guidelines to determine taxable income after allowable deductions.
Officials added that the initiative is part of ongoing reforms to ensure transparency in the digital economy and to align taxation policies with the growing trend of online content creation in Pakistan. The proposal is currently under consideration and has not yet been implemented.
