The Pakistani tax authority has announced the introduction of a special procedure for taxing non-residents who earn money from social media content targeted at domestic users.
According to the Federal Board of Revenue circular (SRO 1642(I)/2026), this rule applies to any non-resident who receives income from interacting with Pakistani users via social media platforms, provided they exceed a set threshold. This threshold is more than 50,000 users within a tax year or 12,250 users per quarter.
An individual's minimum income from paid social media content for a tax year is determined as total remuneration (A) minus total expenses (B). Expenses are limited to 30 percent of the total income.
Total remuneration is defined as the greater of two amounts: either revenue per thousand views multiplied by the total number of views and divided by 1000; or the actual received remuneration, regardless of whether it was received in cash or in kind.
For the purpose of calculating Revenue Per Mille (RPM), which applies to YouTube videos, it is set at 195 Pakistani Rupees (PKR), with the possibility of periodic review. If an individual believes their remuneration is lower than the amount calculated using the RPM formula, they must provide evidence satisfactory to the Commissioner.
Revenue Per Mille (RPM) is an issuer-side metric that estimates the potential earnings of a website owner or content creator for every 1000 views or impressions.
Every individual falling under this procedure must pay advance income tax calculated for one quarter using the same methodology. This amount is subject to payment or refund according to Section 147 of the Ordinance. Income must be declared in a specific section of the tax return for each tax year.
If the declared income is lower than the amount calculated according to the rules, the relevant commissioner has the right to adjust the declaration and recover the due amount according to the Ordinance. Provisions of the Ordinance not specifically covered will apply to such taxpayers with necessary modifications.
The rules define a 'social media platform' as an internet service whose primary purpose is to allow users to interact with and share user-generated content, where economic value arises from participation, network effects, and the monetization of engagement or data. 'Paid social media content' is content that generates remuneration 'in any form,' including advertising, sponsorship, or other monetization income.