The Federal Board of Revenue (FBR) has introduced a new withholding tax for earnings received by social media content creators and social media influencers.
Under the updated tax rates, creators who are listed on the Active Taxpayers List (ATL) will face a 5% withholding tax on revenue received from social media platforms, while the rate will rise to 10% for those who are not on the ATL.
The measure took effect from July 1, 2026, following amendments introduced through the Finance Act 2026.
The FBR’s updated Withholding Income Tax Rate Card incorporates changes made under the new law.
The rates apply to income covered under Section 154B of the Income Tax Ordinance, which relates to certain payments received by digital content creators and social media influencers.
The higher rate for non-ATL taxpayers means creators who have not filed their tax returns or are otherwise not included on the active taxpayers list will have twice the withholding rate applied to their social media earnings compared with ATL taxpayers.
The development comes as Pakistan continues to expand its tax framework to cover income generated through digital platforms and the growing creator economy.
Meanwhile, the FBR has also imposed tax on overseas card payments.
Under Section 236Y, withholding tax on amounts remitted abroad through such cards has been set at 0.5% for ATL taxpayers and 1% for non-ATL persons.
The rates are provided under Division XXVII of Part IV of the First Schedule, read with Rule 1 of the Tenth Schedule to the Income Tax Ordinance.
For digital creators, the new rates make tax-filing status increasingly important, as being included on the ATL can reduce the withholding tax applied to qualifying social media income from 10% to 5%.
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