The Federal Board of Revenue (FBR) has proposed extending the scope of existing income tax rules from YouTube to all social media platforms, potentially bringing more online content creators and digital platforms under the same framework.
The tax authority has drafted two notifications seeking changes to the Income Tax Rules, 2002. Both proposals replace the specific reference to “YouTube” with the broader term “social media platforms”.
If approved, the amendments could extend the relevant provisions beyond YouTube to other social media services, widening the scope of the existing rules.
The first proposed change relates to clause (d) of sub-rule (1) of rule 13ZP in Chapter IIA of the Income Tax Rules, 2002. The FBR has proposed the amendment under section 99C, read with sub-section (1) of section 237 of the Income Tax Ordinance, 2001.
The second amendment concerns clause (d) of sub-rule (1) of rule 19R in Chapter VA of the same rules. It is proposed under section 99C, read with clause (b) of sub-section (3B) of section 101 and sub-section (1) of section 237 of the Income Tax Ordinance, 2001.
The proposed wording would remove the rules’ specific focus on YouTube and replace it with a term covering social media platforms more broadly. However, the draft notifications do not specify any new tax rates or establish additional tax obligations on their own.
The FBR has invited objections and suggestions from people who may be affected by the proposed changes. Stakeholders have seven days from the publication of the draft notifications in the official Gazette to submit their feedback.
The Board will consider the submissions received within the deadline before deciding on the next steps.
The proposals remain at the draft stage. The FBR has not yet confirmed that the amendments have been finalised or brought into force.
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