FBR brings social media platforms into tax regimes

The Federal Board of Revenue has put in place a formal procedure to bring income from YouTube, Facebook, TikTok, Instagram and other social media platforms under the tax system, according to Business Recorder. The framework, issued on Wednesday, makes individuals who earn from social media content liable to withholding tax. Specific rules for calculating and collecting that tax are still being developed.

A separate procedure governs money received through social media platforms, including earnings from digital content and sums paid to creators and influencers. Tax experts quoted by the newspaper said advance tax would be paid quarterly. The FBR has also set out how social media earnings will be built into the wider tax framework.

Income earned on the leading platforms therefore falls within the taxable base under the revised framework. Taxpayers must report this income in a dedicated section of their income tax return for every tax year, the FBR said.