FBR proposes expanding tax rules from YouTube to all social media platforms

The Federal Board of Revenue has proposed extending its income tax rules, currently limited to YouTube, to every social media platform, Business Recorder reported. If adopted, the change could reach a larger pool of online creators and digital services. The FBR has drafted notifications that would replace the YouTube reference with the phrase social media platforms in two separate provisions of the Income Tax Rules, 2002.

The first draft targets Chapter IIA and rule 13ZP, changing clause (d) within its first sub-rule, and draws its authority from section 99C and section 237 of the Income Tax Ordinance, 2001. A second notification proposes a parallel edit to clause (d) of rule 19R in Chapter VA, which also rests on section 101 of the same ordinance. Both drafts remain at the proposal stage and have not been finalised or brought into force.

Anyone likely to be affected has a week, counted from the Gazette publication of the drafts, to lodge objections and suggestions. Submissions received in that window will be reviewed by the Board before any further action is taken.