Get ready YouTubers, more taxes are coming..!
The government has unveiled proposed changes aimed at taxing overseas Pakistani YouTubers who generate substantial income from audiences within Pakistan.
Under the plan, authorities intend to collect Rs195 for every 1,000 views on monetized content viewed locally, potentially translating into an effective tax rate ranging from 16% to 66%, depending on earnings and audience geography.
The Federal Board of Revenue (FBR) has introduced these amendments to the Income Tax Rules, allowing a brief consultation period of seven days. Using special powers granted to the finance minister, the FBR seeks to establish a framework for taxing digital earnings derived from Pakistani viewership.
These rules would apply specifically to non-resident individuals producing monetized social media content accessed in Pakistan. The policy targets creators with significant engagement—those exceeding 50,000 annual users or 12,250 quarterly users.
Income calculations would consider total earnings from content, allowing expense deductions of up to 30%. Creators would be taxed based on either estimated revenue from views or actual earnings, whichever is higher. Implementation, however, would likely depend on cooperation from platforms like YouTube.
