ISLAMABAD: Finance Act 2026 has imposed 5 percent withholding tax on revenues received by digital content creators/social media influencers through social media platforms from July 1, 2026.
According to the Finance Act 2026 issued on Monday, every banking and non-banking financial institution shall, at the time of credit or receipt of any amount in an account of a person, deduct tax at the rate specified, where such amount represents revenues received from social media platforms.
For the purposes of this section, the digital content creator or social media influencer means any individual or entity deriving income from creation, publication, or monetisation of content on digital platforms including but not limited to YouTube, Facebook, Instagram, TikTok or such other similar platforms; and payment includes any inward remittance, transfer, or credit received through banking channels, including through intermediaries such as online payment service providers or digital financial platforms.
The tax deducted under this section shall be minimum in the case of a resident person; and final tax in the case of a non-resident person not having a permanent establishment in Pakistan.
The Board may, by notification in the official Gazette, prescribe rules for implementation, including identification and reporting mechanisms, it added.
Copyright Business Recorder, 2026
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