ISLAMABAD: The Federal Board of Revenue (FBR) will ensure deduction of 5 percent Withholding Tax on revenues received from social media platforms covering “digital content creators” or “social media influencers” from July 1, 2026.
An income tax circular issued by the FBR on Tuesday revealed that a new section l54B has been inserted requiring every banking and non-banking financial institution, at the time of credit or receipt of any amount in a person’s account, to deduct tax at the rate specified in Division IIIAB of Part III of the First Schedule where such amount represents revenues received from social media platforms.
The terms “digital content creator” or “social media influencer” and “payment” have been defined for the purpose of this section.
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The tax so deducted is minimum tax 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 rate of tax to be deducted under Division IIIAB has been fixed at five percent. A consequential amendment has been made in section 169, the FBR added.
Copyright Business Recorder, 2026