Chapter IIA Special Procedure for Taxation of Persons Earning Income from Remunerative Social Media Content

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) FEDERAL BOARD OF REVENUE ****** Islamabad the 23'd September, 2026 NOTIFICATION (Income Tax) S.R.O. 1641(I)/2026. - In exercise of the powers conferred by section 99C read with sub- section (l) of section 237 of the Income Tax Ordinance.2001 (XLX of200l), the Federal Board of Revenue is pleased to direct that the following further amendments shall be made in the lncome Tax Rules, 2002, which as required by sub-section (3) of section 237 of the said Ordinance were previously published vide Notification No. S.R.O.546 (I)12026, dated I't April, 2026. namely: - In the aforesaid Rules, after chapter II. the following new chapter shall be inserted, namely: - "CHAPTER-IIA SPECIAL PROCEDURE FORTAXATION OF PERSONS EARNING INCOME FROM REMUNERATIVE SOCIAL MEDIA CONTENT 132I. Application ofchapter. - The rules in this chapter shall apply for the purpose ofsection 99C of the Income Tax Ordinance,2001 (XLIXof 2001) to provide special procedure for computation of income ol resident persons eaming income from remunerative social media content. Every resident person deriving income from interaction with users in 132J. Scope. - Pakistan through social media platforms. The l3ZK. Calculation of income from remunerative social media content. - minimum income ofa person from remunerative social media content for a tax year shalI be calculated as per the following formula, namely:- (A-B) Where - A is total remuneration received from social media content; and B is total expenses made; up to maximum oi30%o oltotal revenue remuneration received by a person l3ZL. Total remuneration received. - The total from remunerative social media content shall be the higher oi (a) revenue per mille x (total number ofviewsi 1000); or (b) the actual remuneration received by a person from the social media content whether received in cash or kind: Provided that where a person is ofthe view that the total remuneration received is less than threshold prescribed at clause (a) above, the person is required to demonstrate evidence to this effect to the satisfaction of the Commissioner.

132M. Payment of advance tax. Every person under this special procedure shall pay advance income tax calculated by applying the procedure given in rule 13ZK and rule 13ZL above for one quarter and shall be payable or recoverable, as the case may be, as per provisions of section 147 of the Income Tax Ordinance.2001 (XLX of2001). ( I The l3ZN. Declaration of income from remunerative social media content. - ) declaration of such income shall be made in a special part of Income Tax Retum for each tax vear. (2) Where the declaration of income is less than the amount calculated in rule l3ZK and rule 132L, the relevant commissioner may rectify this error of omission or commission in the retum and proceed to recover the amount due from the taxpayer as per the provisions of the Income Tax Ordinance, 2001 (XLX of 2001). The provisions of the Ordinance not 1320. Provisions of the Ordinance to apply. - specifically dealt with in the aforesaid rules shall apply, mutatis mutandis. to persons eaming income lrom remunerative social media contenl. unless there is an1'thing repugnant in the subject l3ZP. Definitions. - (1) In this procedure, or context, - (a) "Social media platform" means an intemet-based service whose primary purpose is to enable users to interact with other users and share user-generated content. where the economic value ofthe service arises from user participation. network effects, and the monetisation ofuser engagement or user data; (b) "Social media content" means any digital inlbrmation, communication, or creative material generated or published by a user on a social media platform. the value of which arises from user engagement, audience reach. or platform-facilitated dissemination, including content capable of generating advertising, sponsorship. or other monetization revenue; (c) "Remunerative social media content" means the social media content which derives remuneration in whatsoever lorml (d) "Revenue per mille" means the revenue generated per 1000 views on the video shared on Youtube. For the purpose of this Special Procedure, it shall be taken as PKR 195 and is subject to revision from time to time; and means the Income Tax Ordinance" 2001 (XLX of2001). (e) "Ordinance" (2) All other expressions used but not defined in these rules shall have the meaning assigned to them under the Income Tax Ordinance. 200 I (XLIX of 2001). [No. 1(1)R&S/2026] (Muhamma in Qureshi) Secretary (Rules & SRO)