Insertion of new chapter-VA, in respect of Special Procedure for Taxation of Persons Earning Income from Remunerative Social Media Content

GOVERNMENT OF PAKISTAN (REVENUE DMSION) FEDERAL BOARD OF REVENUE :k,r**rr* Islamabad the 1't April, 2026. NOTIFICATION (Income Tax) S.RO. 545(I)/2026. The following draft of certain further amendments in the Income Tax Rules. 2002. which the Federal Board of Revenue proposes to make, in exercise of the powers conferred by section 99C read with clause (b) of sub-section (3B) ofsection 101 and sub-section (1) ofsection 237 of the Income Tax Ordinance,2001 (XLX of200l), is hereby published for information of all persons tikely to be affected tbereby and, as required by sub- section (3) ofthe said section 237, notice is hereby given that objections or suggestions thereon, if any. may for consideration of the Board. be sent within seven days of publication of this Notification in the official Gazette. Objections or suggestions received, ifany, before the expiry ofthe said period shall be taken into consideration by the Federal Board ol Revenue, namely: Draft amendments In the aforesaid Rules, after Chapter V, the following new Chapter shall be inserted, namely: *CHAPTER-VA SPECIAL PROCEDUR-E FOR TAXATION OF PERSONS EARNING INCOME FROM RXMUNERATIVE SOCIAL MEDIA CONTENT The rules in this chapter shall apply fbr the purpose of19J. Application of Chapter. - section 99C ofthe Income Tax Ordinance. 2001 (XLIX of2001) to provide special procedure lbr computation of income of non-resident persons eaming income fiom remunerative social media content- l9K. Scope. Every non-resident person deriving income from interaction with users in Pakistan through social media platforms to the extent such income constitutes Pakistan-source income under clause (b) ofsub-section (3B) ofsection l0l ofthe Income Tax Ordinance, 2001 (XLIX of 2001 ), subject to the prescribed threshold under these rules. l9L. Systemic and Continuous Soliciting of Business Activities or Engaging in Interaction through Digital Means.- (1) The threshold for number ofu.sers for the purposes ofclause (b) oi sub-section (3B) of section 101 ofthe Income Tax Ordinance,2001 shall be. namely:- S. No Category Prcscribed threshold (l ) (2) (3) I Number ol users to qualify for "Systemic and Exceeding fifty thousand Continuous Soliciting of Business Activities or users during a tax year or Engaging in Interaction through Digital Means" twelve thousand two hundred and fifty users during a quarter''

l9M. Calculation of Income from remunerative Social Media Content. The minimum income of a person from remunerative social media content shall be calculated as per the fbllowing formula. namely:- (A_B) Wherc A is total remuneration received fiom social media content; and B is total expenses made; up to maximum of 30o% of total revenue The total remuneration received by a person froml9N. Total remuneration received. -remunerative social media content shall be the higher of- (a) revenue per mille x average number of views per content x total number of posts during the year. or (b) the actual remuneration received by a person from the social media content whether received in cash or kind. under this special procedure shall pay19O. Payment ofAdvance Tax. - Every person advance income tax calculated by applying the procedure given in rule -l9M and rule-19N 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 . Thel9P. Declaration of Income from remunerative social media content. - (l) declaration of such income shall be made in a special part of Income Tax Retum for each tax year. (2) Where the declaration ollncome is less than the amount calculated in rule -19M and rule-19N, the relevant commissioner may rectifr this error olomission or commission in the return and proceed to recover the amount due from the taxpayer as per the provisions ofthe lncome Tax Ordinance, 2001 . l9Q. Provisions ofthe Ordinance to apply.- The provisions of the Ordinance not specifically dealt with in the aforesaid rules shall apply. mutatis mutandis, to persons earning income from remunerative social media content. (1) In this procedure. unless there is anything repugnant in thel9R. Definitions. - subiect 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 of user engagement or user data; (b) "Social media content" means any digital inibrmation, communication. or creative material generated or published by a user on a social media platform. the value of which arises f'rom 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 form:

generated per 1000 views on the video (d) "Revenue per mille" means the revenue shared on Youtube. For the purpose of this Special Procedure, it shall be taken as PKR 195 and is subject to revision lrom time to time; and (e) "Ordinance" means the Income Tax Ordinance. 2001. (2) All other expressions used but not defined in these rules shall have the meaning assigned to them under the Income Tax Ordinance, 2001 . [No. 1(l)R&S/20261 (M Qureshi) Secretary (Rules & SRO)