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

GOVERNMENT OF PAKISTAN (REVENUE DIVISION) FEDERAL BOARD OF REVENUE ,.***** lslamabad the l'1 April, 2026 NOTIFICATION (Income Tax) S.R.O. 546(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 sub-section (l ) of section 237 of the Income Tax Ordinance, 2001 (XLX of200l), is hereby published for information ofall persons likely to be affected thereby and. as required by sub-section (3) of the said section 237, notice is hereby given that objections or suggestions thereon. ifany. may for consideration ofthe Board. be sent within seven days of publication of this Notification in the official Cazette. Objections or suggestions received, if any, before the expiry of the said period shall be taken into consideration by the Federal Board ofRevenue. namely: - Draft amcndments In the albresaid Rulgs, after Chapter Il. the following new Chapter shall be inserted, namely: *CHAPTER.IIA SPECIAt, PROCEDURE FoR TAXATION OF PERSONS EARNING INCOME FROM REMUNERAI'IVE SOCIAL MEDIA CONTENT 132I. Application ofChapter. The rules in this chapter shall apply for the purpose of - section 99C of the Inconre Tax Ordinance. 2001 (XLIX o12001) to provide special procedure fbr computation olincome of resident persons eaming income from remunerative social media content- l3ZJ. Scope. Every resident person deriving income from interaction with users in Pakistan through social media platforms.. Thel3ZK. Calculation of Income from remunerative Social Media Content. - minimum income of a person from remunerative social media content shall be calculated as per the following formula. namely:- (A r]) Where is total remuneration received from social media content: and B is total expenses madel up to maximum of 30% oftotal revenue.

l3ZL. ToJal remuneration received. The total remuneration received by a person from remunerative social media content shall be the higher ol (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. payl3ZL. Payment of Advance Tax. - Every person under this special procedure shall advance income tax calculated by applying the procedure given in rule-l3ZK and rule-132L above for one quarter and shall be payable or recoverable, as the case may be. as per provisions of section 147 ofthe Income Tax Ordinance. 2001 . ( I The )132M. 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 year. (2) Where the declaration ol 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 1o recover the amorint due from the taxpayer as per the provisions ofthe Income Tax Ordinance. 2001 . 132N. Provisions ofthe Ordinance to apply.- The provisions ol the Ordinance not specilically dealt with in the aforesaid rules shall apply. mutatis mutandis. Io persons eaming income from remunerative social media content. l3ZO. Definitions.-(l) In this procedure. unless there is anything repugnant in the subject 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 information. 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 contcnt capable of generating advertising, sponsorship. or other monetization revenue; (c) "Remunerative social media content" means the social media content which derives remuneration in whatsoever fbrm: (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 (e) "Ordinance" means the Income'Iax 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. lNo. 1(1)R&S/20261 (Muhammad in Qureshi) Secretary (Rules & SRO)