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Income from YouTube, sponsorships and other social media content has always been taxable in Pakistan. What is new is a special procedure for working it out. On 23 September 2026, FBR notified rules under section 99C of the Income Tax Ordinance, 2001 that set a minimum income for persons earning from "remunerative social media content", based on views as well as actual receipts.
The three notifications
- S.R.O. 1640(I)/2026 specifies "persons earning income from remunerative social media content" as a sector for a special procedure under section 99C.
- S.R.O. 1641(I)/2026 inserts Chapter IIA (rules 13ZI to 13ZP) in the Income Tax Rules, 2002 for resident persons deriving income from interaction with users in Pakistan through social media platforms.
- S.R.O. 1642(I)/2026 inserts Chapter VA (rules 19J to 19R) for non-resident persons, to the extent their income is Pakistan-source under section 101(3B)(b).
How minimum income is calculated
Minimum income for the tax year is A − B, where:
- A is total remuneration from social media content — the higher of (a) revenue per mille × total views ÷ 1,000, or (b) the actual remuneration received, in cash or kind;
- B is total expenses, up to a maximum of 30% of total revenue.
"Revenue per mille" is defined as the revenue generated per 1,000 views on a video shared on YouTube, and is taken as Rs 195, subject to revision from time to time. If you believe your actual remuneration is lower than the views-based figure, you must show evidence to the satisfaction of the Commissioner.
A worked example
| Item | Amount (Rs) |
|---|---|
| Views in the tax year: 2,000,000 — so 195 × 2,000,000 ÷ 1,000 | 390,000 |
| Actual remuneration received (platform payouts and sponsorships) | 300,000 |
| A — the higher of the two | 390,000 |
| Expenses actually incurred | 150,000 |
| B — expenses, capped at 30% of 390,000 | 117,000 |
| Minimum income (A − B) | 273,000 |
The minimum income is then taxed under the ordinary provisions of the Ordinance, together with your other income. If the creator could prove that actual remuneration really was Rs 300,000, A would be Rs 300,000 and the expense cap Rs 90,000.
Advance tax and the return
- Advance tax: calculated under the same formula for each quarter and paid under section 147, alongside the usual advance tax dates.
- Return: the income is declared in a special part of the income tax return each year. If the amount declared is lower than the rules produce, the Commissioner may rectify the return and recover the difference.
- Everything the rules do not specifically deal with is governed by the rest of the Ordinance.
Non-resident creators
For non-residents, income is Pakistan-source where there is "systemic and continuous soliciting of business activities or engaging in interaction through digital means" with users in Pakistan. The rules set the threshold at more than 50,000 users during a tax year or 12,250 users during a quarter. Above it, the same formula applies.
Practical steps for creators
- Register for an NTN and file a return every year, even if tax is deducted elsewhere
- Download and keep platform analytics (views) and payout statements for each quarter
- Keep contracts and payment records for sponsorships, gifts in kind and brand deals
- Keep invoices for equipment, editing, software and team costs — but plan on deductions being capped at 30% of revenue
- Where your actual earnings per 1,000 views are lower than Rs 195, assemble the evidence before you file
- Pay quarterly advance tax on time to avoid default surcharge
The rules define revenue per mille by reference to YouTube views. How the formula is applied to platforms that report reach differently is not spelt out, so keep evidence of your actual earnings from every platform.
Official sources
Frequently asked questions
Is YouTube income taxable in Pakistan?
Yes. Since September 2026, FBR's special procedure sets a minimum income for social media content: the higher of actual earnings or Rs 195 per 1,000 YouTube views, less expenses capped at 30% of revenue.
Can I claim all my expenses as a content creator?
Under the special procedure, expenses are deductible up to a maximum of 30% of total revenue when calculating minimum income.
This guide is general information based on the law as we understand it on the date shown, not advice for your situation. Tax rules change often — please speak to us before acting on it. See our disclaimer.