Islamabad-(Mudassar Iqbal/Web Desk)-The Federal Board of Revenue (FBR) has proposed a new taxation mechanism aimed at bringing social media content creators earning from monetised content into the tax net.
Through two separate notifications, the authority has invited stakeholders to submit objections and suggestions within seven days before finalising amendments to the Income Tax Rules, 2002.
According to the proposal, non-resident individuals earning income through interaction with users in Pakistan via social media platforms will also be subject to taxation, provided their earnings qualify as Pakistan-sourced income under the relevant provisions of the Income Tax Ordinance, 2001, and meet the prescribed threshold.
Hakeem Shahzad’s Alleged Fifth Marriage Sparks Social Media Debate
Under the new mechanism, individuals who deliver content to at least 50,000 users annually will fall under the tax net.
Exceeding 50,000 users during a tax year or 12,250 users during a quarter will fall under the prescribed threshold category.
Every person under this special procedure shall pay advance income tax calculated by applying the procedure given in rule -l9M and rule-19N 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,” read the notification.
The FBR, however, allowed influencers to claim up to 30% of their social media income as expense
Comments are closed, but trackbacks and pingbacks are open.