The Federal Board of Revenue (FBR) has introduced a special tax mechanism for individuals earning income through social media.
For taxation purposes, a maximum deduction of 30% of expenses from social media income will be allowed, meaning that taxable income will be calculated by deducting allowable expenses from gross income.
According to details, if actual income is below the prescribed threshold, proof of lower income will have to be provided to the commissioner.
The FBR has added a new chapter to the Income Tax Rules in this regard. The new rules will apply to resident individuals earning income through social media in Pakistan.
Gross income earned through social media will be calculated on the basis of views and actual income. Social media income will also be calculated through earnings per thousand views. Income actually received in cash or any other form will also be included in the calculation.
Advance Tax
Advance tax will have to be paid every quarter.
Declaration in Return:
Social media income will have to be declared in a separate section of the income tax return. If lower income is reported, the commissioner may correct it. The law will apply to social media platforms, social media content and remunerative content.
Also Read: FBR announces new procedure for auction of seized goods
