FBR Doubles Tax on Earnings of Non-Filer Influencers

The Federal Board of Revenue (FBR) has imposed a 10 percent withholding tax on social media earnings of digital content creators and influencers who are not listed on the Active Taxpayers List (ATL), effective July 1, 2026.

The measure is part of the FBR’s updated Withholding Tax Card 2026, issued following amendments introduced through the Finance Act 2026.

Under Section 154B of the Income Tax Ordinance, digital content creators and social media influencers appearing on the ATL will face a 5 percent withholding tax on revenues received from social media platforms. The rate rises to 10 percent for those not appearing on the ATL.

The FBR said the updated Withholding Income Tax Rate Card incorporates the tax changes introduced through the Finance Act 2026 and is applicable through June 30, 2026.

Separately, Section 236Y covers amounts remitted abroad through credit, debit, or prepaid cards.

The withholding tax rate has been set at 0.5 percent for ATL taxpayers and 1 percent for non-ATL persons under Division XXVII of Part IV of the First Schedule, read with Rule 1 of the Tenth Schedule to the Income Tax Ordinance.

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