FBR proposes tax on non-resident YouTubers at Rs195 per 1,000 views

The Federal Board of Revenue has proposed a new tax framework for non-resident YouTubers earning income from viewers in Pakistan, seeking to impose a charge of Rs195 per 1,000 views on monetised content.

The proposal has been issued through amendments to the Income Tax Rules under powers exercised by the finance minister, with the FBR inviting objections within seven days before finalisation. The rules aim to bring into the tax net individuals generating Pakistan-source income through digital platforms without physical presence in the country.

Under the proposed mechanism, the fixed rate per 1,000 views could translate into an effective tax burden ranging from 16% to 66%, depending on earnings per mille. Current industry estimates suggest revenue per 1,000 views typically ranges between $1 and $3, but can be higher for audiences in developed markets.

The rules define applicability thresholds for non-resident individuals engaging with Pakistani users on a continuous basis, including those exceeding 50,000 users annually or 12,250 users per quarter. These individuals would be required to pay advance income tax and declare earnings through a dedicated section of the tax return.

The FBR has proposed a minimum income calculation formula based on the higher of two values: estimated earnings derived from average views, number of posts and revenue per mille, or actual income received in cash or kind. Allowable expenses would be capped at 30% of total revenue.

The framework specifically targets non-resident Pakistanis producing monetised content related to Pakistan’s economy, politics and other sectors, particularly those based in jurisdictions such as the United States, Canada and the United Kingdom.

Tax authorities have also outlined enforcement provisions, stating that if declared income is lower than the computed amount, the relevant commissioner may revise the return and initiate recovery proceedings under the Income Tax Ordinance, 2001.

Officials noted that implementation of the proposal would require coordination with platform operators such as YouTube to ensure effective collection and compliance.