The Federal Board of Revenue (FBR) has introduced a mechanism to bring earnings from YouTube, Facebook, TikTok, Instagram, and other social media platforms into the formal tax system.

Under the new framework, individuals earning income through social media content will be subject to income tax, with specific rules being developed for calculating and collecting tax on such earnings.

The FBR said people generating income from social media content are already covered by the tax system and will be required to pay income tax on their earnings.

The new mechanism will establish a dedicated procedure for dealing with payments received through social media platforms. This will cover income generated from digital content and payments made to creators and influencers.

The tax authority has also notified the mechanism for incorporating social media income into the broader tax framework.

The development means earnings generated through major platforms such as YouTube, Facebook, TikTok, and Instagram will be treated as taxable income under the applicable rules.

The FBR’s move is aimed at establishing a formal tax collection mechanism for the growing number of individuals earning money through digital content and social media platforms.