Banks have started deducting a 10 percent withholding tax from earnings received by influencers, content creators, and digital publishers through social media and online platforms.

Sources told ProPakistani that scheduled banks have begun collecting tax on digital earnings generated through major platforms, with creators receiving payments through monetized channels such as YouTube ads and other digital revenue streams now seeing deductions applied at the time of transfer.

Sources further said that Google, through its AdSense payment system, has also started applying the required tax deductions on eligible earnings received by Pakistani content creators and influencers.

Under the Finance Bill 2026-27, income earned by digital content creators and social media influencers through platforms including YouTube, Facebook, and Instagram has been brought under the withholding tax regime, with deductions made through banking channels when payments are received.

The tax deductions are being applied when payments from digital advertising services and other monetization platforms are processed through local banks, bringing online income streams into Pakistan’s formal tax framework.

The mechanism covers payments credited through banks and other financial institutions. Sources said the applicable withholding tax rate is 10 percent for resident taxpayers and non-residents, while non-filers may face higher deductions under the broader tax framework.

The government introduced the measure as part of efforts to expand the tax base, document digital income, and bring earnings generated through Pakistan’s rapidly growing online economy into the formal taxation system.