The Federal Board of Revenue (FBR) has set a 10 percent withholding tax on income earned through social media platforms by digital content creators and influencers who are not on the Active Taxpayers List (ATL).

The tax will apply from July 1, 2026, under the updated Withholding Tax Card issued by the FBR following changes introduced through the Finance Act 2026.

Under Section 154B of the Income Tax Ordinance, ATL-listed content creators and social media influencers will pay 5 percent withholding tax on revenue received from social media platforms. The rate is 10 percent for those not appearing on the ATL.

The FBR’s revised Withholding Income Tax Rate Card incorporates the amendments made through the Finance Act 2026.

Meanwhile, Section 236Y covers foreign remittances made through credit, debit, and prepaid cards. The withholding tax rate has been set at 0.5 percent for ATL taxpayers and 1 percent for non-ATL individuals.

The rates have been prescribed under Division XXVII of Part IV of the First Schedule, read with Rule 1 of the Tenth Schedule of the Income Tax Ordinance.