Pakistan has introduced a new tax for social media content creators, including non-residents who earn revenue by attracting users in the country.

According to Pakistan’s Federal Board of Revenue (FBR), the regulations apply to creators whose content reaches more than 50,000 users in a fiscal year.

The tax is calculated on income generated from “revenue-generating social media content”, with up to 30 per cent of gross income allowed as a deductible expense.

For YouTube income, a calculation rate of $0.70, equivalent to about 195 Pakistani rupees, has been set for every 1,000 views, although the rate may be revised in the future.

Those covered by the regulations must also pay income tax and report their earnings in the relevant section of their annual tax return.

If the declared income is lower than the amount calculated under the regulations, the tax authority may amend the return and demand payment of the outstanding tax.

Under the regulations, any content that generates income or financial rewards for its creator is considered “revenue-generating social media content”.