Banks in Pakistan have started deducting withholding tax from the earnings of YouTubers, Facebook creators, influencers, freelancers, and other digital content creators when they receive payments from foreign platforms.
According to sources, banks are now collecting this tax when money from platforms like YouTube, Google AdSense, Facebook, Instagram, and other international digital platforms is transferred into the bank accounts of Pakistani users.
Under the new tax system introduced through the Finance Bill 2026-27, people who are registered as tax filers will have 5 percent withholding tax deducted from their earnings. Those who are not registered as tax filers will face a much higher deduction of up to 10 percent.
The tax is not being deducted by Google, YouTube, Facebook, or any other digital platform. Instead, Pakistani banks are responsible for collecting the tax when the payment reaches the creator’s local bank account.
The new tax applies to income earned from online activities such as YouTube videos, Facebook content, Instagram monetization, digital advertising, sponsored content, and other online services that generate revenue from international platforms.
These earnings are considered part of Pakistan’s IT and digital services exports because the money comes from foreign companies in exchange for digital content and online services provided by Pakistani creators.
The Federal Board of Revenue (FBR) has included these payments in the withholding tax system to improve tax collection from the rapidly growing digital economy. Banks have been instructed to deduct the required tax before the funds are credited to the account holder.
The new rules are expected to affect thousands of Pakistani YouTubers, influencers, freelancers, digital publishers, bloggers, and online entrepreneurs who regularly receive payments from international digital platforms.
People who are registered as tax filers will lose a smaller portion of their earnings through tax deductions, while non-filers will pay a significantly higher amount. This change encourages digital creators to become tax filers and remain compliant with Pakistan’s tax laws.
