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YouTube and TikTok tax in Pakistan under Section 154B
Tax year 2026-27 · Updated Oct 1, 2026 · TaxGuide
Finance Act, 2026 inserted Section 154B: withholding tax on revenues received from social media platforms. It applies from 1 July 2026. This is the rule behind YouTube tax in Pakistan and TikTok tax in Pakistan for the 2026-27 year.
The freelancer tax calculator has a separate choice for this income. Do not run YouTube receipts through the 0.25% IT option.
What the Act says
Every banking and non-banking financial institution deducts tax when it credits an amount that represents revenue from a social media platform. The First Schedule, Division IIIAB, sets that rate at 5%.
The section names the kind of person it has in mind: a digital content creator or social media influencer earning from content on platforms including YouTube, Facebook, Instagram, TikTok, or similar platforms. “Payment” includes an inward remittance through a bank or an online payment service.
For a resident, the tax deducted is minimum tax. For a non-resident without a permanent establishment in Pakistan, it is final tax. Section 169 was amended so that final-tax list includes this non-resident limb.
The text is in the Finance Act 2026 PDF.
Why this is not the freelancer 0.25% rate
Section 154A is still there for IT and IT-enabled exports of services. PSEB registration still matters for that row, through tax year 2029. The comparison is in freelancer tax in Pakistan.
Section 154B is a different charge on platform revenue. PSEB registration is not what the 5% section asks for. Treating an AdSense or TikTok payout as a software export is how people understate the deduction.
A non-filer estimate on this site shows 10%, which is the 5% schedule rate plus the 100% Tenth Schedule increase. The Act itself prints 5%. Confirm which figure the bank used.
Keep the streams apart
Someone who bills foreign clients on Upwork and also receives YouTube revenue has two receipts.
- Client IT services: Section 154A, at 0.25% or 1%.
- Platform monetisation: Section 154B, at 5% from 1 July 2026.
Put them on separate lines in the working papers. The calculator will not add them together, because they are not one rate.
Questions
Is YouTube income taxed at 0.25% in Pakistan?
Not under Section 154B. From 1 July 2026 the Finance Act sets 5% on revenue received from social media platforms. The 0.25% rate remains the PSEB IT-export rate under Section 154A.
Is the 5% the final tax for a YouTuber in Pakistan?
For a resident, Section 154B says the tax deducted is minimum tax. Final tax under that section is for a non-resident without a permanent establishment in Pakistan.
TaxGuide.pk provides informational estimates based on the selected tax year and published rules. Verify final tax obligations with official sources or a qualified tax professional.