The Federal Board of Revenue (FBR) has imposed double the rate of withholding tax on the income of social media platforms for digital content creators and influencers who are not on the Active Taxpayers List (ATL).
The new Withholding Tax Card 2026 indicates that as of July 1, 2026, non-ATL content creators and social media influencers would be required to pay 10% withholding tax on revenue obtained from social media platforms.
The new rate has been imposed under section 154B of the Income Tax Ordinance after revisions made under Finance Act 2026.
Digital producers and influencers appearing on the ATL, however, will suffer a 5% withholding tax on their social media income. Non-ATL taxpayers will be paying twice the rate of active taxpayers.
The Finance Act 2026 brought various changes into effect, and the new tax card reflects these changes and specifies the withholding tax rates applicable to different types of taxpayers.
Tax on transfers abroad through cards
The FBR has also fixed the rates of withholding tax on the monies transmitted overseas through the credit, debit, and prepaid cards under section 236Y.
For those transactions, ATL taxpayers will see a withholding tax of 0.5%, but the rate for non-ATL individuals is set at 1%.
The recent amendments are raising the tax burden on digital artists who earn income through social media platforms but are not enrolled as active taxpayers. The greater payment also gives another incentive for influencers and content makers to stick to the ATL.
