Tax Vibz Pak

17/05/2026

*Annex - L*

17/05/2026

*Update for OMCs*

*Annexure L is to be introduced whereby sales invoices pertaining to Petroleum Development Levy [PDL] and Climate Support Levy [CSL] will be recorded in the monthly sales tax returns*

*Currently, it is just added as a payable figure as a separate line item without any separate annexure*

*SRO 🔗*
https://www.fbr.gov.pk/Downloads/?id=17666&Type=SROs

16/04/2026

*📢 FBR Proposes New Tax Regime for Social Media Income*
The Federal Board of Revenue has introduced draft rules to tax income earned by resident individuals from social media platforms like YouTube and other monetized channels.

Key Features of the Proposal:

>> Applies to earnings from:
- YouTube
- Monetized social media platforms
- Digital content creation

>> Standard Deduction Allowed
- Expenses allowed: Up to 30% of total revenue
- Remaining income treated as taxable

>>Minimum Income Benchmark (RPM Model)
Income will be calculated as the higher of:
- Actual income received, OR
- Estimated income based on Average views and Number of posts

In simple terms: Under-reporting won’t work anymore:

- Quarterly Advance Tax (Section 147) will be mandatory.
- Separate Disclosure Required
- Social media income must be declared separately in tax returns

FBR’s Power to Recalculate Income:

If declared income is lower than formula-based income, the FBR may revise and recover additional tax

⚖️ Why This Matters

This signals:
- A shift toward algorithm-based taxation
- Increased scrutiny on digital earners
- Reduced flexibility in income declaration

But raises questions:
- Is a fixed RPM realistic across niches?
- What about fluctuating ad rates and geography-based earnings?

💼 If you earn through social media:
- Maintain proper income records
- Track views & engagement data
- Plan for quarterly tax payments

*Don’t rely on “rough estimates” anymore*

16/04/2026

*Invoice correction option available in Digital invoice.*

16/04/2026

📢 Update: FBR E-Invoicing System (72-Hour Edit Option Activated)

15/04/2026

15/04/2026

The ITR No. 339/2025 (Islamabad High Court) has brought much-needed clarity to the taxation of property transactions in Pakistan.

Key takeaway:

- Profit from sale of immovable property is to be taxed under Capital Gains (Section 37) — not automatically as Business Income (Section 18).

The Islamabad High Court held that:

✔ Immovable property qualifies as a capital asset
✔ Frequency of transactions does not convert it into stock-in-trade
✔ Specific provisions of Section 37 override general business income rules
✔ Past reliance on Farrukh Shahzad case (2018 SCMR 1375) is no longer absolute

Why this matters:

→ Prevents unjustified taxation at higher business rates
→ Ensures predictable and fair treatment for taxpayers
→ Strengthens legal position in notices and assessments

A significant development for investors, & real estate dealers.

15/10/2025