Government of Pakistan is Considering 15% Tax on Online Earnings

The Government of Pakistan is now considering around 15% of taxes on online earnings such as; Freelancing and YouTube Content writing.

Multiple sources have claimed that Government of Pakistan (GoP) is considering to put taxes on earnings that are made online.

Specifically, if the individual earnings exceeds $400 USD annually will be liable to pay income tax on the earnings, the tax will be set 15% on foreign incomes.

This decision was considered after the pressure from IMF to impose tax on foreign incomes. Previously the foreign income was tax exempted.

Furthermore, all the income deposited in bank account and have to be routed through the State Bank of Pakistan (SBP).

No transactions through service like Western Union will be allowed. This rule will be said to effect on the coming 1st January of 2021.

The details of the transaction being made will also be shared with the FBR department. This decision comes as a surprise to the most in the freelancing community although it is not unexpected as the FBR had been sending tax notices to content creator like YouTuber like Nadir Ali in the past.

The decision seems very unfair as $400 dollars annual limit is barely enough for the expenses that are incurred and the effect that goes into content creation.

In comparison, an annual income of less than PKR 600,000 is not taxable inside Pakistan according to the latest tax budget.

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