According to official documents, draft amendments to the Income Tax Rules 2002 have been prepared to cover Pakistani citizens generating income through platforms such as YouTube, TikTok and Instagram.

The proposed rules will apply to income earned from advertisements, sponsorships and other monetisation avenues linked to social media activity, particularly interactions with Pakistani users.

Taxable income will be determined based on earnings and expenses, with authorities also considering average views and the volume of annual content posted.

A specific formula has been devised for calculating tax liability, while individuals will be required to declare such income separately in their annual tax returns.

The FBR has invited objections and recommendations on the draft within one week, after which the amendments will be finalised.