Banks across Pakistan have started deducting a 10% withholding tax at source from payments received by influencers, content creators, freelancers, and digital publishers through international platforms such as YouTube, Facebook, and Google AdSense.
According to sources, the tax is being deducted by scheduled banks when payments from overseas digital platforms are credited to users’ bank accounts. The international platforms themselves are not withholding the tax before transferring earnings.
Key Takeaways
- Tax Rate: 10% withholding tax
- Who is affected? Influencers, YouTubers, freelancers, digital publishers, and content creators
- Platforms: YouTube, Google AdSense, Facebook, and other international digital platforms
- Who deducts the tax? Scheduled banks in Pakistan
- When is it deducted? When foreign earnings are credited to bank accounts
- Platforms are not deducting the tax directly
How the Tax Is Being Applied
The withholding tax is deducted by Pakistani banks at the time international digital earnings are deposited into recipients’ accounts.
This means creators receive their payments from platforms such as YouTube, Facebook, or Google AdSense in full, but the bank deducts the applicable 10% withholding tax before making the funds available.
The deduction applies to income earned from international digital platforms rather than being collected by the platforms themselves.
Impact on Digital Creators
The move affects a growing community of:
- YouTubers
- Facebook content creators
- Bloggers
- Digital publishers
- Influencers
- Freelancers earning through advertising platforms
For many creators, earnings from Google AdSense and other international platforms represent a major source of income and contribute to Pakistan’s expanding digital economy.
Importance for Pakistan’s IT Exports
Income earned from international digital platforms forms an important component of Pakistan’s IT and IT-enabled Services (ITeS) exports.
The country’s digital creator economy has grown rapidly in recent years, generating foreign exchange through advertising revenue, online publishing, digital marketing, and content creation.
The introduction of withholding tax highlights the government’s increasing focus on taxation within the digital economy while maintaining oversight of cross-border income flows.
Why This Matters
- A 10% withholding tax is now being deducted by banks from eligible digital earnings.
- The measure affects thousands of Pakistani YouTubers, influencers, freelancers, and online publishers.
- The tax is collected by Pakistani banks—not by YouTube, Facebook, or Google AdSense.
- Digital platform income is an important contributor to Pakistan’s IT and ITeS export earnings.
- The development reflects the government’s expanding focus on taxing the digital economy.
Frequently Asked Questions
Who is affected by the new withholding tax?
The tax applies to influencers, YouTubers, digital publishers, freelancers, and content creators receiving payments from international digital platforms.
How much tax is being deducted?
Banks are deducting a 10% withholding tax from eligible payments when they are credited to customers’ accounts.
Are YouTube or Google AdSense deducting the tax?
No. According to available information, the tax is deducted by scheduled banks in Pakistan, not by YouTube, Google AdSense, Facebook, or other international platforms.
When is the tax deducted?
The deduction takes place when earnings from international digital platforms are deposited into a recipient’s bank account in Pakistan.
Why is this important?
The measure affects Pakistan’s growing creator economy and digital services sector, whose foreign earnings contribute to the country’s IT and IT-enabled services exports.
