Friday, June 13, 2025
-Advertisement-

Govt Introduces Digital Tax Regime Targeting Online Income and Platforms

- Advertisement -

Pakistan has enacted a new digital tax framework targeting income from online platforms including YouTube, social media, and streaming services, as part of efforts to tighten regulation over the country’s expanding digital economy.

The updated legislation extends to a broad range of sectors, bringing income from music, video, and audio streaming services under the tax net. It also covers telemedicine, online education platforms, cloud computing, and digital banking services.

- Advertisement -

E-commerce operators, including online marketplaces and digital retailers, will now be subject to the new regulations. Financial institutions such as banks and foreign exchange companies are required to deduct a 5 percent tax on payments made to international firms for digital goods or services, and remit it to the national treasury by the 7th of each month.

Non-compliance will trigger legal proceedings against the institutions involved. Additionally, all social media platforms operating in Pakistan are now required to submit quarterly activity reports to government authorities.

Entities involved in processing foreign transactions must also file quarterly reports containing buyer details such as name, national ID number, date of transaction, and the amount involved. Failure to submit these reports will result in a penalty of Rs 1 million.

Moreover, any foreign company that fails to meet its tax obligations for three consecutive months will have bank transfers to its account suspended.

- Advertisement -

Stay updated with the latest and breaking news directly on your mobile phone by joining Headline PK's WhatsApp group!

 

 

Latest stories

-Advertisement-

Highlights of the Week
Related

Sindh’s Healthcare Sector to Undergo International Standard-Based Grading

A plan to introduce an international standard-based grading system...

Pakistan to Witness Nearly 7 Million Animal Sacrifices on Eid-ul-Adha

Pakistan is expected to witness the sacrifice of more...

Gaming in 2025 Just Got Smarter – TCL’s C6K is the Ultimate Console Companion

If you’re a console gamer in Pakistan, your setup...

Tech-Savvy Car Thieves Outsmart Security Systems in Karachi

In a brazen display of criminal sophistication, a gang...
-Advertisement-
Join our Whatsapp Group for Exclusive News!
Join our Whatsapp Group for Exclusive News!