FBR sets out faceless income-tax audits (SRO 1665) and a special tax procedure for social-media earnings (SRO 1641)

FBR sets out faceless income-tax audits (SRO 1665) and a special tax procedure for social-media earnings (SRO 1641)

30 September 2026 —

Not yet independently verified. This rests on the FBR’s own press release and notifications; no independent report was checked. The social-media procedure’s start date was not found in the notifications. We will update this when it can be confirmed, and remove this note. We will update this when it can be confirmed, and remove this note.

Pakistan's Federal Board of Revenue published two sets of income-tax rules in the last week of September 2026. One changes how a business deals with the tax office when it is audited. The other sets a minimum taxable income for anyone paid for social-media content.

Faceless audits: the National Faceless Centre and SRO 1665

On 25 September the FBR's Board in Council set up the National Faceless Centre (NFC) in Islamabad. The FBR says that until now an audited taxpayer dealt with one officer in one office, often in person, and that this contact now ends:

• cases are picked by a computerised, risk-based system, not by an officer;
• each case goes by algorithm to an officer who may sit anywhere in the country, and the taxpayer is not told who it is;
• three separate hands handle every case: one audits, a second assesses, a third reviews quality before any order is made;
• all notices, replies and hearings run through IRIS, and a separate field team does any physical verification or recovery.

On 29 September SRO 1665(I)/2026 made this law by adding a new Chapter XX, "Faceless Audit and Assessment", to the Income Tax Rules 2002. It covers audits under sections 177 and 214C, proceedings under section 111, and assessments under sections 120, 121 and 122, with the notices and penalties that go with them. Every notice from the Centre must carry a Digital Identification Number (DIN). Every reply must go through the taxpayer's IRIS account, in the format the FBR sets.

The chapter starts on a date the FBR will notify in the Gazette. It may pick different dates for different classes of cases, so no start date has been set yet.

What businesses should do now: make sure the IRIS account's email, mobile number and authorised representatives are current, because notices will arrive only there. Treat a notice without a DIN with suspicion. Keep audit-ready records in electronic form, since hearings will be held online.

Social-media earnings: a minimum income formula (SRO 1641 and 1642)

On 23 September the FBR made final a special procedure under section 99C for people who earn from social-media content. It was first published as a draft on 1 April. SRO 1641 covers residents who earn through interaction with users in Pakistan; SRO 1642 covers non-residents.

For residents, the minimum taxable income is remuneration minus expenses, and expenses are capped at 30% of revenue. Remuneration is the higher of:

• the "revenue per mille" multiplied by views divided by 1,000, with the rate set at PKR 195 per 1,000 YouTube views and open to revision; or
• the actual payment received, in cash or in kind.

A creator who earned less can show evidence to the Commissioner. Advance tax is paid quarterly under section 147, and the income goes in a special part of the annual return. Any shortfall can be recovered.

Who should act: agencies and brands that pay Pakistani creators, and creators themselves. Keep view counts, payout statements and expense records for each quarter.

Sources

• Federal Board of Revenue: FBR sets up National Faceless Centre — no more direct contact with tax officers — 25 September 2026
• Federal Board of Revenue: S.R.O. 1665(I)/2026 — Chapter XX, Faceless Audit and Assessment, Income Tax Rules 2002 — 29 September 2026
• Federal Board of Revenue: S.R.O. 1641(I)/2026 — special procedure for income from remunerative social media content (residents) — 23 September 2026
• Federal Board of Revenue: S.R.O. 1642(I)/2026 — the same procedure for non-residents — 23 September 2026