Karachi, December 4, 2024 – The Federal Board of Revenue (FBR) has updated advance tax rates for foreign TV dramas, plays, and advertisements in Pakistan for the tax year 2025. These changes aim to regulate content featuring foreign talent and promote compliance within the entertainment industry.
The revised tax rates fall under Section 236CA of the updated Income Tax Ordinance, 2001, which mandates the collection of advance tax on foreign content aired on landing rights channels in Pakistan.
Key Provisions of Section 236CA:
1. Tax on Foreign TV Plays and Dramas: Licensing authorities certifying any foreign TV drama serial or a play dubbed in Urdu or other languages for screening must collect advance tax at the specified rates.
2. Tax on Advertisements Featuring Foreign Actors: Licensing authorities certifying advertisements featuring foreign actors for airing on landing rights channels are required to collect advance tax at the specified rates.
3. Minimum Tax Requirement: The collected advance tax is treated as the minimum tax for income arising from the certified drama serials, plays, or advertisements.
Updated Tax Rates:
• Foreign-Produced TV Drama Serial or Play:
o Per Episode: PKR 1,000,000
• Single-Episode Foreign TV Play:
o Flat Rate: PKR 3,000,000
• Advertisement Featuring Foreign Actor:
o Per Second: PKR 100,000
Additional Surcharge for Non-ATL Entities
For individuals or entities not listed on the Active Taxpayers List (ATL), these rates will be doubled. This step aligns with the government’s broader strategy to encourage compliance and expand the tax net.
The FBR’s latest move reflects its efforts to ensure equitable taxation and support the local entertainment industry by regulating the influx of foreign content. These measures are expected to generate substantial revenue while leveling the playing field for local artists and production houses.
By imposing these taxes, the government aims to strike a balance between fostering creative diversity and prioritizing local talent and productions within the national entertainment landscape.