All Adsense Payments Can be Taxed: FBR

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Federal Board of Revenue, authority responsible for taxing businesses and individuals in Pakistan, has announced that it is devising a strategy to tax Google’s income from Pakistan.

A status update posted on FBR’s official website said that all Adsense payments can be taxed, without clarifying anything about bringing advertisers under the tax head.


ProPakistani had reported in the morning that FBR is considering to tax Google, after it heard that its Indian counterparts had fined the Google with 760 million Indian rupees or USD 13.8 million for evading taxes and misleading Indian authorities by under-reporting its revenues.

FBR admitted that hurdle in taxing Google is its Permanent Establishment (as per Income Tax Ordinance, 2001), which could give FBR an ability to bring Google under Pakistani tax laws.

However, it appears that adsense publishers won’t be spared, a relatively easier target for FBR to collect money, which will be insignificant in value.

Adsense publishers are of the opinion that authorities are being biased here by taxing publishers only, while advertisers and Google itself is apparently spared by FBR.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • I think, FBR just heard about ‘how to make money with adsense’ Its good step but who wants to pay to Zardari?

  • the only way i think is to deduct money from adsense publishers acconts before payout because in pakistan law no body is taxable for payments coming from abroad

  • Its Not possible in pakistan. If they do deduct from westren union then what about cheque. No one can deduct tax from a cheque.I think Indian publishers also not paying any tax. There are also income tax slots. If a publisher is earning 35k per month then there is no tax applicable to that publisher.

  • I do not have to pay tax on my online earning as long as they provide all the services which we deserve. like, web insurance, fraud deduction, copyright, paypal, etc

  • I do not have any problem to pay tax on my online earning as long as they provide all the services which we deserve. like, web insurance, fraud deduction, copyright, paypal, etc

  • I would like to make some points clear for the community:

    1. Adsense earnings are the money you have earned so it is income not remittance.
    2. The costs occur to you while earning this money will be returned to publishers if they file for returns. It can be done online, you will have to save all transaction details like the transactions you made to pay for servers, hosting, salaries you paid to your employees, etc.
    3. Publishers in many countries are paying taxes in their own countries FBR can easily find out how to do that and Google would gladly cooperate with them.
    4. Adwords advertisers can also be easily taxed.
    5. FBR can not Tax Google because Google is paying taxes for its earnings in the United States.
    6. Just the same way United States government can not tax Pakistani Publishers.
    7. FBR already provides excellent services to taxpayers they have helplines, support desks, and online documentation available. You can file applications online and you don’t even need to visit any government office.

    It is not a bad thing, I think it is a very good thing. I do agree with @google-af39788bfde7ba5dc0eff7de3af89ee7:disqus that FBR should help us with things like online fraud, web security and help us earn money for Pakistan by facilitating paypal and other online payment solution providers. That way the more money Pakistanis make, the more tax they pay.

  • It is not a fake page, it is run by FBR officials. I work in Inland Revenue, FBR and this is true, the said proposal was floated by Madam Yasmeen Saud when she was Chief Commissioner, RTO Karachi.

  • Publishers income can’t be taxed because it’s technically NOT the Pakistani source income and constitutes a form of remittance. Only way for FBR is: to somehow get Google as a registered company in Pakistan and then track Pakistani publishers serving ads of Pakistani advertisers only. For now, only Google seems to gonna have to pay tax which they should pay on the income generated from Pakistan. Which too seems a far distant dream. So chill everyone.

  • FBR can not tax publishers as the money come as in category of remittance. I think remittance is already being taxed in the country. If they will tax publishers who are earning in big figures. Simple solution for them is to go to a country where they don’t tax and collect your money over there and send it back to Pakistan. Tax free :p

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