Facebook & Google Ads Tax Calculator 2026-27

Meta's page on taxes for ads lists tax by the ad account's 'Sold To' country and has no entry for Pakistan; it says information is not available for a country it does not show. Your receipts show whether Meta added any tax. Google's own help page says a Google Ads account in Pakistan is contracted with Google Asia Pacific Pte. Ltd., Singapore, so no Pakistani indirect tax is shown on its invoice; the same page still cites a 5% withholding from the Finance Act 2018, which the Ordinance no longer states (section 152(1C) is now at Division IV of Part I). What Pakistani law adds is collected by your bank: section 236Y on a card payment abroad, and in Sindh and Punjab sales tax on advertisement services. Section 236Y turns on a card transaction with a person outside Pakistan, not on the currency. Meta's Self-Service Ads Terms (section 15(b)) make Meta Platforms Ireland Limited the contracting party for an advertiser outside the US and Canada, and Google's help page names Google Asia Pacific Pte. Ltd., Singapore, for Pakistan, so an ads charge billed in rupees by either is still such a transaction. A charge from a business in Pakistan, such as an agency that buys the ads for you, is not.

Provincial sales tax on ads

In Sindh, a bank or other entity the State Bank authorises to transfer money abroad collects Sindh sales tax on the gross amount remitted when a recipient based in Sindh pays a provider not resident in Pakistan: 15% on advertisement services. A company on the sales tax Active Taxpayers' List (SRB's or FBR's) is excluded (Sindh Sales Tax Special Procedure (Tax on Specified Services) Rules 2023, rules 1(2) and 3, as amended by SRB Notification SRB-3-4/45/2025). In Punjab, banks and other financial institutions are collecting agents for Punjab sales tax on services bought through websites from a person with no place of business in Pakistan by persons in Punjab receiving them in the course of an economic activity: 16% on advertisement services, including on websites or the internet (PRA Notification PRA.32-24/2022/561, as amended). Whether a purchase outside a business is in the course of an economic activity is not settled. Khyber Pakhtunkhwa, Balochistan and Islamabad tax services from non-residents in the hands of the recipient, but no rule was found making a bank collect that tax at the card. Whether your bank applies the provincial tax to a particular purchase, and under which heading, is its decision on the rules above; your card statement shows it. Choose it here only if your bank takes it.

Do you have to deduct tax yourself?

Every person paying for advertisement services to a non-resident media person relaying from outside Pakistan must deduct 10% of the gross amount (s.152(1AAA); First Schedule Part III Division II(3)), a minimum tax on the non-resident's income (s.152(1B), as substituted by the Finance Act 2021). The duty is on the payer, whether an individual or a business. Whether Meta or Google is such a media person is not settled. This page adds no such deduction. A business cannot deduct an expense from which it was required to deduct tax until that tax is paid (s.21(c)), so a business advertiser should settle the section 152(1AAA) question before claiming the spend.

Where this stops

The Digital Presence Proceeds Tax Act 2025 charged tax on payments to foreign vendors for digitally ordered goods and services. S.R.O. 1366(I)/2025 of 30 July 2025 directs that the tax shall not apply to digitally ordered goods and services supplied from outside Pakistan, from 1 July 2025; the Act itself was not repealed. No digital presence tax is added. Section 152(1C): a bank remitting a fee for offshore digital services to a non-resident, on behalf of a resident, deducts tax from the gross amount at Division IV of Part I of the First Schedule (15% for such a fee; FBR's rates card prints 10%, and the card itself says the statute prevails). The definition in section 2(22B) names online advertising including digital advertising space, hosting websites, "digital or cyber space for websites", e-mails, online computing and the distribution of digital content, so on its text a payment for these is such a fee; Google's help page for Pakistan calls Google Ads one and says a customer may need to deposit the tax. Nothing in the Ordinance makes this and section 236Y alternatives. No source was found showing that banks deduct section 152(1C) on card payments, so this page adds none; if your bank does, your card statement shows it. The foreign card payment tax calculator works out the section 236Y tax on a rupee amount alone.