A strategy to tax Google’s income from Pakistan has been devising, as announced by the Federal Board of Revenue, it is the authority which is responsible for taxing business and individuals in Pakistan.

FBR Adsense Payments TAX in Pakistan

Without clarifying anything about brining advertisers under the tax head, all Adsense payments can be taxed, as according to the status update posted in the official website of FBR.

For evading taxes and misleading Indian authorities by under reporting its revenues, its Indian counterparts had fined the Google with 760 million Indian rupees or USD 13.8 million, after FBR heard this; they are now considering taxing Google.

It’s Permanent Establishment (as per Income Tax Ordinance, 2001), is the hurdle in taxing Google, as admitted by FBR, to bring Google under the Pakistani tax laws could be given to FBR.

FBR

Adsense publishers, as it appears, won’t be spared, in order to collect money, which will be insignificant in value, it is a relatively easier target for FBR.

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