Pakistan’s Federal Board of Revenue (FBR) has demanded over Rs.200 million ($700,000) in income tax from streaming giant Netflix. The notice, sent to Netflix’s Singapore office, covers unpaid taxes generated in Pakistan over the past two years.
FBR officials claim Netflix earned over Rs.1 billion in Pakistan during 2021 alone, citing its significant subscriber base. The tax demand is based on Section 6 of Pakistan’s Income Tax Ordinance, which allows the taxation of non-resident companies providing digital services to Pakistani consumers.
This move comes amid a wider effort by the Pakistani government to collect taxes from foreign companies operating in the country without a physical presence. Netflix offers various subscription plans in Pakistan, ranging from Rs.250 to Rs.1,100 per month.
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The FBR aims to ensure that companies like Netflix contribute their fair share of taxes based on their earnings in Pakistan. While Netflix has a Singapore office, it has also established a presence in the Netherlands in recent years.
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