Pakistan’s Federal Board of Revenue (FBR) has issued Statutory Regulatory Order (SRO 1366(I)/2025) of 30 July 2025, directing that the Digital Presence Proceeds Act 2025 will no longer apply as from 1 July 2025. The repeal eliminates the 5% withholding tax that had applied only since 1 July on payments to foreign entities with a “substantial digital presence” for digitally ordered goods and services supplied from abroad to users in Pakistan.
The Digital Presence Proceeds Tax had been enacted…