The DPPT was scrapped just one month after its introduction on 30 July 2025.
Pakistan’s government has scrapped the digital presence proceeds tax (DPPT) on foreign entities supplying digital goods and services to Pakistan’s consumers, only a month after its implementation through SRO 1366/I/2025, issued on 30 July 2025.
SRO 1366/I/2025 repeals the Digital Presence Proceeds Act 2025, effective from 1 July 2025. The Act imposes a 5% withholding tax as full and final liability on foreign entities with significant digital presence in Pakistan for digitally supplied goods and services to users in the country.
The repeal applies to the US and all foreign entities providing digital goods and services in Pakistan.
Earlier, the Federal Board of Revenue (FBR) of Pakistan announced it would exempt Google from the DPPT.
