Yes—but not through a Google-only exemption. Pakistan’s SRO 1366(I)/2025 says the Digital Presence Proceeds Tax (DPPT) does not apply to covered digitally ordered goods and services supplied from outside Pakistan “by any person.” It states an effective date of July 1, 2025. That is distinct from Google Ads’ help page, which separately describes a 5% tax under Pakistan’s 2018 Finance Act; the page does not explain how that guidance interacts with the 2025 exemption.
What Pakistan’s 2025 digital tax covered
The Digital Presence Proceeds Tax Act, 2025 (Act No. XIX of 2025), dated June 27, 2025, established a 5% tax on specified goods and services supplied from outside Pakistan by qualifying foreign vendors. Its schedule includes social-media advertising among services subject to the 5% rate. Read the Digital Presence Proceeds Tax Act, 2025.
The Act’s charging rule applies to a foreign vendor with a “significant digital presence” in Pakistan. The definition requires more than PKR 1 million in qualifying supplies to Pakistani users during a financial year, plus at least one additional connecting factor. Examples include a local user base or data input, billing in local currency or through a local payment method, responsibility for delivery or after-sales support, or continued marketing in Pakistan.
The Act defines digitally delivered services to include services such as streaming, cloud services, online software, e-learning, telemedicine, online banking, and digital research, consultancy, and accounting. Its scope is therefore broader than advertising or Google services alone.
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What SRO 1366(I)/2025 says
The notification is dated July 30, 2025, and states that the DPPT “shall not apply” to digitally ordered goods and services supplied from outside Pakistan “by any person” that would otherwise be chargeable under the Act. It gives July 1, 2025, as the effective date. The wording is general: it does not name Google or limit the exemption to one company. See the reproduced SRO 1366(I)/2025 text.
The linked page reproduces the notification and links to an official Federal Board of Revenue PDF. The exact wording cited here is from that reproduction. The notification’s stated effective date is earlier than its date, so the dates should not be conflated: it was dated July 30, 2025, and says it took effect July 1, 2025.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Does this mean Google Ads customers owe no 5% tax?
That conclusion is not established by the notification and the available Google guidance. Google Ads’ Pakistan help page separately says that a 5% tax applies to certain offshore digital-services payments made on or after July 1, 2018, under the Finance Act, 2018. It says customers may need to deposit the tax under the Ads terms and conditions. Google also says local indirect taxes are not applied to the Ads activity described on the page because the business contract is registered with Google Asia Pacific Pte Ltd, Singapore. See Google Ads’ “Taxes in your country” guidance.
Google’s page does not discuss the 2025 DPPT Act or SRO 1366(I)/2025. It does not resolve whether the older guidance remains applicable after the exemption, whether it concerns a distinct tax, or how the customer’s billing arrangement and service category affect the result. The 2025 notification should not be treated as proof that every tax obligation connected with Google Ads or other Google services has ended.
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How to read the two 5% references
| Reference | What it addresses | What the source establishes |
|---|---|---|
| Digital Presence Proceeds Tax Act, 2025 | Specified cross-border digitally ordered goods and services supplied by foreign vendors meeting the significant-digital-presence test; the schedule sets 5% rates for goods and services, including social-media advertising. | The statute establishes the DPPT and authorizes exemptions by official-gazette notification. |
| SRO 1366(I)/2025 | Covered digitally ordered goods and services supplied from outside Pakistan “by any person” that would otherwise be chargeable under the 2025 Act. | The reproduced text says the DPPT shall not apply and states an effective date of July 1, 2025. |
| Google Ads Help: “Taxes in your country” | Certain offshore digital-services payments to Google Asia Pacific Pte Ltd or Google Ireland Ltd, described under the Finance Act, 2018. | Google’s page describes a 5% tax for payments on or after July 1, 2018, and says customers may need to deposit it. It does not address the 2025 Act or SRO. |
What a Google customer can do
- Check the tax line on the specific invoice or payment record and identify the service, contracting Google entity, and billing arrangement.
- Ask Google Ads support or a qualified Pakistan tax adviser whether the amount relates to the 2018 Finance Act guidance, the 2025 DPPT, or another tax obligation.
- For a filing or payment decision, rely on current official tax guidance and the rules applicable to the particular transaction, not on the phrase “Google exempted” alone.
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