Egypt applies taxes on bloggers, youtubers with LE 500K revenues

CAIRO – 26 September 2021: Individuals who engage in content creation activity (bloggers - YouTubers) must go to the Tax Authority office to open a tax file to register the relevant income tax, as well as register the competent value-added when their revenues reach LE 500,000 within twelve months from the date of practicing activity, according to head of the Egyptian Tax Authority, Reda Abdel Kader.

Abdel Kader clarified that the Ministry of Finance is closely following the Tax Authority to list transactions that take place through electronic platforms, and determining who does them, to include informal economy of the official system, and to reclaim the rights of the state’s public treasury.

He referred to the role played by the e-commerce unit at the authority in listing, following up and registering companies that engage in trade activity through websites.

Abdel Kader noted that e-commerce is an updated form of marketing and sales imposed by changes in communication technology and new communication, explaining that dependence on it has expanded in an unprecedented way globally due to the Covid-19 pandemic, as the company’s sales officials receive sales orders and undertake the marketing and sale of goods and services through a variety of means, such as telephone, fax, television or via the internet.

Head of the Tax Authority pointed out that many countries describe any commercial transaction as electronic commerce when the ownership of goods is transferred (sale) or service is performed over the internet or by other electronic means.

Abdel Kader explained that there are three types of companies that engage in e-commerce activity, the first type of which is companies where e-commerce is just one of its various means of sale or distribution, and the second type is companies that have been established and depend mainly on selling and distributing their products and services through electronic means, while the third type is represented by companies whose activity is digital platforms to display the products of sellers, and facilitate comparison processes for buyers.

Regarding the tax situation of companies that engage in e- commerce activity, He clarified that with regard to income tax, all companies that engage in commercial or non-commercial activities (activities of liberal professions) are subject to income tax in accordance with Law 91 of 2005, and they must register and declare their revenues as of the date of the start of the activity.

With regard to value added tax, Abdel Kader said that according to Value Added Tax Law No. 67 of 2016, companies that engage in the activity of selling public goods or performing services in the general category when their turnover reaches LE 500,000 annually, must register with the tax on the value added tax.

“Also, individuals and companies that provide professional and consulting services must register as of the date of the start of the activity, and collect and supply the value-added tax at the rate of 10 percent,” he added, explaining that companies that engage in an activity to sell goods or perform services from the goods and services list must register as of the start date of the activity, to collect and remit the tax in the category corresponding to the sold commodity, or the service performed as stipulated by law.                                    

Abdel Kader said that in the event of any inquiries related to e-commerce, the integrated call center should be contacted at 16395 or heading to the headquarters of the e-commerce unit at the Egyptian Tax Authority.