Electronic traders operating in Egypt could register for income tax using their home addresses, according to Reda Abdel Qader, Chairperson of the Egyptian Tax Authority (ETA).
The taxpayer should submit a photocopy of his residence’s lease or ownership contract, in addition to a recent utility invoice billed on the registered address to open a tax file.
In a Monday statement, Abdel Qader said that the Ministry of Finance sought to achieve tax justice by including e-commerce in the tax community, as part of the government’s efforts to include the informal economic activities in the formal system.
He explained that all individuals and companies that engage in commercial or non-commercial activities, whether through electronic platforms or traditional channels, are subject to income tax in accordance with Law 91 of 2005.
The authority also demanded individuals and companies that use social media networks for e-commerce to register for income tax and VAT – in case their revenues reached EGP 500,000 per year – in accordance with the law.
There are three types of companies that engage in e-commerce activity: First, companies use e-commerce as one of the various means of sale or distribution. Second, companies depend mainly on electronic means in selling and distributing their products and services. Third, companies use digital platforms to promote products of other companies to customers.
Moreover, all companies that engage in commercial or non-commercial (free professions) activities are subject to income tax according to Law 91 of 2005.
Abdel Qader said that ETA allocated hotline 16395 to receive inquiries related to taxation of e-commerce and online content creation activities.