Reda Abdel Kader, the assistant minister of finance for tax authority affairs, said that the Ministry and the Tax Authority are both keen on overcoming any obstacles that may face the practitioners of e-commerce activities and online content creators, in terms of legalising and registering their activities with the authority.
In a statement, Abdel Kader shed light on the importance of e-commerce. It has provided opportunities for many people to work from home and complete many commercial transactions in a short time, at any hour of the day and anywhere.
For his part, Mokhtar Tawfik, head of the Egyptian Tax Authority, said that the income tax law does not differentiate between traditional trade and e-commerce in the way it handles taxes and that both activities are equal before the law. Whoever is involved in these activities is a financier who has rights and obligations.
Tawfik added that any income generated from any profession or activity, whether these profits or revenues are made in Egypt or abroad – if Egypt is a center for the profession or activity – is a taxable profit and income.
He called on e-commerce activity practitioners to quickly register for tax, in accordance with the Income Tax Law No. (91) of 2005, the Value Added Tax Law No. 67 of 2016, and the Unified Tax Procedures Law No. (206) of 2020, so they are not legally penalized.
He said that the taxes related to both the e-commerce activity and the online content industry activity are income and value added tax.
He pointed out that the income tax is a direct tax imposed on the net income of natural persons (individual establishment) or profits of legal persons (companies) achieved from practicing non-commercial professions or commercial or industrial activities, in accordance with the provisions of the Income Tax Law promulgated by Law No. 91 of 2005. The Value Added Tax (VAT) is an indirect tax imposed on all goods and services, except for those exempted by a special provision or are exempted from the tax contained in the VAT Law No. 67 of 2016 and its amendments.
He explained that the Ministry of Finance and the Tax Authority are always keen to achieve tax justice and create the necessary climate for free competition in the market, in addition to assisting financiers and registrants and providing them with all the necessary support. He pointed out that the Authority provides ongoing technical support to practitioners of e-commerce activities through the e-commerce unit in the department head office, which was established in 2021.