Saturday 25 September 2021
I wrote – Shaima Hefzy:
The Egyptian Tax Authority called on content providers and owners of e-commerce platforms to open a tax file with the authority, to collect income tax, in addition to registering for value-added tax if its total revenues amounted to half a million pounds.
According to the IRS customer service officer, the decision is addressed to “any page or group that sells any product through any social media platform, whether Facebook, WhatsApp, Telegram, or Instagram,” as long as this activity generates a financial return.
The official added that it also applies to anyone who provides visual content “videos” via YouTube, Facebook or others, as long as he receives a fee in exchange for the number of views, whether it is entertainment, educational or otherwise.
These decisions do not apply to the owners of pages that provide a public service, and no compensation is charged, as long as the founder of the page does not receive a financial compensation for advertising products, according to the official.
With regard to small-sized online commerce pages, which do not generate large profits, the customer service official said that anyone who has a page through which he sells, must open a tax file with the authority, and then comes the step of determining the tax due on him, according to the amount of income that he receives. It returns from the trade.
“If the merchant’s income is less than the exempted bracket, which is 15,000 pounds, he will not pay tax, all of this is determined according to each case individually, but the basis is the need to open a tax file,” according to the customer service official.
With regard to calculating the income tax, the customer service official said that it is calculated from the date of issuing the tax card, unless it is proven that the customer has been working for long periods, then the authority can study the case and assess its position.
As for the value-added tax, it is required to register in it those whose revenues reach 500,000 pounds annually.
The authority said in a statement today, Saturday, that individuals who engage in content-making activity (bloggers – YouTubers) must go to the office within whose scope the main headquarters of the activity is located (income) to open a tax file to register with the competent income tax mission, as well as register with the competent value-added mission when its revenues reach 500 thousand pounds within twelve months from the date of practicing the activity.
To open the tax file, the client goes to the tax office in the area of his residence, but there are still some mechanisms that will be announced.
The customer can also go to the department’s e-commerce unit to inquire about the inventory, follow-up and registration of companies that engage in trade activity through websites.
Reda Abdel Qader, head of the Egyptian Tax Authority, said that the Ministry of Finance is closely following the Tax Authority to make every effort it has to achieve tax justice by listing the tax community more accurately, especially transactions that take place through electronic platforms, and determining who does them, to include the non-existent economy. The official system of the official system, and to obtain the rights of the state’s public treasury.