A 3D plastic representation of the Facebook logo is seen in this illustration in Zenica, Bosnia and Herzegovina, May 13, 2015. REUTERS/Dado Ruvic
Lead: Egypt introduced a Value Added Tax (VAT) regime in 2016, replacing a 10% Sales Tax.
CAIRO – 13 May 2019: Facebook administration announced charging Egyptian-based advertisers on the platform 18 percent on the value of advertising services in case they do not provide valid Egyptian value-added tax (VAT) identification number, Think Marketing Magazine reported.
Egypt introduced a Value Added Tax (VAT) regime in 2016, replacing a 10 percent Sales Tax.
In March, Minister of Finance Mohamed Ma'it said in press remarks that the ministry is working to issue a law on taxes on electronic commerce, including imposing taxes on social media ads. He revealed that Egypt spoke with Google in this regard.
Osama Heikal, chairman of the Committee on Information and Culture, earlier welcomed the steps taken by the Ministry of Finance to finish the bill on imposing taxes on the ads of social media and Google.
Heikal said that the bill aims to protect the Egyptian market and stop Google and Facebook from monopolizing the market and destroying journalism.
He further remarked that the law regulating press and information stipulates that the media content cannot be broadcastbefore the approval of the Supreme Council for Media Regulation.
He added that electronic websites cannot post ads from the Egyptian market unless the website is registered at the Supreme Council and subject to Law 11/1991 on tax evasion.
Heikal stressed that this will apply to all electronic websites including the foreign websites such as Facebook and Google.