Egypt Set to enforce Tax on Social Media Ads & Digital Services

Egypt and Facebook diverse plan to tax digital advertisement

The government of Egypt has collaborated with the Tech Media giant- Facebook, to draft a new tax law that will bind on social media advertisements and all services rendered online.  This move came in tandem with the tax law review process embarked on by its Ministry of Finance, as well as the ministry’s earlier announcement on the introduction of social media tax.

Describing the Redraft law process, Egypt Minister of Finance, Mohammed Ma’it stated that the Ministry and the Tax Authority are in collaborative work with Facebook and others to properly redraft the country’s tax law. They will be benefiting from the Tech giant’s knowledge of taxation and interactions with international society.

Further speaking on the new law, Ma’it stated that the legislation will help the country be in pace with global economic development and digital transformation. It will also keep the country in par with international standards while encouraging entrepreneurial activities in the tech ecosystem.


See also: Egypt-based Startup Swvl valued at $157 million


As soon as the initial drafting are approved, the redrafted law will be reviewed by members of the Ministry of Finance, relevant stakeholders, the civil society and Facebook delegates to ensure community participation. The proposed bill will be extensively reviewed before being passed into law.

Applauding the tax law redraft, a Facebook representative said the reform was a welcome development. He affirmed their readiness to proffer practical solutions, as well as work together with the Ministry of Finance to provide international expertise that will benefit the Egyptian economy.

 

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