Egypt Finance Minister Mohamed Ma’it revealed that the ministry is close to finish a new income draft law, which includes imposing taxes on social media advertisements (ads) and online services, offered through online platforms.
In a meeting with representatives from social media giant “Facebook“, Ma’it stressed that Egypt is keen to benefit from the company's international experience in the field of taxes on social media ads and online services.
“This new mechanism will be applied by a specialized team from the Ministry of Finance and the tax authority in coordination with Facebook,” the minister added. “The new law aims at coping with the global economic changes and digital transformation that have become the dominant feature, as well as ensuring continuous growth in line with international standards in this regard.”
“This move is part of the government’s plan to integrate the parallel economy into the official one, along with promoting fair competitiveness among entrepreneurs,” he added.
On the other hand, the Facebook representatives welcomed the open dialogue with Egypt in the light of the latest successful economic reforms. Moreover, they confirmed that the company is keen to reach the best practical solutions acceptable to all concerned parties.
In addition, they vowed to cooperate with the finance ministry to provide the company's expertise in this regard.
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