Egypt to impose income tax on online teaching, private tutoring centres

Doaa A.Moneim , Wednesday 3 Nov 2021

The Egyptian Tax Authority (ETA) on Wednesday called on owners of private tutoring centres and online teachers to open a tax record within a month so that their income could be taxed.

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The ETA has not announced the tax rate for these professions as of yet.

Head of the ETA Reda Abdel-Kader said that the action comes in line with the state’s efforts to engage the informal economy into the formal one and to maintain tax justice in the domestic market.

Egypt’s Ministry of Finance has started to implement a strategy that aims to apply taxes on all types of online content creation and e-commerce activities practiced in the Egyptian market.

Accordingly, in September, the ministry — through the ETA — demanded that bloggers and YouTubers open tax files at their local taxation authority to record their income.

Egypt’s current FY2021/2022, which is worth EGP 2.6 trillion, targets increasing the state’s tax revenues by 18.3 percent.

That includes EGP 297.1 billion in income tax revenues collected from non-sovereign bodies, excluding the CBE, Suez Canal, and taxes on T-bills’ and T-bonds’ proceeds.

It also includes a targeted EGP 449.6 billion in value added tax, a growth of 17.2 percent compared to FY2020/21.

As for the property tax, it is projected to grow by 0.08 percent of GDP in FY2021/22 to record EGP 5.6 billion.

In terms of the customs tax, the government plans to raise it by 12.3 percent to reach EGP 42.4 billion.

It is also eying collecting EGP 380.6 billion in FY2021/22 from non-tax resources.

As a result of the pandemic, Egypt lost EGP 130 billion in state revenues amid the ongoing crisis, according to the ministry.

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