TMT 2025

EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Hana ElBarbary and Dima Mazen, Shehata & Partners

• Corporate income tax – companies engaged in digital advertising are liable to pay corpo - rate income tax at a standard rate of 22.5%, calculated on their net taxable profits, in accordance with the same legislation. • Value added tax (VAT) – digital advertising services are classified as taxable services under Value Added Tax Law No 67 of 2016. Consequently, they are subject to VAT at the prevailing rate of 14% once revenues reach or exceed EGP500,000. Ensuring Compliance With Tax Laws To ensure compliance with Egyptian tax laws related to digital advertising, individuals and companies should undertake the following measures: • Tax registration – register with the ETA to obtain a tax identification number for income tax purposes and a VAT registration certifi - cate, if applicable. • Accurate accounting records – keep compre - hensive tax ledgers and accounting books that accurately reflect all transactions, rev - enues, expenses, and applicable tax deduc - tions or credits, in accordance with Egyptian accounting standards. • Timely tax declarations – (a) annual income tax returns: submit annual income tax declarations within the pre - scribed deadlines (for individuals, returns are typically due by 31 March each year; companies must file their returns within the four months after the end of their fis - cal year); and (b) periodic VAT returns: file monthly VAT returns detailing the output tax collected from digital advertising services and any input tax credits. • Electronic invoicing compliance – adhere to the ETA’s electronic invoicing system by

(b) audio-visual media content platforms; and (c) publication and production of reading content. Taxpayer Classification The ETA classifies taxpayers into two categories: • sole proprietorship (individuals); and • companies (corporate). Taxes Applied E-commerce activities are subject to: • revenue tax, which applies to direct income from online services; and • value added tax (VAT), which applies indirect - ly to services rendered to customers. 1.3 Taxation of Digital Advertising Digital advertising has gained significant promi - nence in Egypt, especially following the COV - ID-19 pandemic in 2020, which accelerated the shift towards online platforms. Recognising this growth, the ETA has intensified efforts to incor - porate individuals and companies operating in all streams of e-commerce, including digital advertising, into the formal economy. The ETA’s guidebook on the tax treatment of e-commerce explicitly identifies digital advertising as a tax - able service. Applicable Taxes Digital advertising revenues in Egypt are subject to the following taxes: • Income tax for individuals – individuals earn - ing income from digital advertising activities are subject to income tax based on progres - sive tax brackets, as outlined in the Income Tax Law No 91 of 2005 and its amendments.

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