Taxing digital economy – EgyptToday

Taxing digital economy – EgyptToday

CAIRO - 27 January 2021: According to a 2019 report by the United Nations Conference on Trade and Development (UNCTAD), the size of digital economy ranges between 4.5% and 15.5% of the world's economy. Such wide range indicates how it is difficult to measure the value creation, and subsequently, carry out taxation. Since that sector has been rising in steady paces in Egypt, it is worthy to examine how the tax base can be determined in digital economy for that taxation would not be exclusive to physical economic activities causing them to get disadvantaged in competition.

 

The Scene of Egypt's Digital Economy

 

A 2015 Payfort report showcases that Egypt has approximately 15.2 million e-shoppers. Of whom, 72% prefer cash on delivery. The North African state has the largest number of e-shoppers and the third market size in the MENA region. Payfort estimates that the size of digital economy in Egypt will quadruple to record $2.9 billion in 2022 up from $700 million in 2015. In Egypt, online retail takes place through both online shopping platforms and social media by creating pages and accounts offering products for