Egyptian Tax Authority Clarifies Tax Rules for Online Professionals and Freelancers
The Egyptian Tax Authority (ETA), as part of its #Simply awareness campaign introducing the new tax incentives and facilitations, has clarified the tax treatment applicable to individuals working online, including e-learning providers, life coaches, and freelancers.
The Authority explained that these professionals are subject to the provisions of Chapter Four of Egypt's Income Tax Law No. 91 of 2005, as amended, which governs income generated from non-commercial professions.
According to the ETA, taxpayers who maintain regular accounting books and records will have their income tax calculated based on total revenues minus deductible expenses to determine their net taxable income.
For taxpayers who do not maintain regular accounting records, only 10% of total revenues will be deducted as a standard allowance covering all costs and expenses, with income tax calculated on the remaining taxable income.
The Authority also emphasized that entities and businesses dealing with online freelancers and professionals are required to comply with the provisions of Article 70 of the Income Tax Law No. 91 of 2005, as amended.
In addition, the ETA noted that Law No. 6 of 2025, which introduced a package of tax incentives and facilitations, applies to businesses with an annual turnover not exceeding EGP 20 million. Under the law, tax liability is determined according to the taxpayer's annual turnover.
Regarding Value Added Tax (VAT), the Authority explained that most activities carried out as freelance professional services are classified as professional activities and must register for VAT from the first day of conducting business. Revenue generated from these activities is subject to the 10% Schedule Tax, while exported services are subject to a zero-rate VAT.
The ETA further clarified that if a profession involves producing and selling a tangible or intangible product—such as designing and selling mobile applications or computer software—the resulting revenue is subject to the standard 14% VAT, with mandatory VAT registration required once annual sales reach EGP 500,000.
The Egyptian Tax Authority encouraged taxpayers seeking further information to visit the E-Commerce Unit, contact the Authority via email at [email protected], or call the hotline 16395.