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Lack of clarity over tax policies for e-commerce platforms hinder investments - Daily News Egypt

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Lack of clarity over tax policies for e-commerce platforms hinder investments

Environment surrounding e-commerce activity developed rapidly within 1 year, says Moharram & Partners Managing Partner

Country Manager at OLX Egypt, Dina Gobran, said that the lack of clarity over tax policies for e-commerce platforms contributes to the disruption of investments earmarked for such activities.

Last month, the Ministry of Finance held a meeting with Facebook representatives in light of the company’s response to the ministry’s call to review the best tax applications related to online services and e-commerce. Facebook has experienced varying outcomes, both positive and negative, in this field, all over the world, and looks to ensure the implementation of a clear and consensual mechanism, specifically in Egypt.

During the E-Commerce Summit 2019, Gobran added that the steps and procedures for issuing the new draft law to regulate social media in Egypt must be completed, in addition to the issuance of specific definitions of online platforms including their responsibilities.

She called on the state to help in integrating the informal economy in order to digitally transform entities and companies participating in the grey economy.

For his part, Managing Partner at Moharram & Partners | Public Affairs & Strategic Communications, Moustafa Moharram, said the government should reassure investors on the stability of the regulatory framework governing e-commerce and ensure there is no double taxation on companies operating in the sector.

Moharram added that the environment surrounding e-commerce activity has developed rapidly within one year, with much of the legislative structure of the telecommunications sector completed.

He explained that this is being completed through the law of e-commerce, which regulates the e-commerce market, which has had a clear impact through cooperation sessions between the government and international companies such as Facebook, Google, and other large companies.

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