{"id":562384,"date":"2021-05-23T04:06:46","date_gmt":"2021-05-23T04:06:46","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/"},"modified":"2021-05-23T04:06:46","modified_gmt":"2021-05-23T04:06:46","slug":"not-so-fast-faangs","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/","title":{"rendered":"Not so fast, FAANGs"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-03\"><\/a> <strong>Multinational tech firms would be made to charge VAT on e-commerce<\/strong> <strong>sales in Egypt in two phases<\/strong> under amendments to the VAT Act being considered by the government, <a href=\"https:\/\/www.elwatannews.com\/news\/details\/5497247?t=push\">El Watan<\/a> reports, citing a source at the House Economic Committee. The changes would be phased in over two years and would see international companies that don\u2019t pay tax in Egypt required to collect and remit 14% VAT on transactions for digital goods and services, the source said.<\/p>\n<p><strong>Phase #1:<\/strong> Providers of digital services would be first to comply with the amendments. Under the proposals, platforms would begin collecting VAT and filing returns a maximum of six months after the law comes into effect.<\/p>\n<p><strong>Phase #2:<\/strong> Businesses that sell goods online would be next up, and would be expected to start complying with the amendments up to two years after they become the law of the land.<\/p>\n<p><strong>The goal is for offshore digital services firms to start paying their fair share. <\/strong>This comes a few months after Egypt <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/10d2a2df-eb72-4873-be6b-0a4857a8b8fc\">ratified an international convention<\/a> designed to make it harder for multinational companies to avoid tax in countries where they aren\u2019t registered. <strong>There\u2019s a growing move to do this everywhere from Europe to Canada<\/strong>, and the Biden Administration seems to have stepped back (a bit) from its predecessor\u2019s blanket opposition to the move.<\/p>\n<p><strong>Keep an eye on the upcoming <\/strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/10d2a2df-eb72-4873-be6b-0a4857a8b8fc\">E-Commerce Act<\/a>, which should set a tax framework for online ads and online product sales, as well as the operations of FAANG companies (Facebook, Amazon, Apple, Netflix, and Alphabet), which could also be affected by a proposed <a href=\"https:\/\/enterprise.press\/stories\/2019\/04\/03\/finmin-looks-to-tax-the-living-daylights-out-of-social-media-ads-e-commerce-players\/\">15-20% stamp tax<\/a> on social media purchases. The bill has been under cabinet review, and is expected to be passed to Parliament soon.<\/p>\n<p><strong>The gov\u2019t is looking to broaden its tax base:<\/strong> The government is looking to increase its tax takings by <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/6f10ef3d-eec0-4f11-a112-c1dee1ee9780\">18% in the coming fiscal year<\/a>, which will raise revenues to EGP 983 bn compared to the EGP 830 bn forecast for FY2020-2021. VAT revenues are currently expected to fall, with the draft budget forecasting EGP 390 mn in VAT receipts during FY2021-2022, down slightly from a projected EGP 401 mn this year.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Multinational tech firms would be made to charge VAT on e-commerce sales in Egypt in two phases under amendments to the VAT Act being considered by the government, El Watan reports, citing a source at the House Economic Committee. The changes would be phased in over two years and would see international companies that don\u2019t [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":562385,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7382],"tags":[199,72,69,639,7110],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-562384","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax","tag-e-commerce","tag-enterpriseam","tag-tax","tag-technology","tag-vat","wpautop","entry"],"acf":{"mongo_id":"4b1f73ee-3ff8-4adf-8b9f-dbfcd00e99c0","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/5\/186.jpg","photo_position":"above","related_issue":[562376],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Not so fast, FAANGs - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Not so fast, FAANGs\" \/>\n<meta property=\"og:description\" content=\"Multinational tech firms would be made to charge VAT on e-commerce sales in Egypt in two phases under amendments to the VAT Act being considered by the government, El Watan reports, citing a source at the House Economic Committee. The changes would be phased in over two years and would see international companies that don\u2019t [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2021-05-23T04:06:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2021\/5\/186.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Not so fast, FAANGs\",\"datePublished\":\"2021-05-23T04:06:46+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/\"},\"wordCount\":359,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2021\/5\/186.jpg?fit=%2C&ssl=1\",\"keywords\":[\"e-commerce\",\"EnterpriseAM\",\"tax\",\"technology\",\"VAT\"],\"articleSection\":[\"Tax\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2021\/05\/23\/not-so-fast-faangs\/\",\"name\":\"Not so fast, FAANGs - 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The law came into force last Thursday, 3 June.What was happening before? Only some companies were\u2026","rel":"","context":"In &quot;LEGISLATION WATCH&quot;","block_context":{"text":"LEGISLATION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/87.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":594706,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/04\/cairo-chamber-of-commerce-to-suggest-changes-to-vat-income-tax-laws\/","url_meta":{"origin":562384,"position":3},"title":"Cairo Chamber of Commerce to suggest changes to VAT, income tax laws","author":"enterpriseam admin","date":"4 September 2019","format":false,"excerpt":"The Cairo Chamber of Commerce held yesterday a meeting to discuss suggestions it is looking to hand over to the government on proposed amendments to the VAT Tax Act and the planned new Income Tax Act, Al Mal reports. Heads of the chamber\u2019s divisions are looking at proposals that would\u2026","rel":"","context":"In &quot;Legislation + Policy&quot;","block_context":{"text":"Legislation + Policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":670929,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/08\/28\/finmin-in-talks-with-construction-players-over-new-vat-rules-but-challenges-remain\/","url_meta":{"origin":562384,"position":4},"title":"FinMin in talks with construction players over new VAT rules, but challenges remain","author":"enterpriseam admin","date":"28 August 2025","format":false,"excerpt":"The discussions saw players highlight a number of hurdles","rel":"","context":"In &quot;Tax&quot;","block_context":{"text":"Tax","link":"https:\/\/enterpriseam.com\/egypt\/category\/tax\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/5\/1092.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":596348,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/26\/govt-could-impose-5-10-schedule-tax-on-social-media-ads\/","url_meta":{"origin":562384,"position":5},"title":"Gov\u2019t could impose 5-10% schedule tax on social media ads","author":"enterpriseam admin","date":"26 August 2019","format":false,"excerpt":"EXCLUSIVE- The government is looking to impose a 5-10% schedule tax on social media and internet search ads on top of the 14% VAT as part of anticipated amendments to the VAT Act, government sources told Enterprise. 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