Introduction
As discussed in our previous article, the topic of taxation for content creators is an emerging area of interest within the tax community. This article aims to delve deeper into the specific tax practices affecting content creators in Egypt, providing a comprehensive guide to help them navigate this complex subject.
The Meaning of Content Creation
Making or creating content, making videos, audio and music clips, songs, or video or audio broadcasts, or through written or video electronic blogs, and publishing and broadcasting information in specific contexts on platforms, various digital or mobile and computer applications such as:
YouTube/Snapchat/TikTok/Twitter/Instagram/Vimeo/like/Spotify/SoundCloud/Facebook. This is to benefit the public or for entertainment and generate revenues.
Types of Content Creators:
For example, but not limited to:
YouTuber: A content creator, either video or audio, on YouTube who earns revenue based on the number of views, interactions, and other conditions.
Bloggers: A creator of written or visual electronic blogs regularly, generating income from them.
Influencer: A person who inspires or guides the actions of others. Some influencers use this influence to generate interest in something specific (such as a consumer product) by posting it on social media.
Freelancers: Those who operate independently without a subordinate relationship with an employer and work for themselves online.
Types of Content Creation Revenue
The most common types of revenue that content creators receive:
- Revenue from creating visual or audio content
(such as making videos, audio clips, or live streaming on digital platforms or various mobile and computer applications like YouTube, TikTok, Facebook, and Instagram).
- Revenue from advertising and promoting products or services within the content
in exchange for money or the products or services being advertised, such as with mobile phone reviewers (where some companies give the reviewer the mobile device and thus the reviewer keeps the device).
- Revenue from selling channel-specific products known as merchandise.
- Revenue from the financial fund dedicated to short videos
like the YouTube Fund.
- Revenue from collecting donations from followers
through Patreon, YouTube, or similar websites and programs.
- Other cases.
Important Concepts
- Any income generated from any profession or activity, whether this income is earned in Egypt or abroad, if Egypt is the center for practicing the profession or activity, is subject to tax.
- When subject to tax, it is necessary to comply with the provisions of tax laws, the most important of which include the process of tax registration with the Egyptian Tax Authority and then submitting tax returns on their legal due dates.
Types of Taxes Related to Content Creation
- Income Tax:
This is a direct tax imposed on the income of natural persons (sole proprietorships) or the profits of legal persons (companies) generated from practicing non-commercial professions or commercial and industrial activities or providing services, in accordance with the provisions of the Income Tax Law issued by Law No. 91 of 2005 and its amendments.
- Value-added Tax (VAT):
This is an indirect tax imposed on all goods during the stages of trading (buying and selling transactions) or when providing services, except for goods and services exempted from tax, in accordance with the provisions of the Value-Added Tax Law No. 67 of 2016 and its amendments.
Note:
Please be aware that registration for income tax with the Egyptian Tax Authority is required as soon as you start practicing a commercial or professional activity, whether the practice is traditional or electronic.
However, registration for value-added tax has specific conditions that must be met for the activity to be subject to tax in accordance with the provisions of the law.
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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.