By using ECSS site, you agree to the Privacy Policy and Terms of Use.
Accept
ECSS - Egyptian Center for Strategic StudiesECSS - Egyptian Center for Strategic Studies
  • Home
  • International Relations
    International Relations
    Show More
    Top News
    Mutual Benefits: The Egyptian-Greek Maritime Boundary Delimitation Deal
    August 23, 2020
    Egypt-Sudan Rapprochement in the Face of Major Challenges
    March 20, 2021
    The Economic Repercussions of Ethiopia’s Conflict
    October 9, 2021
    Latest News
    The India-Middle East-Europe Corridor: Political Drivers and Challenges
    September 25, 2023
    BRICS Plus and Africa: Challenges and Mutual Gains
    September 21, 2023
    Enhancing Readiness: Germany Leads NATO Exercises in the Baltic Sea
    September 19, 2023
    Breaking Isolation: Sudan Following Al-Burhan’s Tours and Hemedti’s Initiative
    September 14, 2023
  • Defense & Security
    Defense & Security
    Show More
    Top News
    Turkey and the Muslim Brotherhood: A temporary refuge and alternative Havens
    October 1, 2020
    Assessing Deterrent Measures and the Prospects of War: US Military Movement in the Gulf to Confront Iran
    June 22, 2020
    A Habitual Trend: Terrorist Organizations’ Exploitation of Natural Disasters
    March 25, 2023
    Latest News
    Explaining the Rise of Daesh in Syria
    August 26, 2023
    Clashes in Tripoli: Do Rapid Developments in Libya Clash with the Road Map?
    August 22, 2023
    Ukraine’s Special Operation: A Stopgap
    August 1, 2023
    Why are Terrorist Organizations Increasingly Relying on Economic Jihad?
    July 27, 2023
  • Public Policy
    Public Policy
    Show More
    Top News
    Green economy: Egypt’s gateway to sustainable development
    March 27, 2021
    Promoting Social Protection: Egypt’s Commodity Subsidy System
    March 1, 2022
    International media and Egypt’s role in the Gaza ceasefire: The case of Qatar’s Al-Jazeera
    May 29, 2021
    Latest News
    Goals and Mechanisms: Integrating the Informal Economy into the Formal Economy
    September 23, 2023
    Playing the Pressure Card: The Ramifications of Boosting US-Taiwan Economic Relations for China
    September 17, 2023
    Egypt’s Long-Term Debt Rating Upgraded to Stable
    September 10, 2023
    Whither Inflation Rates in Egypt?
    August 24, 2023
  • Analysis
    • Opinion
    • Analysis
    • Situation Assessment
    • Readings
  • Activities
    • Conferences
    • ECSS Agenda
    • Panel Discussion
    • Seminar
    • Workshops
  • ECSS Library
    • Digital Editions
    • Periodicals
    • Special Editions
  • Shop
  • العربية
  • Advertise
All Rights Reserved to ECSS © 2022,
Reading: Global Trend: Taxing Bloggers and Online Content Creators
Share
Notification Show More
Latest News
The India-Middle East-Europe Corridor: Political Drivers and Challenges
Arab & Regional Studies
Goals and Mechanisms: Integrating the Informal Economy into the Formal Economy
Economic & Energy Studies
BRICS Plus and Africa: Challenges and Mutual Gains
African Studies
Fifty Years On: The Realities of the October War (2)
Opinion
Enhancing Readiness: Germany Leads NATO Exercises in the Baltic Sea
European Studies
Aa
ECSS - Egyptian Center for Strategic StudiesECSS - Egyptian Center for Strategic Studies
Aa
  • اللغة العربية
  • International Relations
  • Defense & Security
  • Special Edition
  • Public Policy
  • Analysis
  • Activities & Events
  • Home
  • اللغة العربية
  • Categories
    • International Relations
    • Defense & Security
    • Public Policy
    • Analysis
    • Special Edition
    • Activities & Events
    • Opinions Articles
  • Bookmarks
Follow US
  • Advertise
All Rights Reserved to ECSS © 2022, Powered by EgyptYo Business Services.
Public Policy

Global Trend: Taxing Bloggers and Online Content Creators

Dr.Omar Alhosainy
Last updated: 2022/11/02 at 10:15 PM
Dr.Omar Alhosainy
Share
10 Min Read
Global Trend: Taxing Bloggers and Online Content Creators
SHARE

In late September 2021, the Egyptian Tax Authority (ETA) released a statement imposing taxes on bloggers and digital content creators, particularly YouTubers. The statement indicated that individuals engaged in online content creation (i.e. bloggers and YouTubers) should apply for income tax filing and register for VAT when their revenues exceed EGP 500,000 within 12 months from the date of commencement of their activity – according to head of the ETA, Reda Abdel-Kader.

In this vein, the ETA made clear that it actively follows up with the Ministry of Finance to list transactions made through e-platforms to determine who carries out them towards integrating the informal economy into the formal sector and securing rights of the State’s public treasury. As it turns out, the e-commerce unit at ETA is the entity primarily responsible for these operations, i.e. listing, following-through, and registering companies that engage in e-commerce activity.

How Blogging and Content Creation Relate to E-Commerce?

According to Wikipedia, a blog is a discussion or informational website published on the World Wide Web consisting of discrete informal text entries (posts). Until 2009, blogs were usually the work of a single individual, occasionally of a small group, and often covered a single subject or topic. In the 2010s, multi-author blogs (MABs) emerged, featuring the writing of multiple authors and sometimes professionally edited. The rise of social media and other microblogging systems helped integrate blogs into the news media. The word “blog” can also be used as a “verb”, meaning to maintain or add content to a blog. 

On the other side, e-commerce is a modern form of marketing and selling imposed by changes in communication technologies. A commercial transaction can be deemed an e-commerce transaction when the Internet or any other electronic means are used for transferring the ownership of goods (selling) or delivering the required services. The outbreak of Covid-19 pandemic resulted in an unprecedented reliance on e-commerce worldwide. Sales teams came to receive purchase and sales orders and do marketing of services and goods through a variety of e-tools including phone, fax, television, and the internet, in substitution for traditional face-to-face meeting within branches.  

Over time, blogs and blog content were used directly in e-commerce and advertising, either by advertising on bloggers’ sites or by employing the evolving model of Consumer Generated Advertising (sponsored content), a new model of business-to-consumer (B2C) marketing. Of all the different forms of blog advertising, sponsored posts are the most controversial. These sponsored posts may come in the form of comments, reviews, opinions, or videos, etc. with a link to the webpage or product pages of the website of the sponsor.

In this sense, blogs has led to the breakdown of the traditional advertising model in several sectors, where businesses can now bypass advertising agencies (which used to serve as the sole interface with the customer) and connect with customers directly via social media. This gave rise to the emergence of blog advertising companies that made capital out of this new development. However, this development was viewed negatively by many people who see any form of commercial activity on blogs as undermining the credibility of the blogosphere.   

Merging Blogging into Formal Economy Globally 

Recently, there has been a global drive towards integrating blogging and content creation activities into the formal economy, after hundreds of thousands of users have turned to using video platforms such as YouTube and Tiktok, along with other usual means of social communication, in lucrative commercial and advertising activities. Dozens of countries now have regulations for taxing content creators depending on earnings and means of content sharing. Examples of such countries include the United States and European Union (EU) countries, where governments in these countries work jointly with companies owning online content platforms to monitor the financial transactions of users.

Google, which owns Google AdSense, Google Ads, and YouTube, was one of the first collaborating companies. It deducts US taxes from YouTube earnings coming from U.S. viewers. Further, it formally asks users of its services to submit their tax info so that it can determine the correct withholding rate. If tax info isn’t provided, Google may be required to withhold at the maximum rate 

Additionally, Google introduced YouTube Partner Program (YPP), which helps collect tax info from content creators. YPP provides a clear mechanism for deducting taxes from YouTube earnings from viewers of ad views, YouTube Premium, Super Chat, Super Stickers, and Channel Memberships.

Under Chapter 3 of the US Internal Revenue Code, companies, including Google were given the responsibility to collect tax info, withhold taxes, and report this to the Internal Revenue Service (IRS). Actual implementation of withholding procedures started in early June 2021. However, these companies are not eligible to provide content creators with advice on tax issues, as they need to consult tax professionals to better understand their tax situation

Monetizing creators on YouTube, regardless of their location in the world, were given a time limit to submit their tax info before 31 May 2021.  If this tax info isn’t provided by the specified date, Google may be required to deduct up to 24 percent of the user’s total earnings. 

In this respect, Google stated that tax-withholding requirements could differ depending on the creator’s country of residence and whether they’re eligible to claim tax treaty benefits or identify as an Individual or a Business. Withholding rates range between 0-30 percent on earnings of creators outside of the United States which they generate from viewers in the US. The rate depends on whether the user’s country has a tax treaty relationship with the United States or not. For business accounts, the default-withholding rate will be 30 percent on US earnings. If the payee is outside of the US businesses in the United States, it will be subject to 24 percent withholding on total earnings worldwide. For Individual accounts, backup withholding will apply and 24 percent of total earnings worldwide will be withheld.

The Tax Situation of Bloggers and E-Commerce Companies in Egypt

According to the ETA, there are three types of companies that engage in e-commerce activity: 1) companies that have e-commerce as one of its means for sales and distribution, 2) companies whose activity is based primarily on selling and distributing of goods and services through electronic means, and 3) companies that use digital platforms to display products and facilitate comparisons for buyers.

Regarding the tax status of companies engaged in e-commerce, the ETA clarified that with regard to income tax, all companies that engage in commercial or non-commercial activities (freelancers) are subject to income tax under Law 91 of 2005 and are, therefore, required to register and declare their income from the date of commencement of activity.

As for VAT, under VAT Law No. 67 of 2016, companies that sell goods or provide services electronically are required to register with the Tax Authority when their annual revenue exceeds EGP 500,000. Similarly, individuals and entities that provide consultancy and professional services are required to register with the Tax Authority from the date of commencement of their activity and pay a VAT of 10 percent. Companies that sell any of the goods or services included in the goods’ list are required to register with the Tax Authority to pay the tax and transfer it to the category corresponding to the provided goods or service as stipulated in the law.

Related Posts

Goals and Mechanisms: Integrating the Informal Economy into the Formal Economy

Playing the Pressure Card: The Ramifications of Boosting US-Taiwan Economic Relations for China

Egypt’s Long-Term Debt Rating Upgraded to Stable

Whither Inflation Rates in Egypt?

TAGGED: Bloggers, Featured, online content, Tax
Dr.Omar Alhosainy December 7, 2021
Share this Article
Facebook Twitter Whatsapp Whatsapp LinkedIn Telegram Email Copy Link Print

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest Articles

The MB’s secret cell and its relationship with intelligence apparatuses
Analysis January 12, 2021
The Challenge for Hegemony: Will Putin Limit the Impact of the Nixon Shock?
International Relations May 8, 2022
Opportunities and Challenges of Investment in Africa
International Relations August 29, 2021
Gaza ceasefire: The day after, what comes next?
Opinions Articles May 22, 2021

Latest Tweets

International Relations

  • African Studies
  • American Studies
  • Arab & Regional Studies
  • Asian Studies
  • European Studies
  • Palestinian & Israeli Studies

Defence & Security

  • Armament
  • Cyber Security
  • Extremism
  • Terrorism & Armed Conflict

Public Policies

  • Development & Society
  • Economic & Energy Studies
  • Egypt & World Stats
  • Media Studies
  • Public Opinion
  • Women & Family Studies

The Egyptian Center for Strategic Studies is an independent non-profit think tank, providing decisions-makers by Policy alternatives, the center was establised in 2018 and comprises a group of experts and researchers from diffrent generations and scientific desciplines. 

All Rights Reserved to Egyptian Center for Strategic Studies - ECSS © 2022

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?