Social media ad tax study to be complete this month
**#4 EXCLUSIVE- FinMin to complete study on taxing social media ads this month: The Finance Ministry is set to complete a study on how to tax social media advertising this month, a ministry source told Enterprise. The taxation framework will likely include provisions demanding that ad agencies and social media companies pay a 14% VAT on sales, the source added.
No new legislation for taxing ads and e-commerce: The source said that it was unlikely that new legislation would be drafted to tax social media ads or e-commerce transactions. Instead, the provisions will be included in amendments to existing legislation, including the VAT Act, a move that should fast-track the changes through the House of Representatives.
SMEs Act under final review: The ministry is also conducting a final review of the SMEs Act before presenting the final draft to the Madbouly Cabinet, the source added. He reiterated that the law would use the CBE’s definition of SMEs.
And while we’re on taxes, the Union of Investors Associations is stepping up its lobbying against a real estate tax, with association head Mohamed Farid Khamis now proposing that the real estate tax be scrapped in favor of raising income taxes, according to Youm7. We’re not at all certain we understand the logic there.