What steps are needed to deal with taxing the Freelancer?

Recently, the term Freelance has spread in many areas, especially after the coronavirus pandemic, which forced some to work freelance online without having a dependent relationship with their employers, and without adhering to each enterprise’s different labour standards.

In parallel with this spread, the Egyptian Tax Agency decided to tax the Freelancer and apply it to different mechanisms according to the quality of activity, in order to achieve the principle of tax justice.

As issued by the Egyptian Tax Agency, the Freelancer has been taxed in various areas of employment and the nature of his online activity, including:

Income tax

If you are a freelancer online, you must register with income tax at the Egyptian Tax Authority; Income tax is determined by applying a tax rate and may increase by increasing income.


Activities carried out in the form of free employment in their dependence on the VAT regime are divided into:

Professional activities not associated with a sale

In that case your revenues are subject to a 10% schedule tax, and are also registered with the start of the activity from the first day without linking to the size of the revenues.

Professional activities associated with a tangible or intangible product sold

Revenue for these activities is subject to 14% VAT and the registration limit is 500,000 pounds.

This is what must be adhered to in accordance with what has been approved by the Egyptian Tax Authority, and in case of violation you are liable for legal liability.

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