Digital Economy Activities: Taxation Challenges

This working paper addresses digital economy activities and the challenges they pose to the existing tax systems. The study assesses the tax treatment of digital economy activities as per law no. 91/ 2005 and its amendments, and law no. 67/ 2016, which proved to be ineffective in terms of imposing the income tax and value added tax on digital activities. It also examines the international experiences in imposing taxes on digital economy activities and specific measures that the Egyptian government should take for more effective taxation of these activities.