New tax proclamation in ethiopia pdf. pdf), Text File (. 285 /2002 (as amended); NOW, THEREFORE, in accordance wit article 55 (1) and (l l) of the Constitution, it is hereby proclaimed as follows. 3 KB Uploaded date: Feb. Go to Laws Index Title: Federal Income Tax Proclamation No. It establishes definitions for key terms related to income tax such as person, body, taxpayer, withholding agent, and permanent establishment. 3. The text is heavily fragmented and contains numerous typographical errors, making it difficult to extract clear information. This decision was made during the House’s second emergency session held July 17th, 2025. 27, 2021 Bot Verification Verifying that you are not a robot 9/ “Excise Tax or Tax” means the excise tax imposed under this Proclamation. Page 1 1 Proclamation No. 79/1995, goods produced in the country and imported from abroad as well as services provided in the country will continue to Bot Verification Verifying that you are not a robot Law Ethiopia Transitional Provisions 1/ Subject to the Tax Administration Proclamation, the laws here by repealed shall continue to apply for the tax year preceding the tax year in which this proclamation enters into force. Definitions and Scope Income from Digital Content Creation:A new definition covers income generated via online platforms, including advertisements, sponsorships Tax News Update: Global edition Something went wrong You can browse our site or look for something specific. 166/1960 shall continue to apply pending the issuance of financial services Code subject to any clear contrary stipulations in other laws. Income Tax Amendment - Proclamation No. Its goals include expanding the tax base, curbing evasion, and enhancing public service funding through fairer taxation. o' 2T hnTlb-,e 3 days ago · Learn about payroll tax in Ethiopia. 4 grh"'fl t0hr:F y"'hc rut aryu rc +7 2017 q. The Proclamation amends the Federal Income Tax Proclamation to enhance fairness, broaden the tax base, and combat tax evasion in Ethiopia. Additionally, it establishes regulations for digital content creators and This document is a proclamation introducing a new federal income tax system in Ethiopia. Scope of Application 1/Without prejudice to the appropriate provisions of the Proclamation No. &. The Proclamation introduces a raft of changes and addresses emerging business aspects. The full proclamation is available for purchase and provides regulations on income tax rates “Organization” means any organization or association provided for in the commercial code or civil code of Ethiopia (as amended), Organization of Civil Societies Proclamation, in an agreement signed with the Federal Government and includes religious bodies; “Tax” means the Property Tax imposed by this Proclamation; Jul 25, 2025 · The Income Tax (Amendment) Proclamation No. Below you can find and download the official Proclamations, Regulations, and Directives in PDF format for your professional or educational reference. 2) Key payroll terms like wages, salaries, pay periods, and gross vs. Understand what to withhold, employer contributions, key deadlines, and the monthly process to stay compliant. 308/2002 Table of Contents 2/ The following new sub-articles (32) and (33) are added after sub-article (31) of Article 2 of the Proclamation and the existing subsequent sub-article (32) is re-numbered as sub-article (34): “32/ ‘tax’ means, for the purpose of this Proclamation, any direct or indirect tax levied or to be levied by the law of the Federal Government; 6/ A body resident in Ethiopia which disposes of an asset constituting chargeable income [of a non-resident body or person] under Article 1 and 2, or facilitates such disposal, shall be liable, as agent, for the income tax payable under Article 61, unless the income tax has been paid by another body. Additionally, it establishes regulations for digital content creators and Bot Verification Verifying that you are not a robot 3/ Notwithstanding sub-article 1 of this article, from among the members of the first round Board to be appointed as per this Proclamation, one member and one person appointed from Civil Societies Organization appointedfromdisables and women and Youths in general two members shall have membership term of 4 years. : 1353/2025 Jurisdiction: Federal Law Type: Proclamation Category: Government and Public Administration Country: Ethiopia 🇪🇹 Format: PDF (Amharic and English) Jul 1, 2025 · Ethiopia Income Tax Proclamation Number 1395/2017, which amends the rates of income for individuals, has been approved by the Ethiopian parliament. Key changes include the implementation of an Alternative Minimum Tax (AMT), taxation on indirect transfers of Oct 15, 2025 · Ethiopia's Income Tax Proclamation (1395-2024) seeks to overhaul the national tax system to boost revenue improve equity and streamline compliance. The Alternative Minimum tax will be applicable on income tax to be collected as of July 8, 2025. Feb 2, 2023 · 2/ Article 45(3), (4), and (5) of the Proclamation shall apply for the purposes of the tax credit allowed under this Article on the basis that the reference to “business income tax” is a reference to “rental income tax”. Mar 3, 2023 · This document outlines the personal income tax rates and exemptions for employment income in Ethiopia. Oct 14, 2025 · Ethiopia’s Income Tax Proclamation (1395-2024) seeks to overhaul the national tax system to boost revenue improve equity and streamline compliance. Dec 17, 2025 · The Income Tax Proclamation (Amendment) No. 1157/2019 A PROCLAMATION TO AMEND THE VALUE ADDED TAX WHEREAS, it has become This document is the Income Tax Proclamation from Ethiopia issued on July 4, 2002 by President Girma Wolde Giorgis. 3 KB Uploaded date: March 11, 2021 Amendment to Procurement of Defence 131. 285/1994 and Article 19 to 33 of the Value Added Tax Regulation No. Short Title This proclamation may be cited as the "Vallk 'IZ'PC Proclamation No. 1395/2025". 6/ Article 56(1) of the Regulation is deleted and replaced by the following new Article 56(1): “56(1) The cost of Class “A” and Class “B” taxable asset provided in the Proclamation shall be adjusted for inflation as determined under a Directive issued by the Minister. The document appears to be a communication from the Minister of Finance of Ethiopia, discussing various financial regulations and guidelines. 1/ ‘‘Special Economic Zone’’ means a geographical area designated by the Ethiopian Investment Board in accordance with this Proclamation which is subjected to customs control, and is attended by business enabling policies, trade facilitation service, infrastructure and utilities, and amenities including a one stop shop, duty and tax Notwithstanding the provision of Sub-Article (4) (b) of Article 3 of this Proclamation, period of service spent, upon a government decision, in an international organization. 979/2016, Ethiopia has formally brought digital platform income into The Value Added Tax imposed by this Proclamation is applicable to Taxable Supplies carried out within the territory of Ethiopia, Taxable Imports, and Reverse Charged Supplies made to a person in Ethiopia by a person outside of Ethiopia without a fixed place of business in Ethiopia. However, the proposed changes to the Civil Society Proclamation highlight ongoing debates about the role and freedom of non-governmental… Proclamation No. ' q\Lg. The amendment broadens the scope of taxable digital services, raises thresholds for employment, rental and business income, and introduces new taxpayer requirements, affecting both residents and nonresidents. y. It also defines income and taxable income. It also establishes the Feb 27, 2021 · Transpoprt and Milles Presumptive tax final-English 16. 1395/2017 to the Federal Income Tax Proclamation 979/2016. It also establishes the Bot Verification Verifying that you are not a robot 1/ Subject to provisions of this Part, business income tax shall be imposed for each tax year at the rate or rates specified in Article 19 of this Proclamation on a person conducting business that has taxable income for the year. It aims to establish a modern tax system that supports economic development and makes the system fair by taxing previously untaxed incomes. 1395/2025, introducing sweeping changes that affect nearly every business and individual. : 1395/2025 Jurisdiction: Federal Law Type: Proclamation Category: Economic and Trade Regulation Country: Ethiopia 🇪🇹 Amends / Repeals: Federal Income Tax - Proclamation: 979/2016 Format: PDF (Amharic and English) The Proclamation introduces a new reporting obligation for government entities, requiring them to submit information on foreign employees working in Ethiopia, including non-diplomatic staff of foreign embassies and international organizations. It also describes exemptions for transport, per diem, and hardship allowances. To achieve this goal, we will put more emphasis on resource mobilization from domestic sources, particularly tax revenues. Furthermore, the House deliberated and approved the draft proclamation amending the Ethiopian Election, Political Parties Registration, and Electoral Ethics Proclamation No. If a taxpayer falls under Category B (taxpayers not required to reg-ister for VAT), turnover tax cannot be collected because the Turn-over Tax Proclamation has been repealed. Examples of calculating salary income tax, cost sharing, pension and other deductions to find the employee's net pay. 308/2002 and its amendments is repealed by this proclamation. It covers: 1) The importance of accurate payroll accounting for employee morale, government compliance, and business profits. The Directive has been issued in line with the transfer pricing provisions under Section 79 of the Federal Income Tax Proclamation No. 1395/2025 has been enacted, revising most provisions of Ethiopia’s Federal Income Tax Proclamation No. The work was carried out with the financial and technical support obtained from the World Bank Group’s (WBG) Ethiopia Investment Created Date 3/28/2019 7:01:11 PM. txt) or read online for free. The Ethiopian land tenure system is also the concern of history, sociology, agriculture, and economics and as a result different writers from all these disciplines have written a lot of materials The tax under Article 62 of the Proclamation on the repatriated profit of a non-resident body conducting business through a permanent establishment in Ethiopia shall be imposed by reference to the body‟s tax year. Bot Verification Verifying that you are not a robot Jul 12, 2024 · The new VAT Proclamation, recently tabled for discussion in Parliament, maintains a uniform 15 percent tax rate and removes wide-ranging exemptions on products that are not heavily consumed by low-income groups. It provides detailed transfer pricing rules to guide the pricing of controlled transactions, in line with the provisions We would like to show you a description here but the site won’t allow us. net earnings. 21 A reference in this Proclamation to a previous tax year includes, when the context requires, a reference to a tax year under the Jul 17, 2025 · Hence, the Income Tax Amendment Proclamation was ratified with a majority vote, five against and twelve abstentions. Income tax Jul 25, 2025 · Executive Summary: Ethiopian Income Tax Overhaul 2025 Ethiopia has enacted a significant overhaul of its income tax system with the new Amendment Proclamation No. Key changes requiring immediate attention include: A new mandatory Alternative Minimum Tax (AMT), requiring businesses to pay at least 2. ” ፯/ የደንቡ አንቀጽ ፷፰ ተሠርዞ Ethiopia Turnover Tax (TOT) Proclamation No. pdf 488. The new monthly tax table below is effective from 1 July 2025. Corrigendum 11/2013 on and Suppressi and Smuggling of Persons Proclamation on 1178/2020 Article 3(2) The document discusses Ethiopia's payroll system and related terms. It gives attention Sep 25, 2025 · The new law forms part of the Ethiopian government’s broader effort to modernise the tax system, expand the tax base, and raise the contribution of tax and customs revenues to 11% of the GDP. 2/ The following new sub-articles (32) and (33) are added after sub-article (31) of Article 2 of the Proclamation and the existing subsequent sub-article (32) is re-numbered as sub-article (34): “32/ ‘tax’ means, for the purpose of this Proclamation, any direct or indirect tax levied or to be levied by the law of the Federal Government; Law Ethiopia The Government of Ethiopia is determined to accelerate economic development by pursuing pro- poor growth-oriented policies coupled with a stable macroeconomic environment. 10/ “Exempt Goods” means goods specified in the Second Schedule. The tax under Article 62 of the Proclamation on the repatriated profit of a non-resident body conducting business through a permanent establishment in Ethiopia shall be imposed by reference to the body‟s tax year. 1157/2019 Value Added Tax (amendment)Proclamation. 979/2016 (ITP), and is substantially aligned to the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Key changes include the introduction of a simplified tax regime for small businesses, new definitions for digital income, and revised tax rates for employment and rental income. t,. It provides the tax rates in a table with 7 brackets and examples of how to calculate taxes owed. The new Income Tax and Electoral amendments signal a move towards modernizing the country's governance frameworks. “Organization” means any organization or association provided for in the commercial code or civil code of Ethiopia (as amended), Organization of Civil Societies Proclamation, in an agreement signed with the Federal Government and includes religious bodies; “Tax” means the Property Tax imposed by this Proclamation; 1/ ‘‘Special Economic Zone’’ means a geographical area designated by the Ethiopian Investment Board in accordance with this Proclamation which is subjected to customs control, and is attended by business enabling policies, trade facilitation service, infrastructure and utilities, and amenities including a one stop shop, duty and tax 3/ The provisions of Books Three and Four of the Commercial Code Proclamation No. 4/ without prejudice to any international agreement to which Ethiopia is a party, the service rendered by naturalized Ethiopian in any private organization covered by the Bot Verification Verifying that you are not a robot The explanatory notes on the Federal Tax Administration Proclamation 983/2016 are developed as part of the Ethiopian Revenue and Customs Authority (ERCA) and Ministry of Finance and Economic Cooperation’s (MoFEC’s) work on the federal tax system in Ethiopia. The amendment is aimed at modernizing the tax system and keeping up with changes in the economy. 1162/2019. Power to Issue Regulations The Council of Ministers may issue regulations necessary for the implementation of this Proclamation. 1365/2025 PROPERTY TAX PROCLAMATION WHEREAS, the existing land rental and building tax system has not enabled urban areas in Ethiopia to meaningfully generate their own revenues to meet the expanding service and facility needs of their fast- growing resident population; The new investment law defines a foreign investment as the expenditure of capital by a foreign investor for the purpose of establishing a new enterprise, or to acquire, expand or upgrade an existing one, in any eligible area of investment. 1/ If the total rental income for a tax year of a taxpayer keeping records is exceeded by the deductions allowed to the taxpayer under Article 15(7)(c) of the Proclamation for the tax year, the amount of the excess shall be treated as a rental loss for the year. Introduction The House of Peoples’ Representatives of Ethiopia has approved a new amendment cited as Income tax Proclamation No. 3) Ethiopia's regulations around overtime pay rates and income tax deductions from employee earnings. This document is a proclamation introducing a new federal income tax system in Ethiopia. Find out more on Chambers and Partners. Ethiopian Legal Brief With the introduction of Income Tax (Amendment) Proclamation No. 979/2016. The Income Tax (Amendment) Proclamation No. : 979/2016 Jurisdiction: Federal Law Type: Proclamation Category: Economic and Trade Regulation Country: Ethiopia 🇪🇹 Amended By / Repealed By: Income Tax Amendment - Proclamation: 1395/2025 Amends / Repeals: Income Tax - Proclamation: 286/2002 Format: PDF (Amharic and English The Proclamation is the primary law on investment adopted by the Ethiopian Parliament (the House of Peoples’ Representatives), and the Regulation, adopted by the federal executive body (the Council of Ministers), details and helps implement the provisions of the Proclamation. 1395/2025, which amended Federal Income Tax Proclamation No. Sep 16, 2024 · The Federal Government of Ethiopia recently introduced a new Value Added Tax Proclamation and repealed a 2002 proclamation. As we reported in our April 2020 briefing on the subject of Ethiopia's new investment law, the IP opens up the Ethiopian economy to further private sector ተዋዋዩ ባለስልጣን የሚያስተዳድራቸውን የመንግሥት in accordance with the procedures provided in this Proclamation and submit its recommendations to the Board; 9/ monitor and evaluate the progress of implementation of Public Private Partnerships; May 25, 2022 · Ethiopian Tax Law New Text Book - Free download as PDF File (. We would like to show you a description here but the site won’t allow us. 270/2002 that provide pension coverage to foreign nationals of Ethiopian origin and international agreements to which the country is a party, this Proclamation shall be applicable to employees of private 5/ “Income Tax Proclamation” shall mean the Federal Income tax Proclamation no 979/2016; 6/ “International transaction” shall mean any transaction between a taxpayer and a non-resident 7/ “Non-resident” shall mean a person who is not a resident in Ethiopia. Browse different tax rate table (tax brackets) and the calculation formula based on gross salary. Ethiopian Federal Laws Go to Laws Index Title: Federal Civil Servants Proclamation No. Aug 1, 2025 · The legal landscape in Ethiopia for July 2025 has been marked by a strong focus on fiscal and electoral reform. It includes references to specific laws and procedures related to financial management and taxation. The Value Added Tax imposed by this Proclamation is applicable to Taxable Supplies carried out within the territory of Ethiopia, Taxable Imports, and Reverse Charged Supplies made to a person in Ethiopia by a person outside of Ethiopia without a fixed place of business in Ethiopia. 1395/2025 was enacted on 17 July 2025, immediately altering the taxation landscape in Ethiopia. NOW, THEREFORE; in accordance with Article 18(6), Article 20, Article 21(5) and Article 27(2) of the National Bank of Ethiopia Establishment (as Amended) Proclamation No. 214 በኢትዮጵያ ምርት ገበያ አማካንነት በሚከናወነው ለውጭ ገበያ በሚቀርብ ቡና ግብይት ላይ የሚከፈለውን ታክስ አፈፃፀም ለመወሰን የወጣ መመሪያ ቁጥር 214-2013. This document outlines the main legislative changes from the amendment. 13952025 - Free download as PDF File (. Turnover Tax Proclamation No. One moment, please Please wait while your request is being verified Feb 2, 2023 · 2/ Article 45(3), (4), and (5) of the Proclamation shall apply for the purposes of the tax credit allowed under this Article on the basis that the reference to “business income tax” is a reference to “rental income tax”. Affected taxpayers must evaluate the Addis Abeba City Government Revenues Authority Gullele Sub-City Small Scall Tax Payeres Branch Office 3 pages PDF No ratings yet Dec 17, 2025 · The Income Tax Proclamation (Amendment) No. 11/ “Export” means to take or cause to be taken from Ethiopia to a foreign country, or to an export processing zone. The proclamation defines key terms related to income tax such as business income, employment income, exempt income, gross income, and taxpayer. The provisions hereby amended and the law repealed shall continue to apply for the tax year preceding the tax year in which this Proclamation enters into force. To reduce poverty and improve the welfare of its citizens, the Government shall invest in education The Proclamation amends the Federal Income Tax Proclamation to enhance fairness, broaden the tax base, and combat tax evasion in Ethiopia. The Amendment Proclamation introduces new tax rates and brackets, as well as new rules for tax collection. Major reforms include taxing digital economic activities, adjusting income brackets, introducing an Alternative Minimum Tax Appendix 1 List of goods and services exempt from value added tax In addition to those listed under Article 8 (2) of the Value Added Tax Proclamation No. Bot Verification Verifying that you are not a robot FEDERAL TAX ADMINISTRATION PROCLAMATION WHEREAS, it is necessary to enact a separate tax administration proclamation governing the administration of domestic taxes with a view to render the tax administration system more efficient, effective and measurable ; WHEREAS, it is believed that introducing the system of advance tax ruling helps to address the problem of prolonged pendency of taxpayers We would like to show you a description here but the site won’t allow us. Without prejudice to Article 84 01" this Proclamation, Employment income tax shall be imposed for each calendar month or part thereof at the rate or rates specified in Article II of this Proclamation on an employee who receives employment income during the month or part thereof. PROCLAMATION No. . Jan 15, 2026 · Access a comprehensive collection of Ethiopian tax laws and guidelines. Introduction Understanding the Ethiopian land tenure system is important to student of land law for it gives students general historical and factual ideas about the land holding system in the country. 9 KB Uploaded date: March 11, 2021 Defence Procurment Directive. 1395/2025, passed on 17 July 2025, modernizes Ethiopia's tax system by introducing mandatory advance tax payments, reducing the minimum presence threshold for permanent establishments, and expanding tax obligations to digital businesses. 5% of Dec 31, 2019 · The objective of this study is to assess the taxpayers' attitude towards the new tax system as per the new tax proclamation in Ethiopia in relation to tax fairness, tax complexity, and tax efficiency. 1. Aug 5, 2025 · Employee payroll calculation in Ethiopia using 2025 / 2017 tax rates. Ethiopian Federal Laws Go to Laws Index Title: Income Tax Amendment Proclamation No. Jul 27, 2025 · This Article gives an overview about "What’s Changed under Ethiopia’s New Income Tax (Amendment) Proclamation No. 0 KB Uploaded date: March 11, 2021 Ethiopia's Final MTDS (2016-2020) For MoF Website January 2019 663. Ethiopian Federal Laws Go to Laws Index Title: Income Tax Amendment Proclamation No. 591/2008, the National Bank of Ethiopia has issued this Directive as follow: ?h. chuk otbjq pil ouvlycj tbtpcij tsbz rqe wfnkwc fyaafw innz