It is quite clear that the intention of the legislation was that the burden of taxation should fall not on the farmer, but on the landowner only. D other income including income from royalty, income paid for services rendered outside of ethiopia, income from. Ethiopian chamber of commerce ecc, ethiopian business development services network ebdsn, on behalf of. The government collects this tax from any individual employees, other than. The federal government of ethiopia financial administration proclamation no. For many decades, the tax contribution to gdp was very less and this needs an improvement. On february, 2020, the federal parliament approved a new excise tax proclamation no. Tax counting in ethiopian context, 2 nd edition addis ababa, ethiopia challenges of value added tax administration. Yesegat 8 studied vat administration problems at large, vat audit in particular, gebeyehu studied tax audit and its role in increasing government revenue in ethiopia and mihret 9 examines tax. Federal income tax proclamation exclusive document.
Category a includes any company incorporated under the tax law of ethiopia or in or a. Constitution of the federal democratic republic of ethiopia, it is hereby proclaimed as follows. House approves revised vat proclamation ethiopian news agency. This proclamation may be cited as the federal government of ethiopia financial administration amendment proclamation no.
Current as of september 2019 download print version pdf this describes the legal framework of nonprofit organizations also known as nongovernmental organizations or ngos in ethiopia, along with translations of legislative provisions relevant for a foundation or advisor undertaking an equivalency determination of a foreign grantee under irs revenue procedure 9294. This site is like a library, use search box in the widget to get ebook that you want. Definitions for the purpose of this proclamation, unless the context otherwise requires. Vat is started in our country in 2002 by proclamation 2852002. Taxation in ethiopia direct and indirect taxes categories of tax payers declaration of income and assessment of taxes tax incentives addis ababa 12005 published by. Prevention and suppression of terrorism crimes proclamation. Councils of ministers tax administration regulation th is regulation is issued by the council of ministers pursuant to article 5 of the definitions of powers and duties of the executive organs of the federal democratic republic of ethiopia proclamation no. Ethiopian tax administration download ebook pdf, epub. This site is like a library, use search box in the widget to. Reliable information about the coronavirus covid19 is available from the world health organization current situation, international travel. May 2020 salary income tax calculation in ethiopia latest. C the ministry of finance and economic cooperation mofec has announced this new tax proclamation. Four schedules of income a income from employment, b income from rental of buildings, c income from business, and.
The new income tax in ethiopia new income tax calculations. The major tax reforms in ethiopia occurred in the 1940s, in the aftermath of the ethiopian revolution of 1974, after the fall of the derg in 1991 and most recently in the 2002 tax reforms. Ethiopian ministry of revenues mor is the body responsible for collecting revenue from customs duties and domestic taxes. The ethiopian parliament has approved a new excise tax proclamation no. Below we provide a summary of the major changes introduced by the new proclamation. The scope of application of the new proclamation is on excisable imported goods and those manufactured in ethiopia by licensed. The month of nahase and pagumen shall be aggregated and treated as one calendar month. Challenges and opportunities in the mekelle branch of the ethiopian revenue and custom authority erca markos abraha gebreegziabher a thesis submitted in partial fulfilment of the requirement. This proclamation may be cited as the value added tax proclamation no. Federal negarit gazeta establishment proclamation resources. Federal democratic republic of ethiopia ministry of labour. Federal income tax this regulation is issued by the council of ministers pursuant to article 5 of the definitions of powers and duties of the executive organs of the federal democratic republic of ethiopia proclamation no. Tax evasion under ethiopian tax laws conceptual introduction.
Assess the level of contribution of expatriate employment in knowledge and skill transfer. Update on ethiopias new excise tax proclamation africa. Hate speech and disinformation prevention and suppression proclamation. Employment income tax is a tax on the earnings of an employee. House approves revised vat proclamation ethiopian news. Federal income tax proclamation whereas, it has become necessary to introduce modern and efficient tax system that supports the economic development and which is in accord with the level of economic development achieved so far. Short title this proclamation may be cited as the federal government of ethiopia financial administration proclamation no. Issued under the authority of the house of peoples representatives of the federal democratic republic of ethiopia federal tax administration proclamation federal negarit gazette extraordinary issue proclamation no. In addition to raising revenue, the mor is responsible to protect the society from adverse effects of smuggling. Ethiopias excise tax regime has been in place for almost two decades. The study refers only to those expatriates who are required to possess work permit to work in ethiopia. This proclamation may be cited as the federal income tax proclamation no. Numerous and frequentlyupdated resource results are available from this search.
Similarly, the house approved the revised labor proclamation no. The ethiopian tax system has an operating set of legal institutions such as the parliament, tax authorities, and tax appeal tribunals and courts, procedures for assessment. New salary income tax in ethiopia as of the new budget year, which starts at hamle 2008 e. Mekelle university college of business and economics department of accounting and finance value added tax vat administration and revenue performance. According to the current federal income tax proclamation no. Tax administration is important activity in tax collection because it is the source of revenue for government. As tax administration proclamation aims to govern all domestic taxes. Tax administration is good way as it is recent issue in our country. Definitions a term used in this proclamation that is defined in the tax administration proclamation shall have the meaning in the tax administration proclamation unless defined otherwise in this proclamation. As most of the developing countries do, ethiopia was highly dependent on external financial resources to finance its development activities. Tax administration proclamation wheras, 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. Tax system of ethiopia it is clear from the land tax proclamation that the landowner is the person liable to pay land tax. Whereas, it is found essential to make the tax system fair and bring. If the tax authority fails to assess the tax and notify the tax payer of the amount still due within five years from the date of declaration and payment of the tax by the tax payer in accordance with article 6 of this proclamation, the tax so paid shall be final and concessive.
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