Insights
Major Changes in Ethiopia’s VAT Regime
On June 27, 2016, during its 36th regular meeting, the House of Peoples Representatives ratified Value Added Tax (VAT) Proclamation No.1341/2016, by replacing Proclamation No.285/1994. The Proclamation became effective immediately upon its approval.
The proclamation incorporated substantial updates in the VAT proclamation, it tried to address changes in economic activities, electronic transactions, tax exemptions, and the relationship between input and output tax, and aligned the system with existing global standards. It is made to create clear and effective legal frameworks that contribute to an efficient implementation of VAT within the national legal system.
Love unto Grave (ፍቅር አስከ መቃብር): The Circulated Contract’s Implications
The well-known and prominent novel love unto Grave (ፍቅር አስከ መቃብር) was adapted in the film series aired by the state media, EBC, in early October. The film series produced by EBC and directed by the renowned cinematographer and director Sew Mehon (Somic). However, after airing for four consecutive episodes, the federal Supreme Court, up on the application of the author heirs issued an interlocutory injection order suspending the broadcasts. Additionally, the court is now entertaining the case brought by the heirs, summoning the defendants to submit their statement of defense.
Legal updates and Recommendations on the Draft Real Estate Bill in Ethiopia
The draft bill on Real Estate Development, Marketing, and Property Valuation has been tabled before the House of Peoples’ Representatives (HPR) for ratification following discussions by the Council of Ministers. This article aims to highlight the contents of the draft proclamation as a legal update and point out areas of concern that should be reconsidered during the ratification process.
Dispute over Taxing Undistributed Profit in the Context of Tax Treaties
By Arba Beyene Highlight on Background of Taxing Undistributed Profit. Taxing undistributed profit of companies, more numerously PLCs in Ethiopia, has for a long time been the reason for complaints and proceedings within the tax dispute resolution system. In 2013 the...
Navigating the Maze: Fair Market Value Issues in Ethiopian Tax Law
By Ketema Adane The Importance and Challenges of Fair Market Value: The issue of "Fair Market Value" (FMV) plays a central role in Ethiopian tax law, impacting various aspects like asset costs, sale considerations, and in-kind benefits. It ultimately affects taxes and...
Ethiopia Implements Revised Excise Tax Rates for Beer, Plastic Bags, and Tobacco
By Ketema Adane Excise Taxes: A Dual Role Excise taxes serve a twofold purpose: generating revenue for the government and influencing consumer behavior. They provide a reliable source of income by taxing goods with consistent demand. Additionally, they discourage...
Ethiopia Flips the Script from Banning Crypto to Launching CBDC
By Ketema Adane Ethiopia Enters the Digital Age: From Crypto Ban to CBDC Launch Introduction While Ethiopia's National Bank of Ethiopia (NBE) establishment proclamation (No. 591/2008) designates Birr as the sole legal tender, a significant shift is underway. On June...
Clock Rewind: Ethiopian Tax Amended Assessment Time Limit Controversy Heats Up
By Ketema Adane Bargicho Ethiopian tax policy emphasizes voluntary compliance through self-assessment. This means taxpayers are periodically obligated to calculate and pay their own tax liability according to relevant tax laws. If a taxpayer misses the deadline for...
Punishing the Victim? The Case of Not Allowing Deduction and Return of input tax for Alleged Fraudulent Invoices
By Arba Beyene Introduction Use of fake invoices created problems like brand falsification, money laundering, terrorist financing and claiming input tax return from tax payers’ money. But sometimes it may also put genuine tax payers in a situation where the input tax...
Ethiopia’s New Commercial Code: Potential Boon or Bane for Minority Stakeholders?
The new squeeze-out provision in Ethiopia's Commercial Code may represent a welcome development, but it could face challenges. The evolution of corporate law is a chess game of its own, requiring careful strategies to protect all players' rights, from controlling...