Insights
Ethiopia’s Amended Income Tax Proclamation: Implications for Revenue, Professionals, & Investors
The goals of the amendment are typically outlined in the preamble of the proclamation. Therefore, the objectives mentioned in the preamble include: improving revenue collection through adjustments to the rates applied to certain incomes; expanding the tax base; creating an efficient system of tax incentives; and curbing tax avoidance strategies, which encompass restrictions on cash payments.
U.S. International Tax Law in a Coffee Bean
The highlands of Ethiopia are widely regarded as the birthplace of coffee. The story of Ethiopian coffee dates back to around 850 AD, when both Arabica and Robusta coffee are believed to have originated. Today, Ethiopia remains the top coffee producer in Africa, cultivating over 5,000 varieties. Coffee is a major global export for the country, where agriculture remains a key driver of the economy. Ethiopia also ranks first in wheat production and third in maize production across Africa.
Tax Audits in Crisis: Can Ethiopia’s New Directive Restore Trust in the System?
Ethiopia has introduced new tax audits, conducting procedures, and the Assessment Directive No. 1063/2025, marking a significant development in its tax history. Tax audits represent a major challenge within the Ethiopian tax system; the implementation of tax audits contradicts the voluntary compliance expected from taxpayers under the self-declaration tax policy. During these audits, tax auditors often seek additional taxes without a legal foundation, aiming to meet monthly revenue collection targets. This trend significantly harms taxpayers, leading to non-compliance with tax laws and fostering illegal practices.
The National Bank of Ethiopia issued new directives on June 25, 2025, finalizing the opening of the country’s financial sector to foreign players
Directive No. SBB/94/2025 provides a structured regulatory framework for banking operations in Ethiopia. The directive outlines the procedures for licensing and renewing banking businesses and representative offices. Adhering to these guidelines is crucial for maintaining the stability and integrity of the banking sector in Ethiopia.
Regulating Ethiopia’s Shift to Electric Vehicles: A Legal and Institutional Framework
Explore Ethiopia’s transition to electric vehicles with an in-depth look at the legal and institutional framework shaping the shift. Learn about policies, regulations, and challenges in EV adoption.
Significant Adjustments in Administrative Penalty Waivers Under the New Tax Administration Directive
The Ethiopian tax administration has experienced considerable changes with the implementation of Directive Number 889/2025, which supersedes the previous Directive Number 137/2010. This directive brings important modifications in the categorization and waiver of tax administration penalties.
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...