Insights
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...
The Dream and the Dilemma of Africa’s Single Currency
It is an ambitious plan that sees the African Union (AU) striving to create a single currency for the continent, marking a crucial part of its economic integration strategy. The initiative, crafted within the broader design of the Abuja Treaty of 1991, aspires to pool...
Understanding Tax Obligations in Real Estate Transactions
The real estate industry is growing despite the lack of trust between developers and buyers. Without a comprehensive legal regime, it is primarily governed by contractual arrangements. However, it is possible to shift the economic burden of tax by way of a contractual...