Legal Updates
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.
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...