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.
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.
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...