The language of amharic is spoken in the ethiopian government, court system, and on all official documents. Ethiopian ministry of revenues mor is the body responsible for collecting revenue from customs duties and domestic taxes. Apr 30, 2008 a withholding agent required to pay withholding tax must file a withholding tax declaration in the approved form with the payment. On this page you can read or download ethiopian criminal law pdf download amharic in pdf format. The tax to be paid to the tax authority by the employers.
The 1995 ethiopian constitution and the ethiopian national harmful traditional practice strategy have denounced harmful traditional practices that are against. Dont want to miss our interesting news and updates. If the amount of tax shown on a declaration understates the amount of tax required to be shown, the taxpayer is liable for a penalty in the amount of 10% of the understatement or. Ethiopia investment policies and incentives and opportunities. Whereas, the declaration on economic policy of the government of the federal democratic republic of ethiopia inaugurates a new era in social and economic relations and institutions. Valueadded tax vat or goods and services tax gst as termed in some countries has become a major tax instrument in a large number of countries worldwide. Fikadu asfaw and associates law office is a fullfledged corporate and commercial law firm in addis ababa, ethiopia with highly professional attorneys providing legal advice and services to clients throughout the surrounding areas of ethiopia as well as all around the world. Model by law for civil society organizations based on new law new hate speech prevention draft proclamation.
Tax law is a branch of public law that shares the attributes of legality principle. Ethiopian tax system strikes one as random, disorganized, and incoherent in places. Income tax proclamation 782002 income tax regulation no. We are more accustomed to talking if ever about income taxes even then, of specific income taxes, the value added tax, or customs duties than of the ethiopian tax system as a whole. Apr 30, 2008 tax regulations in ethiopia details written by administrator published on 30 april 2008 category. Us imports 40% of ethiopian textile and garment exports uk imports 10% of ethiopias textile and garment exports other european countries import 50%. Whereas, it is believed that modernizing the tax system and broadening the tax base promotes economic growth by encouraging saving and investment. Ethiopian source income except to the extent that it is attributable to. Whereas, the value added tax minimizes the aamage that may be caused by. The amharic version of the constitution has the final authority in the event of conflict between. As important sources of public revenue, taxes are very important part of the daily functioning of a government. In ethiopian income tax law royalty is defined to mean, a payment of any kind received as a consideration for the use of, or. Whereas, in consequence of these developments, the existing system of income tax needs to be changed and adjusted to the basic principles of fiscal treatment in a free market economy. Since the th century is has been the language of the court and dominant population in highland ethiopia.
The direct and indirect taxes applicable in ethiopia fikadu. Unlike the previous excise tax law, the new excise tax proclamation has introduced a list of exempted items and transactions from the reach of the excise tax law regime. Constitution of the federal democratic republic of ethiopia, it is. The law clearly provides the following this proclamation shall apply to residents of ethiopia with respect to their worldwide income. A word or term in these regulations shall have the same meaning that it has in the. Nov 24, 2015 on this page you can read or download ethiopian criminal law amharic pdf in pdf format. Since the jurisprudence of ethiopian taxation is yet to develop fully, this. In this proclamation, the meanings of terms defined in other laws. Different countries apply different rules in order to determine their tax jurisdiction. In addition to raising revenue, the mor is responsible to protect the society from adverse effects of smuggling. It is an important and most significant source of revenue of the government. The 1995 ethiopian constitution and the ethiopian national harmful traditional practice strategy.
Income specifically exempted from income tax by the law in force in ethiopia, by international treaty or by an agreement. Accordingly, this teaching material tries to address, even though briefly, the basic component of tax law, especially in ethiopia. Amharic also known as abyssinian, amarinya, amarigna, and ethiopian is the national language of ethiopia. Legality principle of taxation in ethiopia ssrn papers. A complete and easy access to ethiopian legal information.
Tax this page presents links to guide you on types of taxes, tax rates, exemptions, tax filing procedures and other information you need when you start up a business as a selfemployed person, a partnership or a limited company. However, the amount of income and the corresponding tax rate has been static for more than a decade, despite inflation. If you dont see any interesting for you, use our search form on bottom v. Freedom of mobility in an ethnicbased federal structure. Ethiopian tax laws who is required to pay an income tax in. Accordingly, the material deals with the following. News about ethiopian civil servant salary and experience level. This is direct tax, which a person pays from any income he gets. Direct tax according to proclamation no 28694 any person whose permanent residence is in ethiopian, has to pay tax from the income that he gets within ethiopia or abroad. Severance pay and compensation fikadu and associates law office. C the ministry of finance and economic cooperation mofec has announced this new tax proclamation. Income tax proclamation ethiopian chamber of commerce and.
Equally, the law that obliges adoption agreement to be in written form, parties to appear before court of law and secure approval of the relation, is believed to be mechanical and contrary to. The direct and indirect taxes applicable in ethiopia. The law applies a progressive tax rate, except for corporate tax, which is flat 30%. On this page you can read or download ethiopian criminal law amharic pdf in pdf format. The withholding agent is required to pay the withhold tax to the ministry of revenue within 30 days after the end of the month in which the withholding income was paid. It aims at the prevention of crimes by giving due notice of the crimes and penalties prescribed by law and should this be.
Tax revenue to gdp ratio is very low in ethiopia as compared to some of subsaharan african countries. Income specifically exempted from income tax by the law in force in ethiopia, by international treaty or by an agreement made. Therefore, the user of this guide required to refer to the customs proclamation and other customs related laws and regulations for obtaining legally binding information. Claim of right 1 a taxpayer who is accounting for tax purposes on a cash basis shall treat an amount as received and an outgoing or expense as paid, even though that person is not legally entitled to receive the amount or liable to make the payment, if that person claims to be. Income tax regulation amharic clean resources1 mof.
If the person is not resident of ethiopia gets his income which has its source in ethiopia also should pay tax. By the tax authority, we mean the ethiopian revenues and customs authority erca head office or any of its branch offices established in any part of ethiopia and the tax authorities of the regional state. Amharic version of ethiopian laws, imposes obligation only on tax payers by. In present study an attempt is made to analyze empirically the determinants of tax revenue and assess the response of tax revenue to changes in its. The purpose of the criminal code of the federal democratic republic of ethiopia is to ensure order, peace and the security of the state, its peoples, and inhabitants for the public good. Tax regulations in ethiopia ethiopian business portal.
According to proclamation no 28694 any person whose permanent residence is in ethiopian, has to pay tax from the income that he gets within ethiopia or abroad. Pdf there have been significant social, economic and political changes in ethiopia in recent decades. The 2002 income tax proclamation governs income tax from employment, from rental of buildings and from business. Jul 08, 2016 as of the new budget year, which starts at hamle 2008 e. The ethiopian income tax law uses resident as a defining criteria in order to determine the tax jurisdiction of the country. Ethiopia introduced vat as a replacement to sales tax in the year 2003. In addition, the law has provided circumstances on which a given excisable good will be exempted from payment of excise tax.
199 501 1013 101 663 23 1036 1445 731 1504 684 1207 341 1375 342 131 29 553 819 803 1240 249 783 62 28 159 386 1477 213 1343 44 1482 866 1559 107 905 1247 539 895 250 211 142 943 1090 1350 579 200 488 788