Ethiopian tax law in amharic pdf

Amharic also known as abyssinian, amarinya, amarigna, and ethiopian is the national language of ethiopia. 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. Whereas, the value added tax minimizes the aamage that may be caused by. A complete and easy access to ethiopian legal information. However, the amount of income and the corresponding tax rate has been static for more than a decade, despite inflation. A word or term in these regulations shall have the same meaning that it has in the. Legality principle of taxation in ethiopia ssrn papers.

Income tax proclamation 782002 income tax regulation no. Income tax regulation amharic clean resources1 mof. Severance pay and compensation fikadu and associates law office. Ethiopian tax laws who is required to pay an income tax in. Ethiopian ministry of revenues mor is the body responsible for collecting revenue from customs duties and domestic taxes. Accordingly, the material deals with the following. Nov 24, 2015 on this page you can read or download ethiopian criminal law amharic pdf in pdf format. Model by law for civil society organizations based on new law new hate speech prevention draft proclamation. Income tax proclamation ethiopian chamber of commerce and. In addition to raising revenue, the mor is responsible to protect the society from adverse effects of smuggling.

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. In ethiopian income tax law royalty is defined to mean, a payment of any kind received as a consideration for the use of, or. 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. It aims at the prevention of crimes by giving due notice of the crimes and penalties prescribed by law and should this be. Dont want to miss our interesting news and updates.

Apr 30, 2008 a withholding agent required to pay withholding tax must file a withholding tax declaration in the approved form with the payment. It is an important and most significant source of revenue of the government. Whereas, it is believed that modernizing the tax system and broadening the tax base promotes economic growth by encouraging saving and investment. On this page you can read or download ethiopian criminal law amharic pdf in pdf format. Ethiopian tax system strikes one as random, disorganized, and incoherent in places. Apr 30, 2008 tax regulations in ethiopia details written by administrator published on 30 april 2008 category.

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. The 1995 ethiopian constitution and the ethiopian national harmful traditional practice strategy. Since the jurisprudence of ethiopian taxation is yet to develop fully, this. 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. Income specifically exempted from income tax by the law in force in ethiopia, by international treaty or by an agreement made. Freedom of mobility in an ethnicbased federal structure. The law clearly provides the following this proclamation shall apply to residents of ethiopia with respect to their worldwide income. Ethiopian source income except to the extent that it is attributable to. The ethiopian income tax law uses resident as a defining criteria in order to determine the tax jurisdiction of the country. News about ethiopian civil servant salary and experience level. Tax regulations in ethiopia details written by administrator published on 30 april 2008 category. C the ministry of finance and economic cooperation mofec has announced this new tax proclamation. Ethiopia investment policies and incentives and opportunities.

Constitution of the federal democratic republic of ethiopia, it is. 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. The language of amharic is spoken in the ethiopian government, court system, and on all official documents. As important sources of public revenue, taxes are very important part of the daily functioning of a government. 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. 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 tax to be paid to the tax authority by the employers.

If you dont see any interesting for you, use our search form on bottom v. Ethiopia introduced vat as a replacement to sales tax in the year 2003. The direct and indirect taxes applicable in ethiopia fikadu. Tax regulations in ethiopia ethiopian business portal. 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. 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. Us imports 40% of ethiopian textile and garment exports uk imports 10% of ethiopias textile and garment exports other european countries import 50%. In this proclamation, the meanings of terms defined in other laws. 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. Income specifically exempted from income tax by the law in force in ethiopia, by international treaty or by an agreement.

The law applies a progressive tax rate, except for corporate tax, which is flat 30%. The amharic version of the constitution has the final authority in the event of conflict between the english. 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. Jul 08, 2016 as of the new budget year, which starts at hamle 2008 e. Accordingly, this teaching material tries to address, even though briefly, the basic component of tax law, especially in ethiopia. 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. 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.

Amharic version of ethiopian laws, imposes obligation only on tax payers by. The amharic version of the constitution has the final authority in the event of conflict between. If the person is not resident of ethiopia gets his income which has its source in ethiopia also should pay tax. Different countries apply different rules in order to determine their tax jurisdiction. Pdf there have been significant social, economic and political changes in ethiopia in recent decades. The new income tax in ethiopia new income tax calculations. On this page you can read or download ethiopian criminal law pdf download amharic in pdf format. This is direct tax, which a person pays from any income he gets. In addition, the law has provided circumstances on which a given excisable good will be exempted from payment of excise tax.

The 2002 income tax proclamation governs income tax from employment, from rental of buildings and from business. Tax law is a branch of public law that shares the attributes of legality principle. Tax revenue to gdp ratio is very low in ethiopia as compared to some of subsaharan african countries. The 1995 ethiopian constitution and the ethiopian national harmful traditional practice strategy have denounced harmful traditional practices that are against. If the person was present for 183 days in ethiopia within 12 months permanently or other way, the law regards him as an ethiopian resident and imposes. 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. 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. Since the th century is has been the language of the court and dominant population in highland ethiopia. 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. This guide provides vital information on ethiopian tax law and practice and is not intended to substitute professional advice given with full knowledge of the specific circumstances of each case and proficiency in the law of ethiopia such as might be provided by a tax attorney or tax lawyer in ethiopia.