ETHIOPIAN TAX and CUSTOMS LAWS

Ethiopian tax and customs laws is characterized by frequent repeal and amendments. The number of proclamations, regulations and directives makes it to some extent difficult to understand this area of law. In order to make it easy for researchers, business persons and others interested in knowing Ethiopian tax and customs laws I have prepared this compilation. It contains a subject index and a guide to repealed laws. Fortunately, I was able to obtain some statutes enacted before 1995.

Currently, the administration and enforcement of tax and customs laws is centralized under a single agency i.e. Ethiopian Revenue and Customs Authority. The establishment act of the Authority has been amended 4 times and lastly the recent proclamation establishing the Authority, Proc 587 Ethiopia Revenues and Customs Authority  has repealed all previous legislations.

Compared to other administrative agencies in Ethiopia, the Ethiopian Revenue and Customs Authority has a unique (or may be odd) features. This unique feature could be best understood from the constitutional principle of separation of powers perspective. According to article 6 of the establishment proclamation, the Authority is responsible to establish and implement modern revenue assessment and collection system.  It is also empowered to examine goods and means of transport entering into or departing from Ethiopia through customs ports, frontier posts and other customs stations, and ensure that customs formalities are complied with. In addition to such administrative powers it is also given prosecution and investigative powers over tax and customs offenses. The proclamations also instructs the Federal police to organize and deploy police force to prevent criminal offences committed in violation of customs and tax laws. Federal courts are also instructed organize customs and tax divisions that enable efficient enforcement of customs and tax laws. Irrespective of the civil servants proclamation no 515 that regulates employment conditions of civil servants; employees, prosecutors and investigators of the authority are governed by a separate regulation of the Council of Ministers ans Directive of the Authority.  Irrespective of the legal analysis, the real implications of the cumulative powers of the authority in light of the constitutional principle of separation of powers, requires practical research.

Below you will find Ethiopian tax and custom laws arranged in topics and sub-topics. I have made a lot of efforts to make this a complete guide. Please do leave me a message if there is any law not included here.

ETHIOPIAN TAX  and CUSTOMS LAWS

RepealedTax and Customs Laws

DIRECTIVES

ALL DIRECTIVES of ETHIOPIAN REVENUE and CUSTOMS AUTHORITY

TAX DIRECTIVES of MINISTRY of FINANCE and ECONOMIC DEVELOPMENT

pre-1995 STATUTES

(SOURCE:  Foreign Tax Law, Inc. Website: http://www.foreignlaw.com)

AGRICULTURAL INCOME TAX PROCLAMATION NO. 77 of 1976

CAPITAL GAINS TAX PROCLAMATION NO. 108 of1994

INCOME TAX Law Proclamation No. 173 of 1961

MINING TAX PROCLAMATION NO. 53 of 1993

PETROLEUM TAX PROCLAMATION NO.296 of 1986

SALES AND EXCISE TAX PROCLAMATION No.68o of 1993

STAMP TAX PROCLAMATION NO. 334 of 1987

CUSTOMS LAWS

PROCLAMATIONS

Proc No. 622- 2009 Customs Proclamation

Proc No. 249-2001 Export Trade Duty Incentive Scheme Establishment

Proc No. 173-1999 Pre-Shipment Inspection Scheme Establishment

Proc No. 60-1997 The Re-Establishment and Modernization of Customs Authority

Reg No. 108-2004 Customs Clearing Agents

BILATERAL AGREEMENTS

Procl No 540 Agreement on Customs Cooperation

REGULATIONS

Reg No. 2-1996 Customs Tariffs (Amendment)

Reg No. 6-1996 Customs Tariffs Council of Ministers (Amendment)

Reg No. 11- 1996 Customs Tariffs Council of Ministers (Amendment)

Reg No. 24-1997 Customs warehouse License Issuance

Reg No, 25-1997 Customs Tariffs Council of Ministers (Amendment)

Reg No. 37-1998 Freight Forwarding and Ship Agency License

Reg No. 48-1998 Customs Tariffs Council of Ministers (Amendment)

Reg No. 56-1999 Pre-shipment Inspection Service Fees

Reg No. 55-1999 Customs Tariffs Council of Ministers (Amendment)

Reg No. 89-2003 Customs Tariffs Council of Ministers (Amendment)

Reg No. 80-2003 Customs Tariffs Council of Ministers (Amendment)

Reg. 153 Customs Tariffs (Amendment)

TAX LAWS

Reg No 139 Obligatory Use of Sales Register

Reg No. 75-2001 Tax Withholding Scheme Application

SUR- TAX

Reg No. 59-1999 Payment of Sur- Tax on Import Goods

Reg No. 69-2001 Repeal of Sur-Tax on Imported Goods

Reg No. 133 Import Sur-Tax

STAMP DUTY

Proc No. 110-1998 Stamp Duty

Proc No. 612-2008 Stamp Duty (Amendment)

SALES and EXCISE TAX

ProcNo. 610-2008 Excise Tax (Amendment)

Proc 570 Excise Tax (Amendment)

Proc No. 307-2002 Excise Tax Proclamation

Proc No. 228-2001 Sales and Excise Tax (Amendment)

Proc No. 77-1997 Sales and Excise Tax (Amendment)

Proc No. 237-2001 Sales and Excise Tax (Amendment)

Proc No. 149-1999 Sales and Excise Tax (Amendment)

INCOME TAX

Proc No. 608-2008 Income Tax (Amendment)

Proc NO. 286-2002 Income Tax Proclamation

Proc No. 227-2001 Income Tax (Amendment)

Proc No. 36-1996 Income Tax (Amendment)

Reg No. 43-1998 Income Tax (Amendment)

Reg No. 78-2002 Income Tax

TAX ON EXPORT GOODS AND MINING OPERATIONS

Proc No. 23-1996 Mining Income Tax (Amendment)

Proc No. 287-2002 Tax on Coffee Exported from Ethiopia (Amendment)

Proc No. 99-1998 Tax on Coffee Exported from Ethiopia

Proc No. 226-2000 Petroleum Operations Income Tax (Amendment)

Proc 567 Raw and Semi Processed Hides Skins Export Tax

Proc No 543 the revised Export Trade

Reg No. 73-2001 Tax Amendment on Exported Coffee

TURNOVER TAX

Proc No. 308-2002 Turnover Tax

Proc No. 611-2008 Turnover tax (Amendment)

VALUE ADDED TAX

Proc No. 285-2002 Value Added Tax

Proc No.609-2008 Value Added Tax (Amendment)

Reg No. 79-2002 Value Added Tax

TAX ADMINISTRATION , AGENCY STRUCTURE, POWERS, FUNCTIONS and DUTIES

Proc No. 233-2001 Federal Tax Appeal Tribunal Establishment

Proc No. 368-2003 Re-Establishment and modernization of customs Authority

Proc No. 125-1998 The Customs Authority (Amendment)

Proc No. 60-1997 The Re-Establishment and Modernization of Ethiopian Customs Authority

Proc No. 5-1995 Federal Government Revenues Board Establishment

Proc 587 Ethiopia Revenues and Customs Authority

BILATERAL AGREEMENTS

Proc No 508-2006 Agreement between the government of the

Proc No 507-2006 Agreement between the government of Ethiopia and Peoples’ Democratic Republic of Algeria for the Avoidance of Double Taxation

Proc No.479 Agreement between the Government of the Federal Democratic Republic of Ethiopia and the Government of the Republic of South Africa for the Avoidance of Double Taxation

Proc No. 505 Convention between the Government of the Federal Democratic Republic of Ethiopia and the State of Israel for the Avoidance of Double Taxation and Prevention of Fiscal Evasion

Proc No. 480 Agreement between the Government of the Federal Democratic Republic of Ethiopia and the Government of the Republic of Turkey for the Avoidance of Double Taxation

Proc No. 296-2002 Agreement for the Avoidance of Double Tax

Proc No. 249-2001 Export Trade Duty Incentive Scheme Establishment

Proc No. 223-2000 Agreement with the Government of the Russia

Proc No. 95-1998 Convention for the Avoidance of Double Tax

Proc 585 Agreement between the Federal Democratic Republic of Ethiopia and the Czech Republic for the Avoidance of Double Taxation

584 Agreement between the Governments of the Federal Democratic Republic of Ethiopia and the Government of French Republic for the Avoidance of Double Taxation