Tag Archives: Ethiopian revenue and customs authority

Customs proclamation final draft


Customs proclamation Final draft (Amaharic)       DOWNLOAD
Customs proclamation Final draft (English)     DOWNLOAD

This is the final draft customs proclamation. So what is new? Almost everything is new. The part dealing with offences and penalty has significantly eased the harsh punishments of customs proclamation No. 622/2009.
Article 91(1) of the customs proclamation No. 622/2009 crime of contraband i.e. importing or exporting prohibited or restricted goods was punishable with rigorous imprisonment from 7 to 15 years and fine equivalent to the amount of the customs duties and taxes payable on the goods. Additionally, the goods and equipments used in the commission of the offence and the proceeds will be confiscated.
According to the new draft, the punishment is rigorous imprisonment not less than five years and not exceeding 10 years and fine not less than Birr 50,000 and not exceeding Birr 200,000.
The conditions, under which the means of transport could be confiscated, have also been significantly changed. The draft provides that any means of transport used to carry goods liable to forfeiture shall be forfeited to the Government if:
a) the means of transport is constructed, adopted or fitted with a compartment to conceal goods;
b) the owner of the means of transport, being aware of the fact, fails to take appropriate measure to prevent or stop the commission of the act; or
c) if the owner of the means of transport fail to appear after being summoned
In the previous proclamation, punishment for obstruction of customs formalities was a fine of Birr 5,000 up to 10,000 and imprisonment from 3 to 5 years. If the crime is committed by use of force or by an organized group, the punishment extends from five to ten years rigorous imprisonment. According to the new draft, obstruction of customs control entails punishment of simple imprisonment not less than six months and not exceeding one year and fine not less than Birr 5,000 and not exceeding Birr 10,000. In case of use of force or commission of the offence by an organized group, the imprisonment shall extend from one to five years rigorous imprisonment.
The new draft also authorizes the Director General of the Authority to decide that criminal charges not to be instituted where:
1/ the alleged offender cannot follow the proceedings due to old age or chronic disease;
2/ it is believed that the proceeding of the case in court will harm national security or international relations;
3/ instituting proceedings may cause an unbalanced side effect;
4/ the charge has not been instituted in time and thus has lost its relevance;
5/ there are other similar reasons.

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Directive No 46/2007 Issued to Provide for the use of Sales Register Machines


Directive No 46/2007

Issued to Provide for the use of Sales Register Machines

 1.      Issuing Authority

This Directive is issued by the Minister of Revenue pursuant to the power given by Article 22 of the council of Ministers Regulations to provide for the obligatory use of sales Register machines No 139/2007.

PART ONE

GENERAL

 2.      Short Title

This Directive may be cited as the “Directive issued to provide for the use of sales register machines No 46 /2007”.

3.      Definition

    

 In this directive:-

  1. “Machine” Means a sales register machine.
  2. “Machine identification code” means a code that uniquely identifies a machine and is provided by the Authority.
  3. “User” mean a person or body that is obliged to use a sales register machine under the Regulation and this directive.
  4.  “Service Center” means a body registered by the Tax Authority and certified by an accredited Sales Register Supplier to carry out control, maintenance and repair of machines.
  5. “Service person” means an authorized person who performs control, maintenance and repair of sales register machines, on the basis of a contract entered between the service center and the user.
  6. “Fiscal Documents” mean sales receipts, refund receipts, daily sales and periodical summary reports.
  7. “Fiscal Logo” means a graphical symbol which is printed on each machine generated fiscal document.
  8. “Terminal” means a two way data transfer communication device that is connected to the sales register machine and interfaces with the Tax Authority’s server through wireless communication.
  9. “Inspection booklet” means a maintenance and inspection recording booklet that must accompany each machine and bears the unique registration number of the machine.
  10. “Z-report” means a summary sales report printout generated by a sales register machine at the close of each session.
  11. “Regulation” means the Council of Minister’s Regulation to provide for the obligatory use of sales register machines.
  12. Other words and phrases used in this directive shall have the same meaning assigned to them as in the Regulation. Continue reading →

THE LAW OF CORPORATE TAXATION IN ETHIOPIA


THE LAW OF CORPORATE TAXATION IN ETHIOPIA

BERHANE G/MARIAM

ADVISOR: PROFESSOR TILAHUN TESHOME
SUBMITTED TO:
THE SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTERS IN BUSINESS LAWS (LL.M) ADDIS ABABA,

JANUARY 15, 2010
ADDIS ABABA UNIVERSITY SCHOOL OF GRADUATE STUDIES

Abstract
The taxation of business organizations generally falls into two basic models-“Corporate” taxation and “Partnership” taxation. Corporate taxation typically imposes a tax on the income of certain types of business organizations and also taxes the profits distributed to the holders of the
ownership interests. The partnership taxation model, on the other hand, taxes the income derived by the organization directly to the owners whether or not distributed. This Paper assesses the treatment of corporate taxation in the Ethiopian tax law and argues that the corporate tax issues are not properly addressed in a manner that attracts corporate business investment.

Ethiopian Tax and Customs Laws


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

All Directives of Ethiopian Revenue and Customs Authority


52 2003 ከቀረጥና ታክስ ነፃ ወደ አገር ውስጥ ገብተው ከፍተኛ ጉዳት የደረሰባቸው ተሽከርካሪዎችን የቀረጥና ታክስ አከፋፈል ሁኔታ ለመወሰን የወጣ መመሪያ ቁጥር 52 2003

51 2003 የሰራተኞች የውስጥ ዝውውር አፈጻጸም መመሪያ

50 2003 ህገ ወጥ ዕቃዎችን በሚያጓጉዙ የመጓጓዛ ባለቤቶች ላይ ስለሚወሰድ አስተዳደራዊ እርምጃ የወጣ መመሪያ ቁጥር 50 2003

49 2003 በገቢ ግብር አዋጅ ቁጥር 286 1994 መሰረት ለተጨባጭ መረጃ አቅራቢ ስለሚሰጥ ሽልማት የወጣ መመሪያ ቁጥር 49 2003

48 2003 ከአዲስ አበባ የመጡ ሰራተኞች ድልደላ መመሪያ ቁጥር 48 2003

48 2000 የቶምቦላ ወይም ራፍል ፍቃድ መመሪያ ቁጥር 48 2000

46 2002 የጉምሩክ ወንጀሎችን በአስተዳደራዊ ውሳኔ እልባት ለመስጠት የወጣ መመሪያ

41 2002 ቅድሚያ ተሰጥቷቸው የጉምሩክ ስነ ስርዓት የሚፈጸምባቸውን ዕቃዎች ለመወሰን የወጣ መመሪያ

40 2002 ጉምሩክ መጋዘን አስተዳደር

39 2002 ተላላፊ ዕቃዎች ስነ ስርዓት አፈጻጸም መመሪያ (ማሻሻያ)

38 2002 የፖስታ ጥቅል ዕቃዎች የጉምሩክ ስነ ስርዓት አፈጻጸምን ለመወሰን የወጣ መመሪያ

37 2002 እቃዎችን በዋስትና ስለሚለቀቁበት ሁኔታ የዎጣ የአፈፃፀም መመሪያ ቁጥር 37-2002

34 2002 የኢትዮያ ገቢዎችና ጉምሩክ ባለስልጣን የተገልጋዮች ቅሬታና አቤቱታ ማስተናገጃ መመሪያ

33 2001 የጉምሩክ ዲክላራሲዎን አቀራረብን ለመወሰን የወጣ መመሪያ

32 2001 የእቃዎች የስሪት አገር አወሳሰንን ለማስፈጸም የወጣ መመሪያ

31 2001 በምትክነት ስለሚገቡ እቃዎች የወጣ ዝርዝር የአፈጻጸመ መመሪያ

30 2001 የግብር ታክስ የክፍያ ጊዜ ስምምነት የአፈጻጸም መመሪያ

28 2001 የደረሰኝ አያያዝ አጠቃቀምና ቁጥጥር መመሪያ

27 2002 በገዝው ተይዞ ስለሚከፈል የተጨማሪ እሴት ታክስ የወጣ መመሪያ ቁጥር 27 2002

27 2001 በሽያጭ መመዝገቢያ አጠቃቀም ላይ ለሚቀርቡ ጥቆማዎች ወሮታ ስለሚከፈልበት ሁኔታ የወጣ መመሪያ

26 2001 የከፍተኛ ትምህርት የወጪ መጋራት ክፍያ አሰባሰብ አፈጻጸም መመሪያ

25 2001 ለተጨማሪ እሴት ታክስ ስለመመዝገብ የወጣ መመሪያ

24 2001 የተጨማሪ እሴት ታክስ ምዝገባ ሲሰረዝ በእጅ ያለ እቃን ዋጋ ስለማስላትና የተከፈለ ታክስ ስለሚቀናነስበት ሁኔታ የወጣ መመሪያ

23 2001 ለሰብአዊ እርዳታ ስለሚውሉ እቃዎችና አገልግሎቶች የታክስ ነፃ መብት አፈፃፀም የወጣ መመሪያ

22 2001 ከክልል መንግሥታትና ከተማ አስተዳደር ግብር ከፋዮች የሚሰበሰብ የተጨማሪ እሴት ታክስ

21 2001 የገቢ ግብር ነፃ መብቶች አፈጻጸም መመሪያ

20 2001 ቅይጥ አቅርቦት እንዲሁም የካፒታል ግንባታ ሲከናወን የተከፈለን የተጨማሪ እሴት ስለማቀናነስ የወጣ መመሪያ

19 20001 የግብር ታክስና ቀረጥ ግዴታን ስለመወጣት በማረጋገጫነት

19 1997 ለውጭ ገበያ በሚቀርብ ቡና ላይ ለሚከፈለው ተጨማሪ እሴት ታክስ በዋስትና ስለሚያዝ ቫውቸር የወጣ የአፈጻጸም መመሪያ ቁጥር 17 1997

18 2001 በአገር ውስጥ በሚመረቱ ዕቃዎች ላይ ታክስ የሚከፈልበትን ጊዜ ለማስታወቅ የወጣ መመሪያ

17 1996 ካፒታልን ለማሳደግ የዋለ የአክስዮን የትርፍ ድርሻ ከገቢ ግብር ነጻ እንዲሆን የተወሰኑ የስራ መስኮችን ለማስታወቅ የወጣ መመሪያ

16 2001 የተላላፊ እቃዎች የጉምሩከ አፈጻጸም መመሪያ

15 2001 የህገ ወጥ ዕቃዎች መረጃ አሰጣጥ አያያዝና የወሮታ ክፍያዎችን ለመወሰን የወጣ መመሪያ

14 2001 የዕቃ ፍተሻ አፈጻጸም መመሪያ

13 2001 ህገ ወጥ ዕቃዎችን በሚያጓጉዙ የመጓጓዛ ባለቤቶች ላይ ስለሚወሰድ አስተዳደራዊ እርምጃ የወጣ መመሪያ

11 2001 የግብር ከፋይ መለያ ቁጥር አሰጣጥና የአፈጻጸም ስርዓት መመሪያ ቁጥር 11 2001

5 1996 የግብርና ታክስ አስተዳደራዊ መቀጫዎችን ለማንሳት የወጣ መመሪያ

3 1996 ከቀረጥ ነፃ የገቡ ዕቃዎች ለሌላ ወገን በሚተላለፉበት ጊዜ የእርጅና ቅናሽ ስለሚታሰብበት ሁኔታ የወጣ መመሪያ

2 1996 ስለተጨማሪ አሴት ታክስ አፈጻጸም የወጣ መመሪያ

የግብር ታክስ መቀጫዎችን ስለማንሳት ተሻሽሎ የወጣ መመሪያ

የጉምሩክ ዲክላራሲዎን የማይቀርብባቸው እቃዎችብ ለመወሰን የወጣ መመሪያ

የገቢዎችና ጉምሩክ ባለስልጣን የጉምሩክ ጉዳዮች አቤቱታ አጣሪ ቡድን መቋቋሚያና የአሰራር መመሪያ

የወጪ እቃዎች የጉመሩክ አፈፃፀም ማኑዋል

ለተጨማሪ አሴት ታክስ መመዝገብ ሲኖርባቸወ ያልተመዘገቡ ግብር ከፋዮች በታክስ ስርዓቱ እንዲታቀፉ የተዘጋጀ የማትጊያ ስትራቴጂ ትግበራ መመሪያ 2003

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Diplomats_duty_free

የእቃዎች የስሪት አገር አወሳሰንን ለማስፈጸም የወጣ መመሪያ

በገዝው ተይዞ ስለሚከፈል2002

 

 

 

 

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