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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 It contains a subject index and a guide to repealed laws.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and lastly the recent proclamation establishing the Authority, Proc 587 Ethiopia Revenues and Customs Authority  has repealed all previous legislations.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

About Abrham Yohannes

Abrham Yohannes Hailu Licensed Lawyer & Consultant

Discussion

36 thoughts on “Ethiopian Tax and Customs Laws

  1. Please provide me the link for list of import duty for Motorcycle, asap.

    Like

    Posted by Tabish | May 26, 2016, 9:14 am
  2. How can I get an information about the rule making and adjudication process of e.r.c.a??

    Like

    Posted by sisay | May 8, 2016, 2:06 pm
  3. Is there tax audit directive in the federa income and custom autority

    Like

    Posted by endris | October 2, 2015, 4:12 pm
  4. im planing to start soap and lotion making hre in ethiopia but im importing raw materals and machine from out side
    for example if the cost of raw materal is $3000 and machine $ 10000 how much is the tax for this
    thanks

    Like

    Posted by ibrahim | September 24, 2015, 2:57 pm
  5. for example if the total cost of raw materal is 2000$ and the cost of the machine is 50,000 $ therefore how is the tax this item if im buying from kenya
    thank you

    Like

    Posted by ibrahim | September 22, 2015, 7:41 pm
  6. helow im planing to start laudary soap and cosmetic making businss hre in ethiopia
    my question is how much is tax for raw material that i import frm out side and machine for making soap and cosmetic
    thank you

    Like

    Posted by ibrahim | September 22, 2015, 5:46 pm
  7. i want to import cleaning goods like dettol hand wash,dettol shower jell,dettol bar soap,dettol liquid soap how mach is tax for this goods

    Like

    Posted by mubarek | August 13, 2015, 6:28 am
  8. Hi i have 1984 volvo model (b9m-60) buss and i want to import it how mach is the tax thankes

    Like

    Posted by elshaday dereje girma | July 1, 2015, 4:22 pm
  9. Hi I have 2012 suv rav4 4wd so how much tax for that? Thanks

    Like

    Posted by mekdes | April 29, 2015, 10:43 am
  10. hi abrish realy really i appreciat u.please attach by this e-mail recent tax and customs documents

    Like

    Posted by seid hussen | April 8, 2015, 2:26 pm
  11. it is said that customs proclamation number 622/2009 is repealed and substituted by other proclamation. can you say something. if implemented , how can get the full version.

    thanks

    Like

    Posted by Temesgen Teklay | January 9, 2015, 10:46 am
  12. I have no any word to appreciate u Abrsh !!! i have a lot of questions about the Ethiopian Import and export tax proclamations,directives e.t.c if u can help me.one of my questions is in case of import ,dose the CD price (the duty valuation method Ethiopia practicing now) has any relation with the customs duty valuation methods described on the proclamation to determine the duty paying value ? what about invoice price?

    Like

    Posted by bersabeh | November 20, 2014, 8:26 am
    • The tax authority has usually ignored the invoices presented by importers due to understatement of the real price. Instead, it relies on CD prices. The CD is used to determine the custom value of goods.

      Like

      Posted by zerihun | November 25, 2014, 8:50 am
  13. I want to import used car which worth $4724. So could you please tell me how much duty I will be requested?

    Like

    Posted by Minasie Mekbib | November 10, 2014, 10:35 am
  14. I want to emport used cars from abrod, Would u tell me the current Tax schedual .
    I appritiot your resppons.

    Nega

    Like

    Posted by Nega | October 23, 2014, 3:44 pm
  15. I want import olive oil and I want know about import tax

    Like

    Posted by yidenekahew | October 15, 2014, 8:42 am
  16. I want to know about government voucher witch is vat did-acted by the government

    Like

    Posted by mebrat hundessa | October 7, 2014, 8:23 am
  17. i want to buy the machinery from china name the machine is hose crimping machine model DX68 the price is 1798 dollar how mach is tax for this machine

    Like

    Posted by abinet | July 30, 2014, 5:49 pm
  18. Thank you VERY MUCH!

    Like

    Posted by Biniyam | June 24, 2014, 1:17 pm
  19. your consolidated presentation has helped me a lot. betam amesegnalehu

    Like

    Posted by minas | June 7, 2014, 12:23 pm
  20. hi. excellence. can u tell about application of Withholding tax (2%) in transporting goods from one place to another by transroting service enterprises ? shall they be paid ? what is legal bases ?

    Like

    Posted by arefayne wodajo | April 23, 2014, 1:44 pm
  21. I like your comments and thank for sharing the legislations, especially pre 1995.

    Like

    Posted by G ebru Mahitem | February 24, 2014, 11:41 am
  22. I would like to know the agrement between regional goverment, eg somali regional state and FRCA

    Like

    Posted by mohamud | January 13, 2014, 4:17 pm
  23. Thanks very much
    Keep it up also try to include some cases practically happened

    Like

    Posted by yonastamiru | October 3, 2013, 10:09 am
  24. Very nice explanation about laws and regulations in Ethiopia.it would be nice if u focus not only about laws and regulations but also some actual cases about commercial code.
    Any way many thanks

    Like

    Posted by yonastamiru | October 3, 2013, 10:05 am
  25. i like it

    Like

    Posted by wondish | September 9, 2013, 12:16 pm
  26. i like the way you do to sher all of us but i am very sori bay the custem in DERDAWA bay making me kerezi abawet importing goodes may be the lowe workes in addis only i can’t worke may worke propely so i need same body to helpe me plise

    Like

    Posted by TOFIK MOHAMMED | April 29, 2013, 9:01 pm
  27. Crucial website !

    Like

    Posted by Hamdyihun | January 31, 2013, 8:08 am
  28. great work

    Like

    Posted by temesgen | November 19, 2012, 9:23 am
  29. YOU ARE TOO PROFESSIONAL.WE NEED MANY MORE LIKE YOU .GOD BLESS YOU.THIS SITE IS MORE THAN HELPFUL.THANK YOU

    Like

    Posted by Misrak | July 14, 2012, 4:41 am
  30. MR Abrham this site of you is a wonderfull bag of information. I think all lawyers with int’t access looks at it at least once a day. Keep it up!

    Like

    Posted by Kebebew Birhanu | July 13, 2012, 7:35 am
  31. Thanx! keep it up!

    Like

    Posted by Getachew | June 27, 2012, 12:29 pm
  32. Hi,
    This is increadible. In a country like ours, sharing valuable documents to users/interested groups is so wonderful and unbelievable. hope others will learn a lot from this site.
    Keep it up!

    Like

    Posted by Girma | March 15, 2012, 12:22 pm
  33. Mr Abrham,ur site is vital to us all,lawers,b\c in our country there is no adequate means to know replead and enacted laws.so please keep it up.

    Like

    Posted by getachew merkebu | January 16, 2012, 6:57 am

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