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 It contains a subject index and a guide to repealed laws.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and lastly the recent proclamation establishing the Authority, Proc 587 Ethiopia Revenues and Customs Authority has repealed all previous legislations.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
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)
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. 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
Please provide me the link for list of import duty for Motorcycle, asap.
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Posted by Tabish | May 26, 2016, 9:14 amHow can I get an information about the rule making and adjudication process of e.r.c.a??
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Posted by sisay | May 8, 2016, 2:06 pmIs there tax audit directive in the federa income and custom autority
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Posted by endris | October 2, 2015, 4:12 pmim 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
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Posted by ibrahim | September 24, 2015, 2:57 pmfor 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
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Posted by ibrahim | September 22, 2015, 7:41 pmhelow 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
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Posted by ibrahim | September 22, 2015, 5:46 pmi 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
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Posted by mubarek | August 13, 2015, 6:28 amHi i have 1984 volvo model (b9m-60) buss and i want to import it how mach is the tax thankes
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Posted by elshaday dereje girma | July 1, 2015, 4:22 pmHi I have 2012 suv rav4 4wd so how much tax for that? Thanks
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Posted by mekdes | April 29, 2015, 10:43 amhi abrish realy really i appreciat u.please attach by this e-mail recent tax and customs documents
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Posted by seid hussen | April 8, 2015, 2:26 pmit 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
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Posted by Temesgen Teklay | January 9, 2015, 10:46 amI 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?
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Posted by bersabeh | November 20, 2014, 8:26 amThe 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.
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Posted by zerihun | November 25, 2014, 8:50 amI want to import used car which worth $4724. So could you please tell me how much duty I will be requested?
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Posted by Minasie Mekbib | November 10, 2014, 10:35 amI want to emport used cars from abrod, Would u tell me the current Tax schedual .
I appritiot your resppons.
Nega
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Posted by Nega | October 23, 2014, 3:44 pmI want import olive oil and I want know about import tax
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Posted by yidenekahew | October 15, 2014, 8:42 amI want to know about government voucher witch is vat did-acted by the government
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Posted by mebrat hundessa | October 7, 2014, 8:23 ami 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
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Posted by abinet | July 30, 2014, 5:49 pmThank you VERY MUCH!
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Posted by Biniyam | June 24, 2014, 1:17 pmyour consolidated presentation has helped me a lot. betam amesegnalehu
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Posted by minas | June 7, 2014, 12:23 pmhi. 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 ?
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Posted by arefayne wodajo | April 23, 2014, 1:44 pmI like your comments and thank for sharing the legislations, especially pre 1995.
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Posted by G ebru Mahitem | February 24, 2014, 11:41 amI would like to know the agrement between regional goverment, eg somali regional state and FRCA
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Posted by mohamud | January 13, 2014, 4:17 pmThanks very much
Keep it up also try to include some cases practically happened
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Posted by yonastamiru | October 3, 2013, 10:09 amVery 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
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Posted by yonastamiru | October 3, 2013, 10:05 ami like it
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Posted by wondish | September 9, 2013, 12:16 pmi 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
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Posted by TOFIK MOHAMMED | April 29, 2013, 9:01 pmCrucial website !
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Posted by Hamdyihun | January 31, 2013, 8:08 amgreat work
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Posted by temesgen | November 19, 2012, 9:23 amYOU ARE TOO PROFESSIONAL.WE NEED MANY MORE LIKE YOU .GOD BLESS YOU.THIS SITE IS MORE THAN HELPFUL.THANK YOU
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Posted by Misrak | July 14, 2012, 4:41 amMR 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!
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Posted by Kebebew Birhanu | July 13, 2012, 7:35 amThanx! keep it up!
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Posted by Getachew | June 27, 2012, 12:29 pmHi,
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!
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Posted by Girma | March 15, 2012, 12:22 pmMr 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.
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Posted by getachew merkebu | January 16, 2012, 6:57 am