Southern Nation, Nationalities and Peoples’ Regional State Turnover Tax Amendment Proclamation No. 135/2010

Proclamation No. 135/2010

A Proclamation to Amend The Turn over Tax Proclamation


WHERE AS, it has become necessary to amend the Regional Turnover Tax Proclamation No 57/2003 in accordance with Federal  Turn over Tax No 611/2001 and in line with tangible condition of the


NOW, THEREFORE, in accordance with Article 51 of the constitution of the southern Nation Nationalities and peoples it is here by proclaimed as follows.

1. Short Title

This proclamation may be cited as the “Turnover Tax Amendment Proclamation No. 135/2010.

2. Amendment

The Turnover Tax Proclamation No 57/2003 of the Southern, Nations, Nationalities and peoples government here by amended as follows;

1. Article 6 of the proclamation is repealed and replaced by the following new Article 6

6. Obligation to collect and Transfer the Turn over tax

1. A person who sells goods and services has the obligation to collect the Turn over Tax from the buyer and transfer  the same to the Revenue Authority. Hence, the seller is accountable for the payment of the tax.

2. Governmental agencies and non governmental organizations and associations have an obligation to collect and transfer turn over tax to revenue authority when they sell goods and services which are subjects to the tax.

     Hence, the government body or organization is accountable for the payment of tax. The execution of collection of the tax is to be determined by regulation.

Article 10 of the proclamation is repealed and replaced by the following new Article 10.

10. Filing of Turn over Tax Return and payment

  1. Tax payers subjects to Turn over Tax;

a.  Tax payer of category “A” that is not obliged to register to value added tax and involve in mixed transaction shall file a turn over tax return and simultaneously pay to the tax Authority or to financial institution delegated by the revenue Authority or through electronic filing and payment system with in one month after the end of every accounting period.

b. Tax payer of category “ C” who involve in Taxable supply; shall pay the urn over tax with income tax payment annually to the tax Authority or to the financial institution delegated by the revenue Authority in standard system.

c. Every body which involve in mixed supply, as long as the tax is collected from the value of taxable supplies, shall submit the income declaration in the manner show the save.

     d. The tax payer has an obligation to      pay the tax for every accounting period at the time of filing the turn over tax return.

          e. The usage of receipts of collect turn over tax for everybody involved in mixed supply shall be governed by the system established for bodies that are involved in mixed supply and registered for VAT.

  • for the purpose of this Article “ Accounting period” shall mean:

    a. for tax payers classified as category “A” tax payers under the income tax proclamation No 56/2003, but are not required to registered of VAT, the calendar month.

b. for governmental agencies and non governmental organization and associations per month.

c. For category “B” taxpayers who are required to keep records income tax proclamation, each three month period commencing from the first day of Ethiopian fiscal year when approved by the tax authority, the first day of the Gregorian calendar year.

d. For category “C” tax payers who are not required to keep records under Income tax proclamation the fiscal yeas.

3. The phrase “sub Article 1/B of Article 10” in Article 11 of the proclamation is repealed and  replaced by the phrase sub-Article 1/d of Article 10”.

4.Article 21 of the Proclamation is repealed and replaced by the following new Article 21

21. Waived of Penalty.

       1) Administrative penalties may be waived in accordance with directives issued by the tax Authority.

      2). The administrative penalties to be waived in accordance with sub-article(1) of this Article may not include the interest computed in accordance with Article 25 of the proclamation.

with in thirty(30) days” in sub-article (2) of Article 22 of the proclamation.

  6. Sub- article (3) of Article 31 of the proclamation is re-numbered as sub-article (4) and the following new sub-article (3) is added.

   31(3). The Authority’s officer shall be held responsible for any damage caused to a tax payer by delaying, without any good cause, the performance of his/her duty such employee in addition to being held liable for the damages, shall, upon conviction, be punished with imprisonment for a term of not less than one year and not more than two years.

7. Effective Date

      This Proclamation shall enter into force   up on the date of publication in the Debub Negarit Gazeta

Done at Hawassa sep /2010

Shiferaw Shigutie

President, Southern Nations ,Nationalities and Peoples Regional State

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