The National Bank of Ethiopia (NBE) is reducing the amount of foreign currency earnings surrendered by exporters to the NBE from 70% to 50% and to commercial banks from 20% to 1%. The new amendment allows exporters to retain 40% of their foreign currency earnings for themselves. The Retention and Utilization of Export Earnings and...Read More

Capital gains refer to the profits earned from the sale of business assets such as stocks, bonds, or immovable properties. Capital gains taxation is the process of taxing these gains at different rates depending on the type of asset. “Business asset” is defined to mean any asset held or used in the conduct of a...Read More

The Federal Supreme Court of Ethiopia has ruled that using retained earnings to pay up subscribed capital is not considered reinvestment, but rather debt offsetting. This means that dividends used to pay subscribed capital will be subjected to a 10% tax. The Ministry of Revenue’s ability to retroactively impose taxes on shareholders’ reinvested dividends is...Read More