Authorities are collecting a 3% social welfare levy on imported goods.   It was back in August 2022 that a new social welfare levy was introduced by the government through the Social Welfare Levy on Imported Goods Regulation No. 519/2022. With a 3% rate, the social welfare levy applies to all goods imported into Ethiopia...Read More

Is the Declaration of Bankruptcy a Mandatory Requirement to Terminate an Employment Contract due to a Reduction in Work Volume or Profit? The Labor Proclamation No. 1165/2019 provides conditions under which an employer may terminate a worker’s employment contract with prior notice. Article 28(3) of the Proclamation, specifically, stipulates that those grounds attributable to the...Read More

Legal Update- Civil Society Organizations’ Income-Generating Activity Directive No. 937/2022 PDF Version Available Here Civil Society Organizations (CSOs) undertake their activities primarily from the donations they receive from domestic/foreign organizations and individuals. But donation is not reliable and donated funds may not always be sufficient to carry out their objectives. Thus, it is crucial to...Read More

Legal Update on the Mergers, Divisions, Conversions, and Dissolutions of Civil Society Organizations Directive No. 936/2022 PDF Version Available Here Purpose: Directive No 936/2022 on the Mergers, Divisions, Conversions, and Dissolutions of Organization came into effect on 22nd December 2022 with the main aim of implementing the provisions of the Organizations of Civil Societies Proclamation...Read More

Can a taxpayer present evidence to the tax authority after an Audit has started? Ethiopian tax statutes have not addressed the admissibility of evidence presented to the tax authority (the Ministry of Revenue) once an audit has started. The repealed Financial Bookkeeping Directive No. 152/2019 and the new Directive No. 176/2022 don’t sufficiently cover the...Read More

E-Commerce as Trade Category E-Commerce companies can now register as an “Electronic Platform Operator” (Code 85125) or as an “Electronics Intra Platform Operator” (Code 85126). The Ministry of Innovation and Technology (MInT), along with the Ministry of Trade and Regional Integration, has classified e-commerce as a trading category. It was back in October 2022 that...Read More

The Federal Supreme Court Issued Directive No. 17/2023 on Cassation Bench Appeal Procedures PDF Version Available Here On April 12, 2023, the Federal Supreme Court of Ethiopia issued a new directive (የፌዴራል ጠቅላይ ፍርድ ቤት የሰበር ሥነ-ሥርዓት መመሪያ ቁጥር 17/2015) on the procedures for entertaining appeals before the court’s Cassation Bench. The Directive provides different...Read More

Main Features of the National Digital ID Proclamation No. 1284/2023 PDF Version Available Here A digital ID system has various benefits when it is implemented in a country. Among its benefits, it helps with proper planning of national development, creates an economic transition, ensures good governance, reduces waste of resources, prevents crime, reduces duplication, and...Read More

Draft Mining Proclamation Tabled to the House of Peoples’ Representatives The 19th regular meeting of the Council of Ministers, with consensus, resolved to refer the draft mining proclamation to the House of Peoples’ Representatives on April 10, 2023. The new bill, when enacted, will repeal the Mining Operations Proclamation No. 678/2010 which has been operational...Read More

The Ethiopian Deposit Insurance Fund Becomes Operational After being established in accordance with the Council of Ministers Regulation No. 482/2021, the Ethiopian Deposit Insurance Fund becomes operational upon the appointment of Ato Merga Wakweya as the CEO of the Fund by the Prime Minister as of April 7, 2023. What is the Ethiopian Deposit Insurance...Read More