Ethiopian government has dropped plan to tax dividends which remain undistributed to shareholders. Tax on dividends should only be paid after part of the net earnings are paid to shareholders, Sufian Ahmed, Minister of Finance & Economic Development, said reassuring the business community attending the annual Public-Private Dialog, held at the UNECA, on Thursday, June 27, 2013.

Previous the Ethiopian Revenues & Customs Authority has insisted on the legality of the tax on reinvested dividends. The Authority has also demanded payment of arrears up to five years of reinvested dividends.

Ethiopia’s tax law of 2002 levies a 10 percent tax on dividends.

Source: Fortune