The first separate draft law on administration tax and a law dealing with the substantive elements of taxes in Ethiopia is expected to be discussed by the federal and regional authorities by the end of October, Addis Fortune reported.

Director General of the Ethiopian Revenue & Customs Authority (ERCA) Beker Shale told Fortune: “We planned to have the final approval of the new law in January 2016.”

The draft Tax Administration Proclamation and Income Tax Proclamation had incorporated changes to the existing law.

Of the changes in the administrative tax, one schedule is added to the existing system; it merges rent form buildings and business income in a single schedule, Schedule B called business income. Thus, rents generated from buildings made for the specific purpose of leasing are separately included in the business income curve.

Schedule C and Schedule D had saw some changes too.

The draft law had also imposes taxes on particular institutions like on non-resident airlines operators. Even if tax is exempted through negotiations, it will be void.

In addition, a number of standard articles had been stipulated for taxation of mining and petroleum operations. It had also included tax on imports and withholding tax on domestic payments that had been replaced by general current payments system.

The draft administrative tax law stipulates for the Tax Appeal Commission to be held responsible for the Ministry of Justice.

Source: Addis Fortune