The House of People's Representatives (HPR) of Ethiopia approved a bill which ratified tax treaties with Switzerland and Luxembourg on May 30, 2023. The treaties aim to avoid double taxation and prevent tax evasion between the three countries.

The bill was approved after thorough discussion on the report and recommendations of the Planning, Budget and Finance Standing Committee of the HPR. The Standing Committee had previously discussed the importance of the draft bill with the Legal Advisor of the Ministry of Finance.

Ethiopia and Luxembourg signed the Double Taxation Agreement (DTA) in June 2021 aiming to develop the economic relationship and enhance the cooperation in tax matters between the two countries. On the other hand, Ethiopia and Switzerland entered the agreement on July 29, 2021.

The DTA) between Switzerland and Ethiopia marked the first time that Switzerland expanded its network of DTAs into Eastern Africa. It is expected to provide legal certainty and a contractual framework for the taxation of income between the two countries.

Source: Fana BC, Ethiopian News Agency, Switzerland State Secretariat for International Finance (SIF)