- 1 What does Ethiopia Revenue and Custom Authority do?
- 2 What is tax administration in Ethiopia?
- 3 What type of tax system that Ethiopia follows?
- 4 When did taxation start in Ethiopia?
- 5 What is custom duty in Ethiopia?
- 6 How can I get TIN number in Ethiopia?
- 7 What is turnover tax in Ethiopia?
- 8 What triggers the introduction of VAT in Ethiopia?
- 9 What are the challenges of taxation in Ethiopia?
- 10 What is the purpose of taxation in Ethiopia?
- 11 How is turnover tax calculated in Ethiopia?
- 12 What are the tax declaration period in Ethiopia?
- 13 What is the origin of taxation?
- 14 What are the major principles of taxation?
- 15 When was taxation first introduced?
What does Ethiopia Revenue and Custom Authority do?
The Ethiopian Revenues and Customs Authority (ERCA) is the body responsible for collecting revenue from customs duties and domestic taxes. In addition to raising revenue, the ERCA is responsible to protect the society from adverse effects of smuggling.
What is tax administration in Ethiopia?
In Ethiopia, the responsibility to collect revenue for the Federal Government rests with the Ethiopian Revenue and Custom Authority (hereafter cited as the ERCA). And there are different tax administrators at each sub city, which Nifas Silk Lafto sub city is the one.
What type of tax system that Ethiopia follows?
The federal tax system Ethiopia has a federal tax system, with tax powers and revenues divided between the federal government and the regional states.
When did taxation start in Ethiopia?
income tax. This was officially introduced to Ethiopia in 1943, although from 1941 to 1943 the income tax policy systematized by the Italians had been in operation. The present income tax system is based on a series of schedules.
What is custom duty in Ethiopia?
The rate of customs duty ranges from 0% to 35% with an average rate of 17 percent. In recent years, Ethiopia has reduced customs duties on a wide range of imports, including the removal of tariffs on agricultural equipment, but duties still remain high on certain items, such as vehicles.
How can I get TIN number in Ethiopia?
- You should start by visiting Ethiopia Revenue and Customs Authority (ERCA) for registration.
- Obtain the application form from the ECRA officials and complete them.
- Submit the duly filled application form with proof of identity.
What is turnover tax in Ethiopia?
Turnover tax is charged under the Turnover Tax Proclamation at a rate of 2% on the supply of goods and services relating to contractors, grain mills, tractors and combine harvesters and at a rate of 10% on other services. Turnover tax is payable on goods and services supplied by persons who are not registered for VAT.
What triggers the introduction of VAT in Ethiopia?
Ethiopia introduced value added tax ( VAT ) in the year 2003 as a replacement to sales tax. This may be caused by factors including poor VAT administration, i.e., the incapacity of tax authorities to implement the attributes of the tax in practice.
What are the challenges of taxation in Ethiopia?
The descriptive statistics reveal that the following issues were major challenges for presumptive tax collection in Ethiopia: lack of equity and fairness in presumptive tax assessment; complexity of tax rules; taxpayers’ poor perceptions of tax evasion; the existence of unethical and corrupt tax officials; taxpayers’
What is the purpose of taxation in Ethiopia?
Taxation is the main source of development finance in most countries. In Ethiopia domestic revenues were more than three times as large as total budget aid in 2010, making it the only real candidate for sustainable development financing in a long-term exit strategy from aid dependency.
How is turnover tax calculated in Ethiopia?
The Turnover Tax shall be: 1) 2% (two percent) on Goods sold locally 2) for Services rendered locally; (a) 2% (two percent) on Contractors, grain mills, tractors and combine-harvesters; (b) 10% (ten percent) on others. 5. Hence, the seller is principally accountable for the payment of the tax.
What are the tax declaration period in Ethiopia?
An employee with more than one employer is required to file for declaration within 30 days from the end of every three month. Such employees must pay the due taxes every 3 month. A Category “A” or “B” taxpayer should file a tax declaration within 4 months or 2 months from the end of the tax year, respectively.
What is the origin of taxation?
Brief History of Income Tax in India: In India, this tax was introduced for the first time in 1860, by Sir James Wilson in order to meet the losses sustained by the Government on account of the Military Mutiny of 1857. The Income Tax Act 1961 has been brought into force with 1 April 1962.
What are the major principles of taxation?
The principles of good taxation were formulated many years ago. In The Wealth of Nations (1776), Adam Smith argued that taxation should follow the four principles of fairness, certainty, convenience and efficiency.
When was taxation first introduced?
The first known taxation took place in Ancient Egypt around 3000–2800 BC. Most countries have a tax system in place to pay for public, common, or agreed national needs and government functions. Some levy a flat percentage rate of taxation on personal annual income, but most scale taxes based on annual income amounts.