Economy
Addis Ababa Introduces New Tax Assessment Rules for Professionals
BirrMetrics · 4 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The Addis Ababa Revenue Bureau has introduced a new tax assessment framework for professionals operating with only a professional license for the 2025/2026 tax year.
- The Addis Ababa City Administration Revenue Bureau has introduced new tax rules for professionals operating with only a professional license and no business license for the 2025/2026 tax year.
- The regulations apply to lawyers, insurance agents, insurance loss assessors, and similar professions.
- Professionals who fail to submit accounting records will be taxed using a fixed formula where 35 percent of total income is treated as expenses and 65 percent as taxable income.
- The directive aims to close long-standing gaps, strengthen legal compliance, and curb tax evasion in the professional services sector.
- Many practitioners in the sector operate independently without formal business structures and handle transactions in cash, making income tracking difficult.
- The new framework is intended strictly for the 2025/2026 tax year, after which the Bureau plans to introduce corrective measures and record-keeping mandates.
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