Economy
Addis Ababa Revenue Bureau Issues Directive for Taxpayers Without Accounting Records
TIKVAH Ethiopia · yesterday · Read the Full Story on TIKVAH Ethiopia
AI SUMMARY
The Addis Ababa City Revenue Bureau has released a transitional administrative directive for taxpayers who cannot maintain formal accounting records for the 2025/26 fiscal year.
- The administrative directive applies exclusively to the 2025/26 fiscal tax year.
- Category A and B taxpayers are legally required to maintain books of accounts under revised proclamations, but a transitional arrangement was introduced following taxpayer grievances.
- Food providers in schools and feeding centers, urban cleaners, solid waste collectors, and landscapers will have their taxes calculated based on Schedule C of Regulation No. 410/2009 upon providing annual payment documents.
- Sheger bread-selling associations will have taxes assessed only on additional business activities identified during field observations.
- Loaders and unloaders, electric utility pole diggers, security associations, and taxi queue controllers will have their taxes calculated based on sector-specific profit margins.
- Professionals operating under professional licenses rather than business licenses will have 35 percent of their total gross income treated as deductible expenses and 65 percent taxed under Schedule C until the Ministry of Finance issues expense guidelines.
- Category A taxpayers with rental income who fail to provide records will have 35 percent deducted as expenses, with tax levied on the remaining 65 percent.
- Category A transport sector taxpayers will receive a 57 percent inflation adjustment for their 2023/24 or 2024/25 figures and declare taxes based on the Category B formula.
- Taxpayers upgraded from Category B or C to Category A under Proclamation No. 1395/2017 will have their 2024/25 tax and profit share calculated using Category B procedures.
- Alternative minimum tax for Category A taxpayers will be determined by comparing liability against 2.5 percent of gross income, applying the higher amount.
- Taxpayers benefiting from this provision must sign a legal affidavit to maintain proper records for the following fiscal year while administrative penalties for document failure remain in effect.
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