Economy

Addis Ababa Revenue Bureau Introduces New Tax Procedures for Non-Bookkeeping Taxpayers

The Reporter (Amharic) · 5 hours ago · Read the Full Story on The Reporter (Amharic)

AI SUMMARY

The Addis Ababa Revenue Bureau has unveiled a temporary operational framework for 2018 E.C. allowing certain professionals and taxpayers who do not maintain financial records to be taxed on 65 percent of their total income.

The Addis Ababa City Administration Revenue Bureau introduced a new operational framework for the 2018 E.C. tax reporting period targeting taxpayers who do not maintain financial records.
Eight professional sectors operating under professional licenses without trade licenses will have 65 percent of their total income subjected to taxation.
The temporary system applies exclusively to the 2018 E.C. tax year and requires taxpayers to sign an affidavit committing to maintain financial records for the current fiscal year.
Although the Ministry of Finance is mandated to issue a directive on expense deductions for those failing to submit financial statements, the bureau has temporarily set 35 percent of total income as deductible expenses and 65 percent as taxable based on prior studies.
Taxpayers previously in Categories B and C who were upgraded to Category A under Proclamation 1395/2017 will have their taxes calculated using Category B procedures based on 2017 E.C. data.
Commercial and residential rental income taxpayers who fail to submit financial records will also have 35 percent deducted as expenses and 65 percent taxed.
Ato Biniyam Mikru, head of the bureau, stated that while professional service providers like lawyers face difficulties itemizing expenses and will not be penalized for missing statements this year, they are still legally obligated to keep financial records.
Ato Nebiyu Mikru of the Federal Lawyers Association countered that some lawyers visiting the bureau were nevertheless asked to sign minutes and face a 20 percent penalty for lacking detailed expense lists.

Read the Full Story on The Reporter (Amharic)

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