Economy

Addis Ababa Moves Annual Tax Filing Online, Revises Audit

BirrMetrics · 4 hours ago · Read the Full Story on BirrMetrics
Addis Ababa Moves Annual Tax Filing Online, Revises Audit
AI SUMMARY

Addis Ababa introduced online annual tax filing and revised its audit guidelines to prevent non-commercial bank deposits, loans, and informal savings from being automatically taxed as business income.

  • The Addis Ababa Revenues Bureau announced online annual tax filing starting October 27, allowing businesses to submit records and settle obligations remotely.
  • The changes take effect from the 2026/27 Ethiopian fiscal year as part of an overhaul to address taxpayer complaints and reduce administrative requirements.
  • Mikiyan Mulugeta, deputy head of the bureau's tax division, stated that reforms have been implemented over the past two years to resolve tax assessment disputes.
  • The annual filing system builds upon the online monthly VAT and employment income tax declarations introduced for Category A taxpayers in 2025/26.
  • Revised desk audit guidelines allow money received through loans, inheritance, gifts, and equb to be distinguished from business revenue upon providing documentation.
  • Taxpayers are instructed to separately maintain bank accounts used for business transactions from those used for personal savings.
  • London Tessema of the tax audit directorate stated the bureau is introducing standardised procedures to clarify audit requirements.
  • Taye Masresha, director of tax assessment and collection, noted the systems are designed to limit direct interactions with tax administrators and reduce office visits.
  • Category A taxpayers must submit annual tax declarations and payments without penalties through the online platform by November 9, 2026.