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Ethiopia - Apply for Investment Incentives

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Contents

Introduction

One of the steps taken by the government to enhance Investment in Ethiopia is the provision of investment incentives. This procedure contains steps to follow to be taken in order to be Exempted from income tax under its amendment Regulation No. 146/2008 or 146/2000 EC for investment incentives as laid out by the Council of Ministers in Ethiopia. The Ethiopian Government provides investment incentives.

Eligibility

All foreign investors who plans to engage in Investment in Ethiopia,or a domestic one or a partnership of foreign and domestic investors are Eligible for Investment Incentives.

Investment Activities Eligible for Income Tax Exemption

1. Where an investor engaged in manufacturing or agro-industrial activities,or investment areas of information and communication technology development or the production of agricultural products to be determined by directives to be issued by the Investment Board;

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Instructions

All Companies must apply for investment permit with Ethiopian investment Agency, and be familiar with the rules relating to the filing of investment permit and how the charges is calculated.The registration to get a investment incentives generally involves a few minutes.

Required Information

  • Name of Taxpayer
  • Taxpayer Identification Number
  • Business Name or Trade Name of Taxpayer
  • Status
  • Bank Details
  • Name of Bank
  • Bank branch
  • Account Number
  • proposed Type of Business

Procedure

As per the Investment Proclamation No.280/2002 (as amended), a foreign investor or a domestic investor who is eligible for and wants to get incentives, is required to obtain an investment permit first.

Take the following steps.
Step 1
  • Apply for investment permit.
Step 11
  • Fill the application for incentives with the Ethiopian Investment Agency prior to commencement of work on the project
Step 111
  • The Ethiopian investment Authority will provide for a professional evaluation of the project (two standpoints) within three months after accepting the application for incentives.
Step IV
  • The the Ethiopian Investment Agency issues a decision on granting the incentives to the project, if the investor engages in manufacturing of the the following projects
  • ago-Industrial activities or
  • invest in areas of information and communication technology development or
  • production of agricultural products
Step V
  • The income tax exemption under the provisions of the above lists shall be effective when the investor provides the information for the relevant revenue collecting institution and its validity is ascertained for each income tax period.
Note
  • Under special circumstances, grant income tax exemption for a period not longer than 7 years. However, the granting of income tax exemption for a period longer than 7 years requires the decision of the Council of Ministers.
  • An investor who has incurred loss within the period of income tax exemption shall be allowed to carry forward his/her loss for half of the income tax exemption period, after the expiry of such period.

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Required Documents

  • The registration requirements are as follows:
  • A copy of certificate of incorporation.
  • List of staff and their annual salaries.
  • The Directors’ Tax Clearance Certificates (now Electronic Tax Clearance Certificate)
  • Letter of application for registration of Business.

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Fees

Explain the fees structure which is required for obtaining the certificate/document.

Validity

Valid for 5 years

Documents to Use

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Sample Documents

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Processing Time

Processing is within 30 working days.

Office Locations & Contacts

Ethiopian Investment Agency

Tel. +251-115- 51 00 33

Tel. +251-115- 53 72 86

Fax: +251-115- 51 43 96

P.O.Box 2313, Addis Ababa, Ethiopia

Email: ethioinvest@eia.gov.et


Office of Director General

Office Tel +251-115 51 00 33

Office Tel +251-115 53 94 74

Fax: +251-115- 51 43 96 .


Ethiopian Investment Commission.

Tel:(251-0011)5514396,

P.O.Box2313,AddisAbaba,Ethiopia

E-mail:ethioinvest@eia.gov.et,

Website : http://www.eia.gov.et

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Video

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type="website">video ID|width|height<&/video&> from external websites.
Please remove the "&" inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Information which might help

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Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

http://www.2merkato.com

http://www.ethioembassy.org.uk/trade

http://www.mot.gov.et

http://www.addischamber.com/index.php?subPageName=InvestmentIncentives

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