Ethiopia offers a comprehensive set of fiscal and non-fiscal incentives to encourage investment into priority areas, including:
The Ethiopian tax system comprises direct and indirect taxes. Direct taxes include personal income tax, rental tax, withholding tax, and corporation tax, among others. The main types of indirect taxes are VAT, customs duty, excise and turn over taxes. Main taxes are summarized in the table below.
Main Taxes in Ethiopia:
|Type of Taxes||Rate|
|Corporate Income Tax||30%|
|Turn Over Tax||2% and 10%|
|Excise Tax||10% up to 100%|
|Customs Duties||0% up to 35%|
|Income Tax from Employment||0% up to 35%|
|Value Added Tax (VAT)||15%|
|Export Tax||Nil (with exception of hides & skins-150%)|
All land in Ethiopia is considered public property. Individuals, companies and other organizations can, however, acquire the right to use land. There are two broad classifications of land for rent or lease purposes: rural land, mainly used for agricultural purposes, and urban land, mainly used for industrial purposes or other activities. Land lease or rental rates differ from location to location.