Ethiopian’s Investment Code provides incentives for development related investments, reduces capital entry requirements for joint ventures , permits the duty free entry of capital goods ( except computers and vehicles), opens the real estate sector to expatriate investors, extends the losses carried forward provision, cuts the capital gains tax from 40% -10% and gives priority to investors in obtaining land for lease.
Accordingly, the exclusive right to generate and supply electricity other than from hydropower, above 25 megawatts, air transport service using aircraft with a seating capacity of more than 20 passengers or with a cargo capacity greater than 2700 kms, rail transport services or telecommunication services including the internet only in partnership with the government are the sectors that are reserved for the government of Ethiopia.
Foreign investment in Ethiopia
A foreign investor is allowed to invest in all areas of investment except those reserved for the government, Ethiopian nationals and other domestic investors. Foreign investment in Ethiopia is regulated as described in proclamation number 280/2002.
According to this proclamation a foreign investor who intends to invest on his /her own, except in consultancy services and publishing is requires investing not less than USD 100,000 in cash and/or in kind as an initial investment capital per project. The minimum capital regard of a wholly foreign investor investing in consultancy, Services or publishing USD 50,000 which may be in cash and/or in kind. a foreign investor reinvesting his/her profit or dividends or exporting 75% of his /her out puts ,however, is not required to allocate minimum capital .
Any pertinent information about investment in Ethiopia, tax in Ethiopia, can be available from an Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian, Ethiopian Employment Layer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.
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