Foreign Investment Incentives and its conditions under Ethiopian law

Are you an investor interested to invest in Ethiopia? Do you want to know aboutForeign Investment Incentives and its conditions listed under Ethiopian Law? Below you find one of them.

 An investor who invests to establish a new enterprise in Ethiopia is entitled to income tax exemption. However, such incentives do not apply for all cases. Below one finds the conditions put for such entitlement.

Income tax exemptions based on areas of investment

A foreign investor who engages in investment in the state of Gambela, Benishangul/Gumuz, Afar except in areas within 15 km right and left of the Awash river, Somali, Guji and Borena zones of the state of Oromia, south Omo zone, Kaffa zone, Sheka, Segen, Bench Maji, Sheka, Dawaro, is entitled to an Income Tax Deduction of 30% for three consecutive years. The income tax exemption period varies from one sector of investment to another.

Income Tax Exemptions Based On Expansion of Investment

A foreign investor expanding or upgrading his existing enterprise in relation to the additional income generated by the expansion of the enterprise is also entitled to income tax exemption.

Income Tax Exemptions Based On Exporting Of Products or Services

A foreign investor who exports or supplies to an exporter as production or service input, as a minimum 60% of the products or services is entitled to income tax exemption for two years.

If an investor, particularly, engaging in an area of manufacturing or information and communication technology development cannot construct his own production building, the income tax exemption incentive will be one year lesser than what is provided in the law.

If you have an additional question or comment please contact us.

Any pertinent information about investment in Ethiopia, tax in Ethiopia, can be available from an Ethiopian Lawyer, Ethiopian Investment Lawyer, Ethiopian Tax lawyer, Ethiopian Employment Lawyer, Ethiopian Labour Relationships Lawyer, Ethiopian Immigration lawyer.