With insights from Africa-focused tax advisers from Baker McKenzie and our network of African hub firms, we aim to provide you with regional updates and practical guidance on the tax implications of doing business across the large and diverse African continent.

In this special edition of the Baker McKenzie Africa Tax Newsletter, we focus on the most recent tax-related developments in Ethiopia as well as other news and updates from the African region.


Ethiopia enacts new excise tax law among other tax changes

The New Excise Tax Proclamation No. 1186/2012 (E.C. 1186/2020) (the New Law), which was enacted on 13 February 2020, has repealed and replaced the former Excise Tax Proclamation No. 307/1995 (E.C. 307/2002) and its amendments, in their entirety. The new law has introduced substantial changes to the rates, base and manner of calculation of the excise tax. Although the excise tax is typically imposed on goods that are considered “luxury, hazardous to health, cause social problems or…are demand inelastic”, the new law surprisingly covers a wide range of products.

A copy of the new law can be viewed here. To view the full article, click here or the Download button below. 

For any queries on tax issues in Ethiopia, please contact Pomy Ketema of Baker McKenzie, New York, or your usual Baker McKenzie contact.


Other Africa Tax News

Angola / Mozambique

COVID-19: Managing the impacts of COVID-19 in Angola and declaration of State of Emergency in Mozambique. 

Contact Samuel Fernandes de Almeida of VdA Legal Partners.

Kenya

Amendments to Income Tax Act, Cap 47 of the Laws of Kenya; Value Added Tax, 2013; and Excise Duty, 2015; plus notable tax decisions. View here.

Contact Kenneth Njuguna and George Gitau of Anjarwalla & Khanna.

South Africa

COVID-19:Assistance to small businesses and employees through the tax system and introduction of new export control regulations.

Contact Virusha Subban and Jana Botha of Baker McKenzie, Johannesburg.

Tanzania

Amendments to Income Tax Act, 2004; Value Added Tax Act; Excise (Management and Tariff) Act; and Tax Administration Act, 2015. View here.

Contact Kenneth Njuguna and George Gitau of Anjarwalla & Khanna.

Tunisia

COVID-19: Financial and fiscal measures by the Ministry of Finance and postponement of payment of credit maturities.

Contact Omar Besbes and Khalil Laabidi of United Advisers.

Uganda

2019 amendments to tax legislations and recent Court of Appeal ruling in Airtel Uganda Ltd V Commissioner General Uganda Revenue Authority. View here.

Contact Fiona Magona and Flavia Suubo of MMAKS Advocates.


To speak to us in relation to any tax issues in the Middle East and Africa, please feel free to contact one of the lawyers below.

Author

Reggie Mezu is a Senior Special Counsel in Baker McKenzie Habib Al Mulla, based in Dubai. He has practiced tax for nearly 30 years in the Middle East, Africa and Europe, including in the UAE for 15 years. Reggie regularly advises clients on tax planning, corporate structuring, cross-border transactions, double tax treaties, reform and development of fiscal frameworks, general advice, and most recently, the new value added tax (VAT) regime in the Gulf region.

Author

Virusha Subban is a partner and head of Indirect Tax in Baker McKenzie's Tax Practice Group in Johannesburg. She has over 20 years of experience in tax issues relating to customs and excise and international trade. Her expertise extends to all customs-related risks in the context of cross-border transactions in Africa. She also conducts customs reviews and health checks and provides training to companies that wish to avert customs and excise risk.

Author

Pomy Ketema is counsel in Baker McKenzie's Tax Practice Group based in New York. With two decades of experience as a tax practitioner, Pomy focuses on the tax aspects of domestic and cross-border acquisitions, divestitures and joint ventures, and also assists clients with general U.S. corporate and partnership tax planning and controversies. As a member of the Firm's Africa Tax Group, Pomy assists clients with Ethiopian tax matters, working closely with local tax specialists at independent firms to provide clients with the legal support that they need in the region.

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