On 26 April 2020, the Council of Ministers of Ethiopia has adopted a number of economic measures in response to coronavirus outbreak. Following the decision of the Council of Ministers, the Ministry of Finance has issued Directive No.64/2020 setting out the details of the tax measures applicable to businesses. The measures are given below:
- The deadline for paying turn over tax on a quarterly basis is to be postponed by a one-month period.
- The deadline for paying value-added tax (VAT) on a monthly and quarterly basis is to be postponed by a one-month period.
- the relief of tax debts due from 2014 to 2018 have been waived but with a different treatment of different types of taxpayers.
- Taxpayers who declared their tax liability but fail to pay on the due date will be waived from late payment interest and penalty given that they paid the whole tax amount within 30 days as of the date of the decision.
- Under Article 26 of the Income Tax Proclamation No. 979/2016, loss carry-forward will be extended only for two years.
- Ministry of Revenue to expedite VAT returns to support companies with cash flow.
