Income Tax Holiday
Any income derived from an approved new manufacturing and agro-industry investment or investment made in agriculture shall be exempted from the payment of income tax for the periods ranging between 2 to 8 years depending upon the area of investment, the volume of export, and the location in which the investment is undertaken.
Customs Import Duty
- 100% exemption from the payment of import customs duties and other taxes levied on imports is granted to an investor to import all investment capital goods as well as spare parts worth up to 15% of the value of the imported investment capital goods.
- Investment capital goods imported without the payment of import customs duties and other taxes levied on imports may be transferred to other investor enjoying similar privileges.
- Exemptions from customs duties or other taxes levied on imports are granted for raw materials necessary for the production of export goods.
Exemption from Payment of Export Customs Duties
- Ethiopian products and services destined for export are exempted from the payment of any export tax and other taxes levied on exports.
Loss Carried Forward
Business enterprises that suffer losses during the tax holiday period can carry forward such losses for half of the income tax exemption period following the expiry of the exemption period.