To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives.

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 with up to 15% of the value of the imported investment capital goods.
Investment capital goods imported with out the payment of import customs duties and other taxes levied on imports may be transferred to another investor enjoying similar privileges
Exemption from customs duties or other taxes levied o imports are granted for raw materials necessary for the production of export goods.

Ethiopia’s products and services destined for export are exempted form the payment of any export tax and other taxes levied on exports.

Business enterprises that have suffered 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.

Corporate Income tax
In Ethiopia, the corporate income tax (tax on profit) is 30 percent

Employment Income tax
Personal income tax is payable as per proclamation No 286/2002 Accordingly, the first Birr 150 of monthly personal income is exempted from payment of income tax. From monthly income of Birr 151 and above, the marginal tax rates range from 10 to 35 peer cent.

Withholding Tax
With holding tax is payable on import of goods and is set at 3% of the same cost, insurance and freight. In the case of organizations, (NGOS) the amount with held is 2 % of the gross amount of payment.

Value Added Tax (VAT)
Value Added tax is levied on businesses whose turnover is over and above Birr 500.00 per year. They are required to pay 15% VAT but export goods and basic services, are all exempted from VAT.

Joint Venture Investment

A foreign investor may team up with a domestic investor or company for a joint venture investment, usually in the form of a partnership of private limited company or share company.

Under the Investment proclamation No 280/2002, a minimum capital of USD 600.000 except in consultancy services and publishing is required from a foreign investor who intends to enter in to a joint venture partnership with a domestic investor.

A foreign investor wishing to invest in partnership with domestic investor/s in areas of engineering, architecture, accounting and auditing services, and publishing is required from a foreign investor who intends to enter into a joint venture partnership with a domestic investor.

A foreign investor wishing to invest n partner ship with domestic investor/s in areas of engineering, architecture, accounting and auditing services, project studies or business and management consultancy services or publishing is required to invest only USD 25,000 per project the foreign partner can satisfy this minimum equity capital either in cash and /or in kind. There is no restriction at all in share ownership in a joint venture.

Ethiopia possesses enormous natural potential resources by virtue of its natural endowment. Its endowment. Its endowments are likely to facilitate and enhance its development in the agricultural, agro-industrial, industrial, mining, construction and tourism sectors.

Ethiopia is exerting efforts to create a more business-friendly atmosphere. Modestly speaking the country has been a destination for investment opportunities with an assured potential for investment fortunes. Ethiopia which is located in the north-eastern part of Africa, popularly known as the Horn is regarded to be a gate way of investment opportunities due to the availability of natural resources, good power supply and communication facilitities, political stability, investor-friendly policies, relatively cheap labor, easy access to markets, incentive bonanza etc. More

Ethiopia offers a wide ranging investment opportunities in the areas of agriculture, agro-industrial processings and manufacturings. The country has excellent climate and fertile soil for the production of variety of crops (bearing up to 146 types of crops) the majority of which are cereals, pulses and oilseeds.

The country also grows cash crops such as coffee, cotton, tobacco, sugar cane, tea, spices, flowers, fruits and vegetables. The variety of fruits and vegetables the country grows include:- citrus, mango, banana, papaya, avocado, grapes, cabbages, cauliflower, eggplant, tomato, cucumbers, pepper onion, garlic, water melon, carrots, beetroots, and green beans etc… More

Some of the country’s investment objectives include:-
- Exploiting the country’s natural potential for development
- Enhance the country’s development endeavor
- Promote the capacity and quality of production, productivity and service renderings to reap better and reasonable
    amount of foreign earnings and to minimize or save the out flow of foreign currency by producing some of
    the commodities and machineries the country used to import previously

The government of the FDRE is well aware of the crucial importance of infrastructure necessities to attract foreign direct investment in to the country. Besides, facilitating quality infrastructure services in primary for efficient operations of the private sector and enables to take role in the global market there by attracting foreign direct investment. Hence, the Ethiopian government has been and still is trying its level best to attain its infrastructure development programmes in the fields of energy, roads and telecommunication sectors. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More

To facilitate the promotion of private investment, to enhance the inflow of foreign capital and technology in to the country, the Ethiopian Investment Commission grants the following incentives to both domestic and foreign investors engaged in areas eligible for investment incentives. More