Addis Ababa Revenue Bureau Issues New Tax Implementation Directives

The Addis Ababa Revenue Bureau has unveiled new desk audit guidelines for the 2018 fiscal year to streamline tax collection. A key directive limits cash transactions to a maximum of 50,000 Birr per person per day; exceeding this limit results in the denial of expense deductions and administrative penalties. Furthermore, taxpayers declaring a loss are now required to pay a "Minimum Alternative Tax" of 2.5% of their total annual revenue, unless they can provide convincing evidence or court-approved insolvency documentation. The guidelines also introduce strict measures for real estate developers, requiring them to report revenue based on construction progress and restricting Value Added Tax (VAT) input deductions until sales commence. Developers who previously benefited from VAT exemptions must now return previously deducted input taxes if their sales are deemed tax-exempt under the new laws.