Ministry of Revenues Issues New Financial Reporting Rules for Multi-Sector Taxpayers

The Ethiopian Ministry of Revenues has instructed Category 'A' taxpayers involved in multiple business sectors to prepare separate accounting records for each trade activity alongside a consolidated financial report for the 2018 fiscal year. According to the Income Tax Amendment Proclamation No. 1395/2017 (Article 86 and Schedule C), this requirement applies to Category 'A' taxpayers in multiple sectors, professional service providers, VAT-registered entities, and voluntary record-keeping Category 'B' taxpayers. Taxpayers must prepare distinct financial books, supporting documents, and tax declarations for each sector. The Ministry revealed in a circular sent to branch offices that the Standard Integrated Tax Administration System (SIGTAS) is currently being updated to accommodate the new tax declaration forms. While taxpayers adhering to the Ethiopian fiscal calendar have until Tikimt 30, 2019 E.C. to file, those filing early are required to temporarily use manual declaration forms until SIGTAS is fully updated. Once the software enhancements are completed, all submitted physical data will be migrated into the digital system, after which manual tax filings will no longer be accepted.