Alert: Council of Ministers Regulation No. 586/2026 entered into force on 23 February 2026, published in Federal Negarit Gazette No. 17. It repeals Regulation No. 517/2022 (as amended) in its entirety.

The dormant 2015 Transfer Pricing ("TP") Directive was recently renumbered and reissued by the Ethiopian Ministry of Finance as "Directive to Provide Rules on Transfer Pricing Directive No. 981/2024."

Ethiopia's Income Tax Proclamation (1395-2024) seeks to overhaul the national tax system to boost revenue improve equity and streamline compliance. Its goals include expanding the tax base, curbing evasion, and enhancing public service funding through fairer taxation.

Ethiopia has long offered tax holidays and other investment incentives to attract capital, including income tax exemptions and customs duty relief on capital goods.

Ethiopia has enacted Council of Ministers Regulation No. 586/2026 (published in the Federal Negarit Gazette No. 17, 23 February 2026) to implement a refreshed regime of tax and customs incentives for holders of investment licenses under the Investment Proclamation.

Ethiopia recently enacted the Startup Proclamation No. 1396/2025 (the "Proclamation"), introducing a long-awaited legal framework for the recognition, regulation, and support of startups...

Ethiopia has emerged as one of the most compelling investment destinations on the African continent. With a population exceeding 120 million — the second largest in Africa — a strategic geographic position at the crossroads of African, Middle Eastern, and Asian trade routes, and a government that has undertaken a sweeping programme of economic liberalisation, the country presents opportunities of a scale and diversity that few jurisdictions on the continent can match.