The Ethiopian government is planning to introduce new taxes on real estate transfers and vehicle ownership transfers.
Real Estate Transfer Tax
The government is planning to impose a tax on the sale or transfer of real estate properties. However, it is not clear from the government of Ethiopia documents whether this tax will be paid by the sellers (real estate developers) or the buyers of the properties.
Vehicle Transfer Tax
The government also plans to introduce a tax on the transfer of ownership of motor vehicles. This tax will be applied to all vehicles when they are sold or transferred to a new owner.
Tax Collection and Use
Sources claim that the authority to collect and use the revenue from these new taxes will not be given to regional or city governments. Instead, the federal government will collect and use the tax income.
The government of Ethiopia this month opened real estate sector for foreigners. Foreigners can own real estate in Ethiopia now. Since no notification has been issued about these taxes so far, it remains to be seen what this decision will lead to.
More Stories
Safaricom Ethiopia Intends to Invest $1.5 Billion to Expand
Ethiopia to divert 30% of its cargo to the Berbera port of Somaliland
More Stories
National Bank of Ethiopia NBE Exchange Rates
Commercial Bank of Ethiopia CBE Exchange Rates
Gold Price in Ethiopia