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FEDERAL NEGARIT GAZETTE
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

~1J»t-- Hm~'1 qon'}' cf:'1'C Q md·r-p.,,f' t..Y,lrt\ce ~/f1'n6-o.,f'ce tTl1t\.n 19th Year No. 4
h"ti'l Mlil UP,C r,' </,'t ~i'i.(; ~.9". ADDIS ABABA 29 th November 2012
rfhlll1 'rro}Ir-1' 9 nC (1.). mfl4!~')' rmtTJ
D

OTJorlifiJ.
~1'fl ~~C U{t/ffi..t; t}.9".
r h:Hlll1·oo'}')· Olffll.:f'?f ?J'fe; t\h'1C ro'll~ flt\ '1111'1'
r'rht\t\, r /»lr oollta1' rO'1l.'l.ll·h!''f 9"nC (11' ~ 111 ....
... ... .. ....... ... ... ... ...... ... ......... ... ... ....... '1'1\ Z7i.Zf!5Z
LP'}ml.1f .... . ............ . .. . ... .. . . ... . . . ... ... .... '1?! Z7i.n.'lE
CONTENTS
Regulation No. 270/2012
Investment Incentives and Investment Areas Reserved for
Domestic Investors Council of Ministers Regulation .... .. ..... .
.... . .. ... . . ... .. .. ... . .. ... . ... . ... . .. ... . .. . .. .. . .. ....... Page 6646
Schedule . . . . . .. . . .... . .. .. ...... . ..... . .. .. . .... ... ....... Page 6653

rOlf. 'l.ll1·C'1' 9D nC (1,). ~ 111 <I!~C §\'{t/~o.¢ COUNCIL OF MINISTERS REGULATION No. 27Q(Z012
llt\h, '}fill.)·oo'}1· D11fll:f'~?J1-e; /\h'1C -(J)oll~ ~OUNCIL OF MINISTERS REGULATION ON
Cl/\ U-fl-f. 'f ll/\+ h/\ '" r /» lr oollta1- r rotTJ fOlJ. 'l.ll1·C' 1- INVESTMENT INCENTIVES AND INYESTMENT
9"hC {1..)- ~ '}-fl
AREAS RESERVED FOR DOMESTIC INVESTORS
rOlf:'.ll ·)·C"·}"· rhC (1,). r ~\, 1·r-P.·,f' t..Y.t,t'\ce
This Regulation is issued by the Council of Ministers
~.quht,o.,f'ce tTl1t\.n hllt.1.OTJ. ~\}It\ '? · ·} /»Afll'fe;
Pursuant to Article 5 of the Definition of Powers and Duties
,,'ryflC t\ooroo'} orotTJm' h'P~' ~ £}, C ~tU!lifoi
of the Executi ve Organs of the Federal Democratic Republic
h'}cf>?! t; he; nI,:Hlll')'oo'}')' h'P~' ~£},C X.~~·i-!lfm.g
of Ethiopia Proclamation No. 691/2010 and Article 39 of the
Investment Proclamation No. 769/2012.

PART ONE

GENERAL
6. h'i!'C C6ft
1. Short Title
f.U Y: }l1 "f'h,'Hlll')·oo'}1· OlfOI.:r?f?J:r,e; t\h'1C
This Regulation may be cited as the "Investment Incen-
ro·ll£}' Cl/\Ul1-f'1' r+ht\/\' r /»6- an t'lJl l'
rOTJ. 'l.ll')·C'-:'~ rnC (1,). Y:}l1 ~£},C !n{f/~(i.?;"
tives and Investment Areas Reserved for Domestic
Investors Council of Ministers Regulation No. 270/2012".
,,,,'ot\" t\.mcf>ll ~ :r·t\A: :
, 2, Definitions

In this Regulation unless the context otherwise requires:

r j>t\. ~,'lCl-fl t'A +C1-9" rOlf.,f'Omro· }IAlf'/
Oll'rcf>C OH.U Y:}l1 (J)'ll~:- 11 "Proclamation" means the Investment Proclamation
No. 769/2012;
M "h'Pl';" Olft\')· f'h,'Hlll')'oo'}')' h'P1: </!£},C
Xf~·!!Iffi..Q ~(J). i 21 the definitions provided for in Article 2 of the
Proclamation shall also apply to this Regulation;
ifl Oh'P~: h'}-"?! ~ r·rom· ')'C:'}Olf,$D:r, t\H.U
.\':)-or ·rt.'lOlf. f.lfe;t\·j
r}~ 'P;J ~ ;Jt·}· ;JlttTJ T. ''"/ A~ ii,o.li
12.85 Negarit Gazeta P.O.box 80,001
Unit Price

I
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Federal Negarit Gazette _ NO.4 November 29'" 2012 Page 6647

EI "h.~'}I'l" OTJI\')' OOTJ.'l.fl,)-(:,l, 9"hC n,,}. f:Hl 3/ "Agency" means the Ethiopian Investment Agency
4!rrC f.~:Sj!/ftiX; h'}f.1CJ f,t-<J:<J:oo(J)' fh'}'f'~'f re-established under the Council of Ministers
h'Hifl')'oo'}-)' ~b~'}1'l ~(J)- i Regulation No. 269/2012;

!il "{lC~" OTJI\'}' OOTJ. ~.fl,}·C':r· 9°hC n,'}. f:HI 4/ "Board" means the Investment Board referred to in
~rrc !t~~·j}/~7i.?; n'}4>~ 1;((i) f,'-ool\h·t-(J)· Article 6(1) of the Council of Ministers Regu-Iatlon
fn:Hifl1'oo'}')' nc~ ~(J)- i No. 269/2012;

lH "ftJ'C;f'A tJ:J>" OTJI\'}' crc')' I\OTJcrl')' (J)~9° 5/ "capital goods" means mach inery, equipment and
n1A,?ft<>')· l\ooflm1' fOTJ.ffll'l\· fOTJcrl~ their accessories needed to produce goods or render
m~cr n1A,?l\o,}. oofl651. ooUftffJll' (J)K,cr services and include workshop and laboratory
tJ:J>fJl'f hCJ hhl'll'ltfJl~r(J)- I'llf~' I\h~H.U· machinery and equipment necessary for same;
h1A'?ft<>1' fOTJ.(J)·ft. f(J)Chi'iT hCJ fft-nt-f.t
ooUftffJll"}Cj tJ:J>fJl'f'} ,e,Q;),9"t-A i 6/ "construction material" includes basic inputs
necessary for the construction of investment
~I "f,?'}ll;f' tJ:J>" OTJI\'}' 1\ h'Hifl'}'oo'}1' TC'~h'}' projects;
,?'}ll;f' fOTJ.f1I\'?1\.
fm:J>t!\ftA i 7/ "customs duty" includes indirect taxes levied on
imported goods;
1.1 "f1-cr~h 4>lrr" OTJI\'}' 0'10. tJ:J>fJli· ft,e~ fOIJ.
fTJl\· 4>rr,t-~ ft!\lf~' ;f'h(ll"Hl" ,e~Q;),9°t·t!\ i 8/ "income tax" means tax levied on profits from
business and categorized as the revenue of the
f;1 "f1n. '?-nC" D?I\'}' ft..f.t-I\· oo'}'?P"}· m,e,9"
federal government, regional governments or as
fht!\A oo'}'?P';f"}' m~9° fO'I\'~ f :16· 10.
their joint revenue.
flf~ O')'C~ ft~ fOTJ.fTJt!\ ;rhfl ~(J).::

r. Ilh1C ro-hrr flIlVll-f.'f ...Il.,.hllft. f P't- ooh,...'f 3. Investment Areas Reserved for Domestic Investors

(il fOTJ.h·t-ft.,)· f P't- 00 fl,... i· h'}'f'~'fce It ,?~,). II The following areas of investment are exclusively
flftrm· 1lI\O-n.y·:-r- -n~ fD?tJ'l,~ ~lfCJI\-:- reserved for Ethiopian nationals:

U) fW}h: fh:}(i.t-'}fl hCJ h~fl,t-~ f-n~CCj a) banking, insurance and micro-credit and
f~mfl 't-<J:cr P't-fJll' i saving services;

1\) tJ:J> fJl:r·'} fOTJ7i'?: fOIJfl,t-ftl\~ h Cj b) packaging, forwarding and shipping agency
fooCh-n (J)·hACJ n1t!\'?l\o·y·:r· i services;

rh) fllC'~}lflrt:'},? h1A'?(ro'}' i c) broadcasting service;

00) f001CJ~ -nH·')'} p't-fJl:f' i d) mass media services;

lP) frr-n:"Cj hCj ft'h'? OTJOIJhC n'/A'?l\o,). i e) attorney and legal consultancy services ;

l) h1C-04>A llUftce oo~~~•.y·l"} OTJH;J~'}' i f) preparation of indigenous traditional

medicines;
I'l) fD?fl;f'mcl:!f: fTC'quO'} hCj f')'C1'9"
P't·fJll· i g) advertisement, promotion and translation
works;
7i) hflh 1 oo'}1f. "If':f· f 006T>}.·} h:"9° 1l1\(J)'
h(J)'C' Tft'} fOTJ.I'lrr fh1C (J)·fl'l' foo'} h) air transport services using aircraft with a
1y."lf':f· fhfC 1·t-'}flTC'}· n1A,?l\o,}.:: seating capacity up to 50 passengers.

J.I I\H.U n'}cf>~ 'W·fl h'}4>~ (Ii) ht.~~9° h'}~ 2/ For the purpose of sub-article (1) of this Article, a

f1'? ~ OIJ"IOC h'}'f'~'Yce It ,?~,}. hl\(J)- business organization may have Ethiopian

fOTJ.flIlm· fOTJ"IO~ tJT;f'A 00-1\· 000'1\- nationality, provided that its total capital is owned

Oh')'f'~'f(J)- f'} fll\n,')'~1' f,t- fH h'}f.lf~ ~(J).:: by Ethiopian nationals.

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Federal Negarit Gazette _ NO. 4 November 29 th 2012 Page 6648

4. Investment Areas Allowed for Foreign Investors

fil hH.u f:H1 ,?C i'y.ett 00lJ.17ar LP'}ml1r 11 A foreign investor shall be allowed to invest in
i'~ ~1'C fi.E.E: fi.!t~-: fi .t.-: fi. l fi.E-: areas of investment specified in the Schedule
fi .lfi.g-: (;.E -: Z.f: t.~ i i!.~ -: i!.E "hCJ I~
attached hereto, except those areas provided for in
h'roofth-F')' Oili'4>C OLP'}ml1f. O'root'l
number 1.3.3, 1.4.2, 1.7, 1.11.3, 1.11.4, 5.3, 6.2,
h' f:')' fbt'l,,:r' r /»~ ooiltl:-f rm·~ flt'llJrO')'
8.2,9.2,9.3 and 12 of the Schedule.
n:Hiil')' UTf~l'1 f,t.4>~t'I;J-A::
f[1 rttu n'}4>7\ '}O.i1 n'}4>7\ (fi) ~'};J1. 0.C;'C9u 21 Notwithstanding the provisions of sub-article (I) of

OnlJ'Ji; n'}4>7\ ?;(fi) "hCJ (~) "hVt U'~ Ottu this Article, the Board may allow foreign investors
Y:}rO n'}4>7\ E(fi) hi'oot'lh'b')' Oil'r'f>C to invest in areas other than those specified in the
rm·~ flt'lUrOf~ r OLP'}ml1f. hi'HlH<:,')' Schedule, except those areas provided for in
m'~ Ofbt'l":f r /»~ ooiltl:r· "h'}-'ttt'r~ Article 6 (1) and (2) of the Proclamation and
(lC~ 1Lt.:"~ .er"A::
Article 3(1) of this Regulation.
EI Ottu n'}4>7\ '}O'i1 n'}4>7\ (fi) m.e~ (f[)
3/ A foreign investor who invests pursuant to sub-
OOLPl')' On:Hiilo}'oo'}-)' /»~ r'rLPUTft,.
article ( 1) or (2) of this Article may acquire a
UTf'}~m'9u rm·~ flftOrO')' t'I/»~m· rOlJ.Y
i1t.A1m· r'1A r1'1~ roo'}1~ UTfoo"t'l7i private commercial road transport vehicle
i'7ihC t lt flt'lo,,)· ILlf'} .e:r'''A:: necessary for his business operations.

h~l\ rrfto}· PART TWO

r he 17iilo}'0010}' t1IJOl;J=:r JIlr INVESTMENT INCENTIVES

")o-i1 h~l\ n1~ SECTION ONE

r1n. "7rOc ." t1IJOl;J=:r EXEMPTION FROM INCOME TAX

~. ftnllil ~C1:o}' i1ftt1lJ.fl1' "'In. '1rOc UTfOl;J=:r 5. Income Tax Exemption for New Enterprise

n-'til ~C'f:,)· ftUTf**~ h'mil')' rOlJ.Y Y.C'1 11 Any investor who invests to establish a new
flt'l urO,)· hH. u Y:}rO ,?C Oi' YYtlm· LP '}m enterprise shall be entitled to income tax exemption
l1r Oi'oofthi'ar OOLPl')' r10. '1rOc "'1 as provided for in the Schedule attached hereto .
UTfOl;J-:r i'm:POIJ. .elfCJ A::
2/ Any investor who invests to establish a new
f[1 n~.i1 ~C'f:,)· t'lUTf**~:- enterprise in:
0) O,?~o,,, thll(l'f nAA;
a) the State of Gambela Peoples;
t'I) Oo,'}?i'}1'AI1-~1I nAA 1
b) the State of BenshangullGumuz;
dl) On~C nAA (hnlJ'7i m'}l1 "hilh 1(;
h.ft<> UTf.')·C '1~CJ 4>~ t"Jtt- nt"Jfln.JIl'f· c) the State of Afar (except in areas within 15

Oil'r4>C) 1 kilo meters right and left of the Awash River);

00) Ofl-UTffb hAl\ 1 d) the State of Somali;

LP) O~C'OIJ.Y nAA O1·;t{,CJ (llCJ tt'f:r'l e) Guji and Borena Zones of the State ofOromia;
m.e~ or
l) OY.O·rO rOth.C'r i rOth.U\(l'f'CJ th11flr f) South Omo Zone, Segen (Derashe, Amaro,
hAA OY.O'lI ~qo W} -: Ofl1'} (Y.~7\,-: Konso and Burji) Area Peoples Zone, Bench-
nUTfC' -: t1'}(lCJ O'C~.) nt"JflO. thl1(l:r' Maj i Zone, Sheka Zone, Dawro Zone, Kaffa
W} -: Oo,'} r UTf~. W} -: CliVI W} -: Zone or Konta and Basketo Special Woredas
O~m·C' W}-: Oh4. W} m.e~ Otl'};J-CJ
of the State of Southern Nations, Nationalities
Oflilh.f~ Ar. ml~$D"f 1 and Peoples;
h'milo}' rUTf.Y Y.C'1 flft 011')' OLP'}ml1f.
shall be entitled to an income tax deduction of 30%
O,root'lh,rm· oowlo}' rUTf.Y17m· r1n. '1rOc
for three consecutive years after the expiry of the
UTfOl;J-:r ttl. hi'mCJ4>4> 01." ft~i1o}'
i'h;1';1'.e £}oo ;1'0}. Or'iOO-F r~J Oooof r1n. income tax exemption period specified in the
'1l1C :"CJ1i .ef.l '1 ft;1' A: : Schedule attached hereto.
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I. ft'lllC 1:C~~' D'lfl4.kf m,.,'l" D'I?i?if flft"'l.t'l1' 6. Income Tax Exemption for Expansion or Upgrading
f1O. "'HIC D'lOl;t=:f of Existing Enterprise

O"tp~; ,,'}cf>~ f(;'t) ooLPl,1· ~flC f:C:£!·,t:'} .f'tttf.4. Any investor expanding or upgrading his existing
m~'l" .f'?i?ill fllIl1l1~' hD1Jtttf.~.f'OJ· OJJ!,cr enterprise pursuant to Article 2(8) of the Proclamation
h D1J?i?if m- II "'l..f'17 m- ", (JJ, D1J t 1 (1. h tl u ,(J:}l1 shall, with respect to the additional income generated by
;JC 0'" f .f'Hm- u '}ml1r ooLP l-1' h10. "?l1C ~'!
J the expansion or upgrading, be entitled to income tax
pooLf'} 0011,1' .f'1~t\:: exemption as provided for in the Schedule attached
hereto .
'l"C1:1 m,.,'l" It1 t\ "? ft-1: 1 m Y.. m-~ ""'l. Ah
i lift V 1l~' fl ft "'l.t'l1' -rQ;\, D'I t f 1 (1. "?llC D'l0 l;t=:f 7. Additional Income Tax Exemption for Investors

D1J'}~m-'l" fl" 011·1· (1.,f"}fl JOooi'. PD1J. Lf~OJ"} Exporting Products or Services

'l"C-t:'} OJJ!.'l" "u\ ,,?ft--t:'} OJY. OJ·6J}' fD1J.t\h Any investor who exports or supplies to an exporter as
OJ J!.9"O mY. OJ· 6J}' "D1J. t\ h fl" 1111'1' 0 'l" C ·1· OJ J!> 'l" production or service input, at least 60% of his products
0,,1A "?,,.,-1· "?11L}·1·~·)· f"'l..f'cf>C'O hLf~ OLP'}ml1f or services shall be entitled to income tax exemption for
h'I'~cf>Y.II')· O"'bt1.D1Jt 1111,11-1, L}00-1' h10. "?l1C two years in addition to the exemption provided for in
~'1 ~LfCJA:: the Schedule attached hereto.
~. D'l0 l;t=:f fl" "'l. .,. 'I fl 0 ~ • rr 'I.;t= 8. Condition for Reducing Incentive
OH.U Y:}l1 ,, '}cf>~ l;: Z hCJ :~ r'I'Y.~17(J)· OSC'l" Notwithstanding the provisions of Article 5, 6 and 7 of
rt-o·'} rD'l'l"l:f OJ~'l" ,,1t\"?I1",1' oott"'i (h';'! this Regulation, the income tax exemption to be granted
1'\~1~fl hH,U Y:}l1 ;JC "'.f'~t1 0D1J.17(J)· LP'}ml1r
to an investor who engages in an area of manufacturing
(l'1'00Ilh,t:,1· rD'l'l"l7 h.'}~tt'1·t (J)f!,9° roolJ{Cf
industry or information and communication technology
001Cf~ 'l;hc;'II,,;Q.. AD'I-1' r!»1r ootth r'l'u J D1J1r
development, without constructing his own production
D'I'}~(J).'l" flll 011'1' r"'l..f'17m- P10. "?l1C D'lOl;r7
or service rie ndering building, shall be one year lesser
(lLP1ml1f IIP!»t- ooflp~ h'l'oollh",m- O,,'}f:
than what is provided for in the Schedule attached
L}oo~' .f'~t'l f!,LfCJA::
hereto.
ii. ool)J flftD'l:"lll
9. Duty to Submit Information
D'l1~m-'l" flIl0l1-1' Otlu Y.111 ,,'}cf>~ l;: ?; hCJ %
An investor shall be entitled to the exemptions specified
11-1' 00 II h-p",' f1(1. '?l1C '1'1 D'lOl;r791:;' '·l'm:PD'I.
in Article 5, 6 and 7 of this Regulation provided that he
P"'l.lf~m- "tt~/\1.OJ·'}
oolJ{ ,,'?fll1 "II OJ· r"?l1C
submits all the required information to the relevant tax
0111'\0. oo!» t.f' 0,,1, t'l..f'cf>Cl1 f!,LfCf t\::
authority .
I. h1(l "'1llC 'I' fooLf~ H001 oo~mC ttll"'l.;e:'l"C 1O. Commencement of Period of Income Tax Exemption
O~· 't11.
II The period of exemption from income tax shall
!il h10, '?l1C ~'1 rooLf~ Hoo'} oo<~mC rD1J,:£!9°
begin from the commencement date of production
lro· fllll1l1'p oYJ'l"l')' OJ f!, 9° A1t\"?I1" ·1·
or provision of service by the investor.
ooflm')' h;e:oolO·1· 'tit ,,'}tti" J!, LfCf t\::
21 For the implementation of sub-article (I) of this
fl IItl U ,,'}cf>~ 'W·tt ,,1cf>~ (li) A&.~~'l" A"?fll1
Article, the appropriate investment organ shall
film- fh.'Hlfl'1·oo '}~· A!-JA fllIUl1,p oYJ9°l,1·
notify the relevant tax collecting authority the
mj!,'l" "1t\,?ft-,,1· oottm,l· r:£!oolo,1·'} 1,tb
commencement date of production or provision of
ft"'l.oollh",ro· r'?l1C t'l111'\(1. oo!»t.f' 0,.).
service by the investor.
fl'\m-:PA::
11. Declaration of Income During Income Tax Exemp-
I~. (l1O. "'1llC 'I' foolf~ H001 10.1 flftD'll'\m:"
tion Period
r1(1. '?l1C oYJOl;r7 "'m:PoYJ. rLf~ oYJ'}~OJ''l''
An investor who is entitled to income tax exemption
fill (}11~' h10. '?l1C ~'1 Otf~O'1' Hoo'} PoYJ,.f'17OJ·'}
shall declare, every year, the income he has obtained
10. ,,'?fll1 "II OJ· r10. '?l1C 0111'\0. oo!» t.f' 0,-1' during the exemption J1eriod to the appropriate tax
OPL}oo-t: D1JI'\OJ:" f!,'i'CO;rA:: collecting authority.
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If. h. ""It., {)IV7'1{)T"f\~ 12. Loss Carry Forward

til h'Hl. °H1C ~'1 \'ootf ·} Ol/OI.:f':r o'rnrnn'l' 1/ An in vestor who has incun'ed loss within the period
tloo'} (J)'(}'1' h."tt. Y ;Jrnoom· °"l'g~OJ'9" of income tax exemption shall be allowed to carry
111'\0 -0·1· h'Hl. "?oflC ~ (I \,uotf~: Iluo'l' forward such loss for half of the income tax
h'rrnCJ1"" 0')/1 \,H.O· tloo'} ,?llTJ"lj I'\~.tf·} exemption period after the expiry of such period.
lit h.'-'-Jt·(D· ,('," ~ "I'\~I'\;rA::
2/ Notwithstanding the provisions of sub-article (I) of
!II OtI.U ~l'}'f>7\ '}O.(} ~\ '}'f>~' (A) \"'~Y.'J'I7(D·
this Article, for the purpose of calculating the
OS'C9" h/lt·'} rOlJ(}'r"f\fj~ tloo'} 1'1 .1'1" ,?orfli
period of loss carry forward, a half-year period
t:}oo,l· Y ,:Jrn oo h'}Y.lf~ h'}Y.UD·tt· {>'Hl. "l-fl C
shal l be considered as a ful l income tax period .
lloo'} ,('.·I\rnt·A ::
i.'1 Otl.u ~l'}'f>71' '}O.(} ~\'} ("7\ Vi) hCJ (!I) 3/ Notwithstanding the provisions of sub-article (I)
r"·J'.'I'l'1m· OSC9" 0'10. "?'I1C 'Ill ruotf~: and (2) of th is Article, an investor who has incurred
lloo'} h."lt· rJ'.l.no,l · ~'g:m'9" 111'\ 0-(1') ' loss during the income tax exemption period may
\' f.l.no,l·'} h.'~1 t· hn9"(}') ' r'Hl. "?oflC lloo'} not be allowed to carry forward such loss for more
11",(', OlJ(}"'''l'\fJ~ n,(',:r'A9":: than five income tax period.

,D-{) tJ~t\ rrf\')' SECTION TWO

\''1-9''~tJ +/''1' ." OlJn/.;r~ EXEMPTION FROM CUSTOMS DUTY

If:. \,I-]'[';t=t\ CJ \,,,?,I1;J= tJ:J> ~"f h'1-9"~tJ +/''1' .,1 13. Exem ption of Capital Goods and Construction
{)f\oo(f, Materials from Customs Duty
iii htl.u Y:}'O ;JC O,rYYHm· uJ'}(nl.1f 'rt· 11 Any investor engaged in one of the areas of
(t:'1'C :(,'1 Xii: XQ hCJ X(; \""uol'\h'h')"} investment specified in the Schedule attached
t'l,('.(J,1,9"C l1uJ'}rnI.1r- h·"III.tI~·)· \> J»t · hereto, except those specified under numbers 7, I I,
00 (}p:r· Ml'}~' r,'·U Jo'} t· OlJ'g~ OJ'9" 111'\/1'0')'
14 and 15 of the Schedule, may import duty-free
1'\~. Y*'/!oom· n~.(} 1:C:~:+ OJ,('.9" '/fJC
capita l goods and construction materials necessary
Y:C~"I:'} f\~(}1.1.·)· m,(',9" 1'\~i'ii'iA \>o'J.Y(}
for the establishment of a new enterprise or the
/'.A·l· \,ll,[,;J~ACJ r,,?'}I1;r o:PfJ1:r· h'/'9"~f1
(1'1.'1' ~'I 0'}(}'/11'/' ,e,:r-t'\A:: expansion or upgrading of an existing enterprise.

!il tttl.u n'}<I'~' 'i O·(} n 'j "'~' (l!) ~\/' . y'~9 "
. 2/ For the implementation of sub-article ( 1) of thi s
111'\ O·O·h h1'9 "~ f1 .f> I. '1' ~'l h'j,cUI1' Article, the investor sha ll submit, in advance, the
r~./'.A;J1:OJ·'j \'}I '[';rA '1 \' ,,?'j 11 ;J~ oj'fJ1'l list of capital goods and construction materials to
l1CltC f\ 0'1. ool'\h·rm· r n:Hl(} ')·oo'H· ~l}IA be imported duty-free and get approval of same
o:r Y.:OlJ.Y 00lJ:r 1.'0 OlJ(}/,A' Y: ,('.C;'CI1;rA:: from the appropriate investment organ.
i.'1 \'1'9U~h '1'1.'1' '/'l ~OI.;J~~ " 'm~4JOlL rtf', 3/ If an investor entitled to a duty-free incentive buys
111'\ Oofl')' hn'lC Q)'(}'1' \'0lJ9"1.:r n:j~(},) ·tfJ1 ·.f
capital goods or construction materials from local
\,lIT;rA m,(',9" \,,,?'}I1;r o:PfJ1:r·' } 1'1:1'1
manufacturing industries, he shall be refunded with
o:PfJ1~'j 1'\ 0lJ9" I. ,). o"?·wH· '/,), WPI'\'·)· rp.,;,
the customs duty paid for the raw materials or
O:PfJ1 :r· m,(',9" ~\} ll'\o :r· ",(', \>'I~h/'.I'\m· r'7'9\l t;~f1
components used as inputs for the production of
cf> I. '1' .r 00" 'li ,(',)'.1. "? I'\ ;r A: :
such goods.
QI OH.U ~\'} '''7\' ooUJI.')· \"/'9" <~h "' 1.'1' ~ll
OlJOI.;J'~ r~,t,(f>1:f\')' ~'} ~ m·9" 111'\/J-(1·)· 4/ An investor eligib le to a duty-free incentive
'P ;Jrm· h~I T;rA o j>fJ1:f. m:rt'j" 'P;; X(; pursuant to this Article, shall be allowed to import
n oo1'· 001'\ 'Pm fJ1 :r·'} TC:.'P:h"~
\,°'lY,OAm· 6bl spare parts the value of which is not greater than
~9u I.')' m.e9" ~\1A "/1'\0')' oo(}m:" h:P:ool.n ·)· 15% of the total value of the capital goods within
1.1t ~9"C' h(}h n9"(}r). t:}oo')' Y:I.(} h'I'9° ~f1 five years from the date of commissioning of his
+1.'1' '1'1 h'}~.Y(}111 .et.+1:f\;J·A :: project.
1.2. \'T7ihCl-]t~"f h'1-9"~ tJ +/'1' ." ootf,
14. Exemption of Motor Vehicles from Customs Duties
'r'lihC}lt91:r· 00'1'\· 1100'1'\· m,('.9° nh/"'A h'/·9"<,f1
The total or partial exem ptions of motor vehicles fro m
.f> I. '1' '1'1 tf'lm· \,o'}:II1'I1')' /J.II:.:J~ \' ~l:H)(}·)·uo·H· customs duti es shal l be determined by directive to be
TC':P:h1':·}'·'} t:},('.~·)·CJ qUI. oouJI.')· O~J.':I."? (lC~ issued by the Board based on the types and nature of
OOlJ.Ymnlm· ooootY \'OlJ.mn'} ,('.tf'1 A: : in ves tment projects.
 www.chilot.me

Federal Negarit Gazette _ No . 4 November 29'h 2012 Page 6651

If;. h1'rt;..tJ .,.l1' ." If'i r'lCl tJ:J>1 llltD'fll"""It~ 15. Transfer of Duty-Free Imported Goods

M h'1·9"t;..tJ 4'l1' .,,, 11'(;' \'1Cl OTJ'1:f(J)'9" II Capital goods or construction materials or motor
f t lT.;r6'\ mg,9" f,?'}Cl;r tJft> (J)g,9" 'rnhC}lt vehicles imported free of customs duty may be
'roottttg, f'1'9 u -:-tJ <f>l1' ~(I oo-{1'1' "I\(J)' O(J)' transferred to persons with similar duty-free
I\.. ' r" 1\ tj: g.:T. "6'\ : : privileges.

gl Otto ~\'}<l'~ '}D·ll ~\'}<I'~' (!i) f"1-».711(J)· 21 Notwithstanding the provision of sub-article (I) of
O,lj' C9" All<f> r;qo ,r1fl.(J)· f'1·?"t;..n 'I' L l' this Article, the capital goods or construction
'rhlj~I\" f'1) T. ;r A (J) f!.r f' ,,},}fl;J- tJ :l'(J)' (J) g,?" materials or motor vehicles imported fTee of
rr nhCI) t(J)o f'1·9°t;..tJ 'I' L l' 'I" oorfl,)· I\I\,I\(J). customs duty may be transferred, upon effecting
n(J). 1\,'1-" 1\ lj: g:'l:" A : : payment of the appropriate customs duty, to
persons having no similar duty-free privileges.
tl fll\/J'O'p h'/'9"-:-n <f>L1' '/" lflj' Yll1QOJ"}
f'})T.;r6'\ (J)g.9" {J,?'}fl;r oft> mg.9" "-nhC}lt 31 The in vestor may re-export the duty-free imported
006'\ (l h ~\'} C h 'i ~.(J)t11 OTJ g: L '? g, :)'-1\ 6'\: : capital goods or construction materials or motor
!H f'ti.O') A'}<f>7\' r;'},?1,?J:r· f',t·"l\t. OTJ'g:OJ'9" vehicles.
fJl\/Jrfl')' Aifl'O ClI\(J)' f"/·9"t;..n ~\(P"f: r;'}:yJ. 4/ An y investor who contravenes the provisions of
ooUJ L ,). g,<f> t11 6'\ :: this Article shall be punishable in accordance with

tJ~A Y'll1' .
the relevant provisions of the Customs Proclamation.

PART THREE
t\~ Af. Y:1;n?Jl'
MISCELLANEOUS PROVISIONS
IZ. II It".. ?il '1 ".. 6-.1& OTJ. '1,). II It D'f g, 'i l(J)o fh '?
16. Repealed and Inapplicable Laws
!il llM,:Hl{),)·oo'}')· OTJOL;r~:?J:r.c; M,1C (J)'{)1'
II The Investment Incentives and Investment Areas
fll\ /J-{H·i·· {)I\'rhftl\' f' pIt· oo{)p:r· r(1) t11m'
Reserved for Domestic Investors Counci l of
f'OTJ. 'l.ll')·C'·'}'· 9"nC 0..). »:},O </!1'C ',tQlXi!.ti(;
Ministers Regulation NO.84/2003 (as amended) is
(h '}J'.,!-i"i'\ft) Ott. 0 »:}rfl 'r 06: 6'\::
hereby repealed.
~I htto »:HI ;JC f'OTJ.ft>L'} OTJ'11-m'9" »:i'n :
21 No regulation , directive or customary practice
ooootf mg.9" f'AlJ-lt-C 6'\9"r; Ott.o J':HI
shall, in so far .as it is inconsistent with this
f'rot. 'I, 'l·~f'···r·'} O'rool\h'r 'l·t.~O'l:d·
Regulation, be applicable with respect to matters
Ag,c;' L(1)'9"::
provided for in this Regulation.

17. Transitory Provisions

!il OH,O »:}rfl A'},,.7\' Th f"r».'111(J)· OSC?"
II Notwithstanding the provision of Article 16 of this
llI\A:Hl{)')'oo'}') ' OTJOL;r ~~ ?J:1'·'1 I\A 1C (J)'{)1'
Regulation, incentives granted pursuant to the
Cll\ /Jrflf· i'· ()I\,rhl\l\· f' P' t- oollp ',1" Om t11 (J).
Investment Incentives and Investment Areas
f'OTJ. 'l.{),)·C"f 9°nC 0.')' »:HI .p.1'C 1tg;!nt~?;
Reserved for Domestic Investors Council of
(h,}».,/·i'\'t\I\) h'1 »:}O·'} I\OTJllt.~9" O(J)(l1'
Ministers Regulation No. 84 /2003 (as amended)
00 ootY ?J:r- oouIL')' f"I-t.1'?. OTJOL;r;f91:f
'r t,~ OTJ. 'I')' g. ,/, l' 1\ 6'\ ::
and the directives issued there under shall continue
to be effective.
~I llI\A:Hlll')·ou';.)· OTJOL;r1-?J:r.c; ftA1C (J)' {)1'
fll\ IJrfl,f,:r ()I\'I-hl\ft· f' P' t· oo{)p:): 0(J) t11(J)' 21 Where an investor eligible for incentives granted
f'OTJ. 'l.{)r)·C':r· 9"nC 0.,). »:}rfl '/!1'C 1(-!~IXj!fn; pursuant to the Investment Incentives and
(h,}».,ri'\i'\I\) h'1 »:HF} I\OTJ{)t.~9" O(J)m' Investment Areas Reserved for Domestic Investors
00 00 t f ?J -:''' 00 11-' L l' (1'1- 6. <f> Pr. ;r
OTJ 0 L ;r ?J'f Council of Ministers Regulation NO.84/2003 (as
rflo/. lfCj 000-0-1: f A'rm <f>oo fll\ /Jrfl,)· Otl. 0 amended) and directives issued there under has not
»:}rfl OOlJ-lL')' OOTJ.6-.<f>~ OTJOL;rf $11:}" ·rmft>OTJ. yet exercised his right, opts instead to be a
I\oolf'} hoolm f!.O'}7· A'?flrfl "ft(J)' f' A:Hl{) beneficiary of incentives provided for in this
')·oo'}')· ooP'tf 0..). OOTJ{);r(J)~' foorfl·p Regulation, he may notify the appropriate
·/-m:pOTJ. I\oolf'} g.:r-"A:: investment organ and be entitled thereto.
 www.chilot.me

1'1, Z7i.U.2f t ..'y./rG\ ~;JtT ;JILtTJ cf!'l'C !i U~C ~ .,.., f7i.~ 'i.ro. Federal Negarit Gazette _ NO. 4 November 29 th 2012 Page 6652

!~ . 1.10- f'"l.O'lO-l· '1.11. 18. Effective Da te

f,u Y:Hl nt..Y.t·A ~.?t,.) . .?ltfTJ ;r')'qo h(J)fTJfl·)· This Regulation shall come into force on the date of
'V} ~9"C' fO'l f.lf'lA:: publication in the Federal Negarit Gazette.

n~.ll nflll U~C n ,,"'} f7i.(; ~.9" Done at Addis Ababa, this 29 th day of November, 2012 .

')~fltT<JCfva I.c\fI~ HAILEMARIAM DESSALEGN

fh.-l·r-A'f 4..1.t.t\1f J4.,'l"ht.l\.f'f tTilfl.h PRIME MINISTER OF THE FEDERAL

m~t\~ '"l.tll-l·C DEMOCRATIC REPUBLIC OF ETHIOPIA
 www.chilot.me

Oh-'til hOc]CJ
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 www.chilot.me

Federal Negarit Gazette -

No.4 November 29 th 2012 Page 66 53

SCHEDULE
INVESTMENT AREAS AND INCOME TAX EXEMPTIONS

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa

1 Manufacturing

1.1 Food Industry

1.1.1 Processing of meat and meat products

1.1.2 Processing of fish and fish products

1.1.3 Processing of fruit and/or vegetables

1.1.4 Manufacture of edible oil

Exemption from Exem ption from
1.1.5 Processing of milk and/or manufacture of income tax for 3 income tax for 5
dairy products years years
1.1.6 Manufacture of starches and starch products

1.1.7 Processing of pulses, oil seeds or cereals,

excluding flour production

1.1.8 Manufacture of other food products

Exemption from Exemption from

1.1.9 Manufacture of sugar income tax for 5 income tax for 6
years years

l.1.10 Manufacture of chocolate, candy, biscuits Exemption from Exe mption from
and other sweets (excluding ice creme and income tax for 1 income tax fo r 2
cakes) year years

Exemption from Exemption from

1.1.11 Manufacture of macaroni, pasta and/or similar
income tax for 3 income tax fo r 5
products
years years
 www.chilot.me

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'Ul,~ -1;0010 ~!V 'Ul,~ -1:aLJlo ;iV 'I: ", !.J UJ l.o ": J <tTJ c(. .J <tI, J '.t: .. VV f!' ~r 9
</:<"SlLJlw U'cbl}lwU 060'W </:UlUooU
{,.(.oo<" !J{':J'JW ! Jll{'lUlxoU ! -{'4~lwU
tJl 00 J b~ .JU·la tJl 00 J hi, .JU,la
! J,Ht04lxoU ! ruSV,l:lxoU ! -{·Lu{,lxoU
'Ul,~ -/:0010 ?!V 'Ul,~ -{,oOlo ~N
{".bFlU,W (l:J"lTJ«('J'l'tJJ ,J.:oVV S·{·
vLJ\;1t( ! loho SJ:J' ! JL( ! (l:J'lTJ ,(,Lu ~r~r9

tJluoJ h~ .JU·la tJl 00 J hi, .JU·~, u6-1~l.o

' Ul,~ .f:oOlo zV 'Ul,~ -/:aLJIo :~V !.J (I: ", !.J W l.o ! toO Y. 00 .J.> J W c(. J <tI, ;i'J'~

\:I..J'~oO
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!.J-/: ~CHl.o tt,-J-7 <t19 'I:JW<P' J<t'YJJ
'Ul,~ -1;0010 f)V 'Ul.~ .l;aLJIo gV
'VVvoOJ !.Jl!. .JlPJ !~-VJ hi.1J.,J ~'J'9

? ..I;IJiJ't ~ ±..vw.OJ LI;~IJJ !J{>JW<P'JWJ J'9

tJloOJ bl, JU.ID tJl 00 J b/, .JU·ID -I; 7 u6l.o t ·k en (, -W -.l::~V V -l. Y. Lr: J
· Ul.~ -I,-aolo ;iV 'Ul,~ -1;0010 ~V u60'(O t:jQl.oJ ! J.,WoO vvl}V g';i'~

tJlunJ hi, .JU·ln tJl un J hi, .JU·la

-1:7u6l.o \:I cl: U' JI'UJ u6'd(f)/!.Jl!. '1'U ~nf~
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. .
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...... ..-",

tJlunJ h~ .Ju.la tJloOJ b/, .Ju.l-,

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-/:7 u6l.o

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'Ul,~ -l;oOh gV 'Ul,~ -I;ao'o }iV +U7unW L'~J t'~-J\~ ! Jl.o !lJ1V
-(f)V ! It 7,·Jho ! 1.Ulvu6Jl ! ,v.Jll.
! 'dY. ! !.J-U 'bo'b.o'l.oJ ! .r:,·u W'7~J
·J·\:I~'·/~ ! .I;~(f) .r:,U.lau6 -1:!J~\l!J aI"!t'9
tJ1 cJ \l dk:J'< J
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d?-lt lJU~ 1J1J'~U L(l}ao * t ao 'I:l}J1t ~ J ' ~'L~
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06'b ~ty.;) {A, ~ J~(l ?! J~(', lullC' -I:?C~ \;1~'J0? m;J:fy.~ .~L
 www.chilot.me

Federal Negarit Gazette - No . 4 November 29 th 2012 Page 6654

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa
1.1.12 Manufacture of baby food, roasted and ground
coffee, soluble coffee, tea, yeast, vinegar, Exemption from Exemption from
mayonnaise, artificial honey, iodized salt or income tax for 2 income tax for 4
similar food products years years
1.1 .13 Processing of animal feeds

1.2 Beverage Industry

Exemption from Exemption from
1.2.1 Manufacture of alcoholic beverages income tax for 1 income tax for 2
year years
Exemption from Exemption from
1.2.2 Manufacture of wine income tax for 3 income tax for 4
years years

Exemption fro m Exemption from

1.2.3 Manufacture of beer and/or beer malt income tax for 2 income tax for 3
years years

Exemption from Exemption from

1.2.4 Manufacture of soft drink, mineral water or
income tax for 1 income tax for 2
other bottled water
year years

1.3 Textile and Textile Products Industry

Exemption from Exemption from

1.3.1 Preparation and spinning of cotton, wool, silk
income tax for 4 income tax for 5
and similar textile fibers
years years

Exemption from Exemption from

1.3 .2 Weaving, finishing and printing of textiles income tax for 5 income tax for 6
years years

1.3.3 Finishing of fabrics , yarn, warp and weft,

Exemption from Exemption from
apparel and other textile products by bleaching, income tax for 3 income tax for 4
d~eing, shrinking, sanforizing, mercerizing or years years
dressing

Exemption from Exemption from

1.l.4 Other textile finishing activities income tax for 2 income tax for 3
years years
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette No.4 November 29 th 2012 Page 6655

I

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa
1.3.5 Manufacture of knitted and crocheted fabrics
Exemption from Exemption from
1.3.6 Manufacture of made-up textile articles, except
income tax for 4 income tax for 5
apparel
years years
1.3.7 Manufacture of carpets

1.3.8 Manufacture of wearing apparel (including Exemption from Exemption from

sport wears) income tax for 5 income tax for 6
1.3 .9 Manufacture of accessories for textile products years years

1A Leather and Leather Products Industry

Exemption from Exemption from

1A.1 Tanning of hides and skins up to finished level income tax for 5 income tax for 6
years years

Not eligible for Not eligible for

1A.2 Tanning of hides and skins below finished
income tax income tax
level
exemption exemption

lA.3 Manufacture of leather products (luggage, hand

bags, leather balls and similar products) Exemption from Exemption from
~-;.'." income tax for 5 income tax for 6
1A.4 Manufacture or'leather shoe
years years
1A.5 Manufacture of accessories for leather products

1.5 Wood Products Industry

Exemption from Exemption from
Manufacture of wood products (excluding saw income tax for 2 income tax for 3
milling timber making and assembling of semi- years years
finished wood products)

l.6 Paper and Paper Products Industry

1.6.1 Manufacture of pulp Exemption from Exemption from

income tax for 5 income tax for 6
1.6.2 Manufacture of paper
years years

Exemption from Exemption from

1.6.3 Manufacture of paper packages incoirte tax for 3 income tax for 4
years years
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette No.4 November 29 th 2012 Page 6656

I

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Arcas
Oromia
surrounding
Addis Ababa

Exemption from Exemption from

1.6.4 Manufacture of other paper products income tax for 1 income tax for 2
year years

Not eligible for Not eligible for

1.7 Printing Industry income tax income tax
exemption exemption

1.8 Chemical and Chemical Products Industry

1.8.1 Manufacture of basic chemicals (including
ethanol) Exemption from Exemption from
income tax for 5 income tax for 6
l.8.2 Manufacture of fertilizers and/or nitrogen years years
compounds
1.8.3 Manufacture of plastics and/or synthetic rubber
in primary forms Exemption from Exemption from
income tax for 3 income tax for 5
1.8.4 Manufacture of pesticides, herbicides or years years
fungicides
1.8 .5 Manufacture of paints, varnishes or similar
coatings; printing, writing and painting inks and · Exemption from Exemption from
mastics income tax for 2 income tax 1'01' 4
years years
1.8.6 Manufacture of soap and detergents, cleaning
and polishing preparations, perfumes and toilet
preparations
Exemption from Exemption from
1.8.7 Manufacture of man-made fibers income tax for 5 income tax for 6
years years
1.8 .8 Manufacture of other chemical products Exemption from Exemption from
(propellant powders, explosives, photographic income tax for 2 income tax for 3
films and similar products) years years
1.9 Basic Pharmaceutical Products and
Pharmaceutical Preparations Industry
Exemption from Exemption from
1.9.1 Manufacture of inputs of basic pharmaceutical
income tax for 5 income tax tor 6
products and pharmaceutical preparations
years years
Exemption from Exemption from
1.9.2 Manufacture or formulation of pharmaceuticals income tax for 4 income tax for 5
years years
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette -

No.4 November 29 th 2012 Page 6657
I

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
' )romia
surrounding
Addis Ababa

1.10 Rubber and Plastics Products Industry

Exemption from - Exemption from

1.10.1 Nlanufacture of rubber products income tax for 3 income tax for 5
years years

1.10.2 Manufacture of plastic products used as inputs

for construction of buildings, vehicles or other Exemption from Exemption from
industrial products; plastic pipes or tubes and income tax for 4 income tax for 5
fittings used for irrigation and drinking water years years
supply as well as for sewerage system

;~c\ Exemption from Exemption from

1.10.3 Manufacture of other plastic products
income tax for 1 income tax for 2
excluding plastic shopping bags
year years

1.11 Other Non-Metallic Mineral Products Industry

Exemption from Exemption from

l.11.1 Manufacture of glass and/or glass products
income tax for 4 income tax for 5
1.11.2 Manufacture of ceramic products
years years

Not eligible for Exemption from

1.11 .3 Manufacture of cement income tax income tax for 4
exemption years

Not eligible for Not eligible for

1.11.4 Manufacture of clay and cement products income tax income tax
exemption exemption

Exemption from Exemption from

1.11.5 Cutting, shaping and finishing of marble and
income tax for 1 income tax for 2
limestone (excluding quarrying)
year years

Not eligible for Exemption from

l.11.6 Manufacture of lime, gypsum and/ or similar
mcome tax income tax for 2
coatings
exemption years
 www.chilot.me

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 www.chilot.me

th
Federal Negarit Gazette _ No.4 November 29 2012 Page 6658

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa
Exemption from Exemption from
1.11.7 Manuf<fcture of millstone, glass paper or
income tax for 1 income tax for 2
sound-absorbing or heat- insulating materials year years

1.12 Basic Metals Industry (Excluding mining of the

mineral)
Exemption from Exemption from
1.12.1 Manufacture of basic iron and steel income tax for 5 income tax for 6
years years
Exemption from Exemption from
1.12.2 Manufacture of basic precious and other no n-
income tax for 3 income tax for 4
ferrous metals years years
Exemption from Exemption from
1.12.3 Casting of iron and steel income tax for 4 income tax for 5
years years

1.13 Fabricated Metal Products Industry (Excluding

Machinery and 'Equipment)

1.13.1 Manufacture of structural metal products, Exemption from Exemption from

tanks, reservoirs and co ntainers or steam income tax for 3 income tax for 4
generators years years

l. 13.2 Except corrugated metal sheets for rooting

and nails, manufacture of other fabricated Exe mption from Exemption from
metal products (hand tools , articles and income tax for 1 income tax for 2
similar products) year years

1.14 Computer, Electronic and Optical Products

Industry
Exemption from Exemption from
1.14.1 Manufacture of electronic components and
income tax for 4 income tax for 5
boards years years

1.14.2 Manufacture of computers and peripheral

equipment Exemption from Exe mption from
income tax for 3 income tax l'or 4
1.14.3 Manufacture of communication equipment
years years
l.14.4 I'v1anufacture of consumer electronic
(television, DVD , radio and similar
equipments)
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette -

No.4 November 29 th 2012 Page 6659

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa

1.14.5 Manufacture of measuring, testing, navigating,

control equipment or watches and clocks
Exemption from Exemption from
1.14.6 Manufacture of medical equipment
income tax for 3 income tax for 4
(irradiation, electro-medical or electrot-
years years
herapeutic equipment)

1.14.7 Manufacture of optical instruments or Exemption from Exemption from

photographic equipment income tax for 2 income tax for 3
1.14.8 Manufacture of magnetic and optical media years years

1.15 Electrical Products Industry

1.15 .1 Manufacture of electric motors, generators, Exemption from Exemption from

transformers or electricity distribution or income tax for 4 income tax for 5
control apparatus years years

1.15 .2 Manufacture of accumulators or batteries

,
1.15.3 Manufacture of electrical wires or cables
(including fiber optics) and related products Exemption from Exemption from
income tax for 2 income tax for 4
1.15.4 Manufacture of electric lighting equipment
years years
1.15.5 Manufacture of domestic electrical appliances

1.15.6 Manufacture of other electrical equipment

,

-
- -
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette No.4 November 29 th 2012 Page 6660

I I

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa
1. 16 Machinery/Equipment Industry

1.16.1 Manufacture of general-purpose machinery

(motor, lifting and handling equipments,
pumps and similar) Exemption from Exemption from
1.16.2 Manufacture of special-purpose(for income tax for 5 income tax for 6
agriculture, food processing; beverage, textile years years
and mining production and similar activities)
machinery

1.17 V chicles, Trailers and Semi-Trailers Industry

Exemption from Exemption from

1. 17.1 Manufacture of motor vehicles income tax for 2 income tax for 3
years years
1.17.2 Manufacture of bodies/components for motor
Exemption from Exemption from
vehicles, trailers and/or semi-trailers
income tax for 3 income tax for 4
1.17.3 Manufacture of parts and accessories for
years years
motor vehicles

Exemption from Exemption from

1.1 7.4 Manufacture of rai lway locomotives and
income tax for 5 income tax for 6
rolling stock
years years

Exemption from Exemption from

1.17.5 Manufacture of other transport equipment
income tax for 2 income tax for 3
(boats, bicycles, motor bicycles and similar
years years
equipments)

1.18 Manufacture of office and household furniture

(excluding those made of ceramic) Exemption from Exemption from
1.19 Manufacturing of other equipment Qewellery and income tax for 1 income tax for 2
related articles, musical instruments, sports year years
equipment, games and toys and similar products)

Exemption from Exemption from

1.20 Integrated Manufacturing, with Agriculture income tax for 4 income tax 1'01' 5
years years
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette No . 4 November 29 th 2012 Page 6661

I I

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa

Agriculture

2.1 Crop Production

2.1.1 Annual Crop Production

Not eligible for Exemption from

2.1.1 .1 Growing of cereals, leguminous crops
income tax income tax for 3
and/or oil seeds and rice
exemption years

Exemption from Exemption from

income tax for 3 income tax for 4
2.1.1 .2 Growing of vegetables and/or herbs
years years

Not eligible for Exemption from

2.1.1.3 Growing of fiber crops income tax income tax for 5
exemption years

2.1.1.4 Growing of other annual crops (animal Exemption from Exemption from
feed, medicinal crops, aromatic, income tax for 2 income tax for 3
spices and similar~ crops) years years

Exemption from Exemption from

2.1.1 .5 Production of certified seed income tax for 3 income tax for 4
years years

2.l.2 Growing of Medium -Term Crops

2.1.2.1 Growing of flowers

Exemption from Exemption from
2.1.2.2 Growing of medium-term fruits income tax for 3 income tax for 4
(strawberry, blueberry and similar years years
crop~ ,

2.1 .2.3 Growing of medium-term spices,

Not eligible for Exemption from
aromatic and/or medicinal crops (hulu,
income tax income tax for 4
curmuma, black pepper and similar
exemption years
crops)
 ~I
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 www.chilot.me

Federal Negarit Gazette _ No . 4 November 29 th 2012 Page 6662

In Addis
Ababa and
No. Investment Areas Special Zone of In Other A reas
Oromia
surrounding
Addis Ababa

2.1 .3 Perennial Crops Production

2.1.3.1 Growing of perennial fruits (mango,

avocado, banana, orange, papaya, grapes, Not eligible for Exemption from
passion fruits and similar crops) income tax income tax for 5
2.l.3.2 Growing of beverage crops (coffee, tea exemption years
and similar crops)

Not eligible for Exemption from

2.1.3.3 Growing of other perennial crops (rubber
income tax income tax for 6
I
tree, palm, jatropha, and similar crops)
exemption years

2.2 Animal Production

Exemption from Exemption from

2.2.1 Farming of domestic animals and production of
income tax for 3 income tax for 4
milk, eggs, raw wool and similar products
years years

I Not eligible for Exemption from

2.2.2 Farming of wild animals and production of
, milk, eggs and similar products
income tax
exemption
income tax for 3
years
t Exemption from Exemption from
2.2.3 Farming of bees / production of honey income tax for 2 income tax for 4
years years

2.2.4 Production of silk Exemption from Exemption from

income tax for 3 income tax for 4
2.2.5 Fish farming in artificial ponds (aquaculture) years years

Exemption from Exemption from

2.3 Mixed (crop and animal) farming income tax for 3 income tax for 4
years years

Exemption from Exemption from

2.4 Forestry income tax for 8 income tax for 9
years years

Information and Communication Technology

Exemption from Exemption from
Devel opment in areas to be determined by directi ve to be
3 income tax for 4 income tax for 5
issued by the Ministry of Communication and
years years
Information Technology

.-==========-~=-----
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette -

No.4 November 29 th 2012 Page 6663

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
/
Oromia
surrounding
Addis Ababa
Exemption from Exemption from
4 Electricity generation, transmission and distribution income tax for 4 income tax for 5
years years
5 Hotel and Tourism

Not eligible for Not eligible for

5.1 Star-designated hotel (including resort hotel), motel,
~
income tax income tax
lodge and restaurant
exemption exemption
Not eligible for Not eligible for
5.2 Grade 1 tour operation income tax income tax
exemption exemption
Not eligible for Not eligible for
5.3 Tour operation below grade 1 income tax income tax
exemption exemption
6 Construction Contracting

6.1 Grade 1 construction contracting (including water

well and mineral exploration drilling) Not eligible for Not eligible for
income tax income tax
6.2 Construction contracting below grade 1(including exemption exemption
water well and mineral exploration drilling)

Not eligible for Not eligible for

7 Real Estate Development income tax income tax
exemption exemption
8 Education and Training
8.1 Provision of secondary and higher education by
, constructing own building
Not eligible for Not eligible for
8.2 Provision of kindergarten, elementary and junior
income tax income tax
secondary education by cOI?-structing own building
exemption exemption
8.3 Provision of technical and vocational (including
sports) training service

9 Health Services

\ 9.1 Provision of hospital service by constructing own

building
Not eligible for Not eligible for
9.2 Provision of diagnostic center service by constructing mcome tax mcome tax
own building exemption exemption
9.3 Provision of clinical service by constructing own
building
 www.chilot.me

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 www.chilot.me

Federal Negarit Gazette _ No . 4 November 29th 2012 Page 6664

In Addis
Ababa and
No. Investment Areas Special Zone of In Other Areas
Oromia
surrounding
Addis Ababa

Architectural and Engineering Works, Technical

10
Testing and Analysis

10.1 Architectural and engineering works and related Not eligible for Not eligible for
technical consultancy services Income tax income tax
I
10.2 Technical testing and analysis exemption exemption

Not eligible for Not eligible for

11 Publishing Income tax income tax
exemption exemption

Not eligible for Not eligible for

Capital Goods Leasing, Excluding Leasing of Motor
! 12 Vehicles
Income tax incometax
exemption exemption

Not eligible for Not eligible for

Import Trade
13 Income tax income tax
Importation of LPG and bitumen
exemption exemption

Export Trade

Export trade excluding exporting of raw coffee , ' chat', Not eligible for Not eligible for
14 oil seeds, pulses, precious minerals and hides and skins Income tax income tax
bought from the market; natural forestry products and exemption exemption
live sheep, goat, camel, cattle and equines not raised
by the investor

Wholesale Trade Not eligible for Not eligible for

15 Supply of petroleum and its by-products as well as Income tax income tax
wholesale of own products exemption exemption

I-
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