By Mahlet Mesganaw, Partner at DMLF
The Ethiopian government has issued Council of Ministers Investment Incentive Regulation No 517/2022 (the Regulation hereafter) to be effective from the date of publication in the Federal Negarit Gazette. The Regulation contains six parts and a schedule( Investment Areas and Income Tax Incentives Schedule). The first part of the Regulation covers definitions and scope of the Regulation. As such the Regulation extends to investment areas eligible for incentives including mining, petroleum and geothermal sectors. The second part of the Regulation deals with income tax exemption incentives. Such incentives are available for investors from the date of obtaining business license or from the date of expansion permit, as provided in the schedule attached to the Regulation. Part three of the Regulation provides for procedures that allow investors to import duty free capital goods, construction materials and motor vehicles free from custom duties. The fourth part of the Regulation deals with incentives for mining investment, petroleum and geothermal works. The fifth part contains duties and responsibilities of regulatory institutions in implementing the Regulation. The final part i.e. part six provides for miscellaneous provisions of who has power to issue directives, transitory provisions and repealed laws.
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