ADDIS ABABA – Ethiopia offered tax relief to companies affected by the fallout from the coronavirus, according to Ministry of Finance.
Interest payment and penalties on outstanding taxes due between 2015 and 2018 will be canceled outright and the underlying tax due can be paid in installments, told finance minister Eyob Tekalign told state-run EBC.
In Mid-April, a top official of Hotel owners association told Ethiopian Monitor that they received a “positive response” for their debt relief request to ease the impact of the virus in the sector.
The finance ministry now announced firms affected by the Covid-19 will also get relief for four-month of income tax.
The government will also grant a one-month grace period on payment of value-added and turnover tax payments.
Firms that pay their tax in a lump sum will receive a 10% discount and there will be as much as 20% discount for companies donating to the Covid-19 response, EBC reported.