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FEDERAL NEGARIT GAZETA
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

{}lI"'~ qaD.} ch'l'C ~?; 7'h Year No. 36

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ADDIS ABABA - 29'hJune, 200 I
f ,n1NI .,'milf,:-r. 9"hc o..} mll<tH' fmflJ

O?~~ CONTENTS
fO'/.~{)'1.C':-r. 9Uhc 0..1. .V,,}-fIcJ:'rC ~t./nH~:H: q.9". Council of Ministers Regulations No. 75/2001
h,,'h.,..e. y"".n t\.e. °NIC c/>,}{\ 10. fO'/.f:l."l'} P'Cq..,. Tax Withholding Scheme Application Council of
'h~.1.O'/,"'1' t\clDm{}'} fm"} fO'/,~{)'1'C':f' 9uhc o..}. Ministers Regulations Page 1544
Y,,}-fI 1;r l!if.t.f.~~

fO'/.~{)'1'c.':-r. 9uhc o..} .V,,}-fIch'l'C ~t./nH~:H: q.9" COUNCIL OF MINIS1ERS REGULA TIONS NO. 75/2001
h,,'h e. y"".n t\.e. °1-flC c/>,}{\1ft fO'/.f:l.°l,} P'Cq.},
COUNCIL OF MINIS1ERS REGULA TIONS TO
'htIJO'/."'}' t\aom{}'} fmflJ fO'/.~{).h~':f' 9uhc 0...,. Y,,}lI
PROVIDE FOR THE APPLICA TION OF
fO'/.~{)'}c.':f' 9uhc o..} f~\,'}f'A'.f &o~ot,t\tf Jt qoht, TAX WITHHOLDING SCHEME
f't,.ftf ~T.nfLh ~,{)&.1.O'/.fiilt\.}'} p'A,,}'}ei ."olllC t\aom{}'} These Regulations are is'sused by the Council of Ministers
{}m"}m, ~,CP:~ 'h1'C !~/:mf.'i{-?~ ~,,}4'~' ?; },c; hO'/C;:':m'9u 10. pursuant to Article 5 ofthe Definition of Powers and Duties of
°NIC t\O'/{)h&,A nmflJm. (0I17"7"!) ~,q>~ 'h1'C ~f.?;-?;/Ii!f.1[ the Executive Organs of the Federal Democratic Republic of
~,,}c/>~' if! (elt) aoll'l.'}' .e.u'} y,'}.{} ~,m'1':I:A:: Ethiopia Proclamation No. 4/1995 and Article 40(c) of the
Income Tax (Amendment) Proclamation No. 227/2001.
li' ~,6I!'C e/){)
J. Short Title
.e.u Y,'}.n "h,,'h.,..e. Y."HI. t\.f. °NIC 4',}{\ 10. fO'/Y:l."l,}
These Regulations may be cited as the "Tax Withholding
P'Cq.} "'&,1.0'/. ".}, t\aom{}'} fm"J fO'/,~{).},C':-r, 9uhc
Scheme Application Council of Ministers Regulations
o..}, .V,,}1} 'he.,C
~t.n:!!tH~" ""Ot\" fLmc/>{) .e.:-r.t\A:: No. 75/2001".
~. °NIC c/>,}{\ 10, fO'/.r.:l.°l P'Cq.1' "'&"'0'/. fO'/.If,}lI:t:m' 2. Tax Payers to Which the Withholding Scheme
°1-flC h.,.f-'.f, is Applied
Y,l.:6,'"u" °NJC h.,.f.'.f, : f ~nol {}m'''.1' ao-fl"" f"'{}flJ:':m.
Category "A" taxpayers. organizations having jurdical
.r.:C~'f':}": f CID1.II/""} ao / 0.'" :-r.; t\ .}cc~ .f A "'**00- personality. government agencies, private non profit
fOlA .r.:C:~'f':}" },c; ao'}olP':J'tf .fAln- f.:C~.y.:-r. hltU institutions, and non-governmental organizations shall,
n:J':-", f'''''l.fI~..1''} fi'IA °1t\".f,:-r,C;/):p?,:-r. t\O'/.!c/>C0' pursuant to Article 40(c) of the Proclamation, withhold
income tax of 5% from payements they make to tax
°NIC h".f':}" hO'/.&.f)llD'.}'0'/C;:,:m'9° hC~.f t\f. nfi q>~
payers providing the following services and goods:
fi,}c/>~'~; (elt) aolJ.'l.'}?; TC{},}'} (fi9U{).), nao.,,) f,}"lf.:
.}cc~ °NIC c/>'}{}m,.f{)c/>t,t\,: 1) Consultancy service;
2) Designs, written materials, lectures and dis-
?i' h9°hc kIAolt\":t-: semination of information;
~. h.&;,"Y-,'}p'/,-?,'.f, : hf)~It.(.::f. : h'}9uUC'} 1t\,?,:-r.
},li CIDI.:~''}hOlIIl,'/,.(;b1.'} p'/',?':f':

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2'30
Unit Price NegaritG.P.O.Box 80,001
 '1)1,- Iii'!:?;)';';?; 6...1'../.-/:\ ":J/.:" :J//."I '1:'I'c ,!.i,!;M. ?!!~ 'I'') :W)::ii: ,.,... Federal Negarit Gazeta - No. 36 29th June, 200 I-Page 1545

I" hml),Y.',}", : h,/.,,,'I) /1t\IID'.rSJ':}": hl,,~.'1'l~1' 'hCi 1\.t\"1' 3) Lawyers, accountants, auditors, and other services of
"'(101) I)g~ kl A "It\".y:.}'.'} hD?Jlm, (a9".}'.li .1':C~"'1'; similar nature;
IJ. '{i.rbl!' htl\/.,rhli(l)'~, ,,../...,.1f:Y' : f~,'IA"It\".} hr.:! (alllt 4) Sales persons, service fee collectors, arts and sports,
(UP',)". ~ T{~.t.:{iliA fh. '!'I).nei fft;I'C'} [)t\OO'!9'1' ;
" professionals, entertainers, any broker including
f~,:}ir,(,:i{I i'j(,Ll.:}'.'}
/'t\.lt f,L1.S'''(~ hOlj'g:(I)'9° 1AI\ 'hCi insurance brokers and other commission agents;
lI,lI':'}",}" ftll1'1.'{i'} mh.lI":}": 5) Advertisements and entertainment programs for
(;. IH:lI,ii.:)''''Pi nl.,,~.f' hD?"'I\t\~. (I'Ift:J'm,~.rsP1' 'hCi
television and radio broadcasts;
f(lfJ'Wi<;: 'II"(C';'Y:'}',:
6) Construction services;
7;- t\r/.- (1'~':/.-{,"I;.}'.h°'l.ht,AfkIA"/lI":" q>;J:
7) Advertisement services;
i 'j,' h(l~l1:hf)":J' ~,'I A "Ill"')':
,8) Patents for scientific and intellectual works;
~I;' h"/.e.'i{I "I;~'Y:'}""1,1;ft.m/., (I)'rn.'Y:'}" '1t\oo'fH''''}':
9) Rent or lease of equipments induding computers,
ji' tl'}"'C(l)..,.{~"'}""} f,L},'}"(~' : h.,.t\.rf. 110"'I..r9':}": dt'}~
I .'
9):t"i lI,lI":}" tJ.<P9"'}';h./..,e.:
buildings and other goods;
10) Maintenance services;
'J' h""lli kl A "/lI":1-:
m,'}.~' '1.11,"1:)'" h.I)C :( i'i. flI\,e. t\1I''' fiJ,4> J\~Cfl~'
I 1) Supply of goods involving more than Birr 10,000 in
Xfi'
hO'J.t.o,)" ~Jll:.r:: anyone transaction.

t. "I.n.;:} ""}II 'If 1. (1'1,l':I. "I J't\fI:" (am. m,e.9u .l',:C~'} 3. Obligations of Withholding Agents
"I!!..:,. Any person or organization who, by law, is required to
tllUI 1lI\,l'. m,'}<I'X' ~ t\"'/lI.II ). J\'IA"It\".y.:f.Ci iJ:l'sP1' withhold tax from persons and organizations supplying
tI11'1./..09" ~I(':J' I\g~ "HIC "''}(t '''1. O'J,l',:I."1!t\fH' (am' the services and goods listed under Article 2 above shall
mg.')" J':C~{);:" ft''I.\1'I.t\.:,. "/1..:"9"1' .e.liC;.fI:J'A; have the following obligations:
?!' "I-/IC lI""""(aIH. (a(I). (I),e.9U .1':C~'} "'h:J.:J.,e I) issue serially numbered official receipt to persons
"~'!'C ,rt\(I)' I'),:J(/~J'.I.(a;~ ,e.(an}A:: and organizations from whom tax is withheld;
~, ~I(I:,<'"'I't.OllDt\..,..} f"l,.r'}p,'}p,. '} (am. m,e.9° y.:C~')' 2) fill in a form to be supplied by the revenue authority
ft'J" "1,ti '(r/., ~,.l':/..i'i : f",.,IC hti.,e. rlDt\! 'h'J'c;.'} : the name, tax payer identification number (if such
(\"""m tun) flm';. (I).ft.!, t\.hn4'(am. (am. m,e.9° TIN is supplied) of a person, or organization to
.l':C::c>'::" f"'h/..t\(I)") 'l'}/I'fI ~\ln:l'I\,e. .l',:9°C : 'whom payment is made, and the total amount of
",,"li'{j \""J'. 1.'1(I).') "1.flC AtJ : flfm.;. h"/llC money paid and tax withheld;
~,:)',n.m' l)t\rAnJ'} flOIJ.(am(l)' :"?t. qOA.Y. 3) Person and organization withholding the tax shall
J',,'e:q A::
transfer to the revenue authority the amount withheld
I:' 11(11<,. (II.ft'!' h.HI!..t\. 'l"U1".}'.I\,e. .,..,,'}(I 4'1. 001./.'"
within the month, together with the form indicated
\J(I'/:,q(ll"} i',m:"I\,l'. '/."HI hllH nl\,e.fI'}o,{} J\'}4'1.'
under sub-Article (2) above.
00 !I'I'II"t\h"'(I)' :"",. :JC t\",.,I.;. /1t\P'AnJ'} 1ft
.r.l'.{:: I A::
ij. 4. Obligations of the Federal Inland Revenue Authority
f/ l'../.,A i,'Ie: (I).ft.!, 'I fl. /1t\P'AnJ') "/J'..:J'
The Federal Inland Authority shall:
'(/ l'../.-A i','IC (I).ft'l' '1£1. /1t\P'AnJ'):
I) Prepare and distribute the form mentioned under
?!. 1II/.1I .l':HI ~,'}<I'X' !: (~) f"'(IDt\h.f.m.'} :"?t. Article 3(2) above.
i,II:':{);'Y' ,r,"'/.J"'},A:: 2) On the basis of information received from regional
i{. II),AA f"I'IIe: i,ft'U1. "t\rAll,,;,',}', fD?.('.C(am.'}
tax authorities; increase the list of services and goods
(1"13:' 011",/.:,- n(l'/.~'I."I h"'hti..l', '/,",.,1 I\r~ "I1IC from which tax shall be withheld.
""',tni r(l'/'y. 1."1IJ:':(I).') \' P' /., liCe:::}" 1/C1'C 5. Effective Date
J'i'i'{j 1\A::
These Regulations shall come into force as of the 8111 day
(;, .(':H" '(t''I.Win.'" '1./1. of July 200 1.
,l',U .(':HI t'th'}"lI, ?!''''i 'qn~~H' t~.'J" :{):'J"{~''(Wi ,e.W(iA::
Done at Addis Ababa, this 29thday of June, 200 I.
i'"ltft ~,n'l M. :?;-i{'I") '1!i\~~O:(~,').. "-
MELES ZENA WI
II" 1\il II.ti'e PRIME MINISTER OF THE FEDERAL
fh.:I'\"A-.(' /...Y../..I\te .1~.'/II)I/..,tJJ"~ I.T'/Jt\JJ DEMOCRATIC REPUBLIC OF ETHIOPIA
III:"I\,l', "'O.ft 'le:

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!!i;LI-:1!.\"E~.\ SEL.~M PRINTING ENTERPRIS