Federal Democratic Business Income Tax Declaration-

Republic of Ethiopia
Ministry of Revenue (With Annex)
Federal Inland Check Status:
Revenue Authority Schedule C Business Income Tax
Mining Income Tax
Section 1 – Taxpayer Information
1.Taxpayer’s Name (Company Name or Name, Father’s Name, Grandfather’s 3. Taxpayer Identification 8. For the Year of: Page 1 of
Name ) Number
___

2a. Region 2b. Zone/K- 4. Tax Account Number Document Number (Official Use
Only)

2c. Woreda 2d. Kebele/Farmers Association 2e. 5. Tax Center

House Number

6. Telephone Number 7. Fax Number

Section 2 – Income Tax Declaration

Income and Cost of Goods Sold
1 Business Income or Sales/Turnover (Transfer from Annex 1) 5 0
2 Non Operating and Other Income 10
3 Total Gross Income (Add lines 1 and 2 and Enter Total at Right) 15

4 Cost of Goods Sold / Direct Cost of Services (Transfer Total from Annex 2) 20

5 Gross Profit/Loss (Line 3 minus Line 4) 25

Business Expenses
6 Selling and Distribution Expenses (Transfer from Annex 4) 30
7 Salary and Wages 35
8 Other Employee Benefits 40
9 Repair and Maintenance Expenses 45
10 Investment/Participation Expenses 50
11 Foreign Technical Services Expenses 55
12 Utilities Expenses 60
13 Travel Expenses 65
14 Rent Expenses 70
15 Interest Expenses 75
16 Depreciation Expenses 80
17 Amortization Expenses 85
18 Deductible Taxes and License Fees 90
19 Deductible Donations and Gifts 95
20 Other Deductions (Transfer Total from Annex 5) 100
21 Total Expenses (Add Lines 6 through 20 and enter total) 105 0
Calculation of Tax Due
22 Net Income/Loss (Line 5 minus Line 21) 110
23 Loss Carry Forward from Previous Period (From Annex 6) (refer the instruction) 115
24 Carry Backward Loss Adjustment (Attach Supporting Document & Refer Instructions) 120 ********************
25 Taxable Business Income (Line 22 minus (Line 23 plus 24) 125

26 Income Tax Payable (Line 25 X Schedule C Tax Rate) 130

27 Foreign Tax Credit (Transfer Total from Annex 7) 135

28 Withholding Tax (Attach Schedule on Import and Payments) 140
29 Total Credits (Line 27 plus Line 28) 145
30 Net Tax due / Refundable Amount (Subtract Line 26 from Line 29) 150

Taxpayer or Authorized Agent Seal For Tax office use only Seal of tax
Name___ __________________________ Name______________________________ office
Signature_______________________ Signature __________________________
Date ____________________ Date_____________________

Ministry of Revenue Page 1 of 3 (as of 08/07/06) FIRA Form 1301 (1/2006)

 Section 3- Annexes for Business Income Tax

Taxpayer Information
1. Taxpayer’s Name (Company name or name, father’s name & 2. Taxpayer Identification Number 3. For the Year of:
grandfather’s name)
Annex 1 – Business Income or Sales/Turnover
a. Seq
Num
b. Type of Income c. Amount
1 Local Sales
2 Export Sales
3 Service Income
4 Total (Add Line 1 through 3 - Enter total amount on Line 1 of Tax Declaration (Form 1301))
Annex 2 – Cost of Goods Sold/Direct cost of services
a. Seq
Num
b. Type of Cost c. Amount
1 Beginning Inventory
2 Cost of Purchase/Cost of Finished Goods/Direct Cost of Services (From Line 19 of Annex
3 below)/
3 Goods Available for Sale Direct cost of services (Add Lines 1 & 2)
4 Ending Inventory
Cost of Goods Sold/ Direct cost of services (Line 3 minus Line 4) - Enter this amount on Line 4
5
of Tax Declaration (Form 1301))

Annex 3 – Cost of Finished Goods/Direct Cost of Services

a. Seq
Num
b. Type of Cost c. Amount

1 Beginning Work in Process

2 Cost of Direct Materials

3 Cost of Direct labor

4 Cost of Indirect Materials

5 Cost of Indirect Labor
6 Power
7 Depreciation Expenses
8 Supplie
9 Employee Benefits
10 Repair & Maintenance expense
11 Insurance expenses
12 Airfare, Transportation & Freight expenses
13 Accommodation & Hotel Expenses
14 Excise Tax
15 Other Expenses
16 Total Over Head Costs (Add Lines 4 through 15)

17 Total Cost of Manufacturing/Direct cost of services (Add Lines 1, 2, 3 and 16)

18 Ending Work in Process

19 Total Cost of Finished Goods/Direct Cost of Services (Line 17 minus Line 18) - ter Total amount on
En Line 3 of Annex 2 Above)
Annex 4 – Selling & Distribution Expenses
a. Seq
Num
b. Type of Expense c. Amount
1 Salaries, Wages and Related Benefits
2 Repairs and Maintenance expenses
3 Fuel and Lubricants expenses
4 Travel, Accommodation & Transport expenses
5 Advertisement expenses
6 Commission expenses
7 Insurance expenses
8 Clearing, Transit & Other Related Expenses
9 Other Expenses
10 Total (Add Line 1 through 9 - Enter Total amount on Line 6 of the Tax Declaration (Form 1301))

Ministry of Revenue Page 2 of 3 (Draft as 08/07/06) FIRA Form 1301 (2006)

Business Income Tax (Section 3 – Annexes continued)

Taxpayer Information
1. Taxpayer’s Name (Company ) 2. Taxpayer Identification Number 3. For the Year of:

Annex 5-Other Deductions

a. a.
Seq
b. Account Description c. Amount Seq
b. Account Description c. Amount
Num Num

1 10
2 11
3 12
4
5
6
7
8
9
Sub-Total Total (Enter Total amount on Line 20 of Tax
Declaration (Form 1301))
Annex 6 – Loss Carry Forward from Previous Tax Period
(Validity of Loss for Schedule C Normal is 3 Years; for C Mining it is 10 Years)
a. Year b. Profit / Loss Amount c. Loss Applied d. Loss Carry-Forward e. Remarks

Transfer Total of Column d to Line 23 of Tax

Declaration, Form 1301
Annex 7 – Foreign Tax Credit
a. d. Amount of Foreign
Seq b. Name of Foreign Country c. Foreign Income Tax Paid/Payable e. Remarks
Num

Total (Enter Total amount on Line 28 of Tax Declaration

(Form 1301))

Section 4- Attachments
- Balance Sheet - Selling & Distribution Expenses
- Profit & Loss Statement - Provisions & Reserves
- Source & Application of Fund - Gross Profit & the Manner in which it is Computed
- Fixed Asset & Depreciation Schedule - Statement of Goods Manufactured and/or Cost of Goods Sold
- General & Administrative Expenses
Section 5 - Taxpayer Certification
I declare that the above declaration and all information provided here-with is correct and complete. I understand that any
misrepresentations is punishable as per the tax Law and the Penal Code.
Name of Taxpayer/ Authorized agent For Official Use Only
------------------------------------------------------------------------------------ Seal Date of Payment Receipt Number
(Taxpayer)
Signature -------------------------------------Date-------------------------

Authorized Tax officer Amount of Payment Cheque Number

Seal (Tax Name------------------------------------------------------------------------------

Office) Cashier’s Signature
Signature -------------------------------------Date-------------------------

Ministry of Revenue Page 3 of 3 (Draft as of 08/07/06) FIRA Form 1301 (1/2006)

Instructions for Schedule C & Mining This form complies with the rules established in the
Income Tax Proclamation No. 286/2002. Specific
(Form 1301)
references to business income are included in Section
Business Tax Declaration and Annexes IV of the Proclamation, Schedule ‘C’
Income/Business Income Tax. Paragraph 18 states,
“Taxable business income shall be determined per tax
period on the basis of the profit and loss account or Line 24, Carry Backward Loss Adjustment, should
income statement, which shall be drawn in compliance NEVER be filled in when this form is filed. If in future
with the General Accepted Accounting Standards, years a carry back loss is approved, a Tax office
subject to the provisions of this proclamation and the representative will make the appropriate entries and
directives issued by the Tax Authority.” recalculations.

This form may be used for most normal business Tax Rate on Income of bodies is thirty percent (30%) of
enterprises. If you are in the mining business, you taxable income. Tax rate on income of persons is
may use this form but you must check the “Mining” according to the schedule below.
box at the top of the form. Non-mining business
enterprises should check the “Normal” box. If you are Schedule “C” Tax Rate on Persons
in the “rental” business, you are required to complete
the Rental Income Tax Declaration, Form 1201.
Rental Income is covered under Schedule B of the Over Birr To Birr Tax Rate Deduction
Proclamation. 0 1,800 Exempted threshold
In addition to the Business Tax Declaration, you must 1,801 7,800 10 % 180
complete and file a Balance Sheet, Form 1302. At the
7,801 16,800 15 % 570
top of the Balance Sheet mark whether you are filing it
for a Schedule “C”, Mining or Rental Tax. 16,801 28,200 20 % 1,410
28,201 42,600 25 % 2,820
Should there be any discrepancy between these 42,601 60,000 30 % 4,950
instructions and the Proclamation, the language of the Over 60,000 35% 7,950
Proclamation shall take precedence.
Calculation Table – Determine which range bracket
Section 1 – Taxpayer Information 1 your taxable income on Line 25 falls within, multiply by
Name – Enter the name of enterprise or for individual the percentage shown in the Tax Rate column and then
taxpayer including given name, father’s name and deduct the amount in the “Deduction” column. For
grandfather’s name. example, if your taxable Business Income on Line 25
2 Address – Enter all information necessary to for the year is 45,000 birr, you would go to the 6th row
identify the location of your residence. If your address (42,601 to 60,000 birr) and multiply your taxable
has changed since your last filing, contact your Tax income of 45,000 birr by the tax rate of 30% and then
Office. subtract the 2,820 birr shown in the Deduction column.
3 Taxpayer Identification Number (TIN) – (45,000 birr x 30% minus 4,950 birr equals 8,550 birr).
Every person having a tax responsibility is required to
have a TIN and to enter it with each filing. See Income Tax Rate for Mining: - A holder of large-scale or
Tax Proclamation no. 286/2002, paragraphs 43, 44 smallscale mining license shall pay 35 percent (35%)
and 90. 4 Tax Account Number (TAN) – This income tax on the taxable income. (Proclamation No.
number is provided by the Tax Authority and must be 23/1996)
entered each time a Personal Income Tax Return is
filed. If you have not been issued this number, contact Section 3 – Annexes
Tax office. 5 Filing Month and Year – Enter year for The Annexes should be complete prior to completing
which you are filing this Declaration. the tax declaration section. If additional lines are
6 Tax Center– Enter name of Tax office where you needed to complete any Annex, attach an additional
are registered. sheet with that contains the same information as
7/8 Telephone and Fax Numbers – If more than one, required in the Annex. Be sure to enter your name or
enter contact numbers for person authorized to sign company name and Taxpayer Identification Number
this form. and identify the number and name of the annex at the
top. Enter totals from the annexes on the next to last
Section 2 - Tax Declaration line (just before the TOTAL line) in the appropriate
Income and Cost of Goods Sold/Direct cost of annex. Be sure to attach your extra sheets to the Tax
services – Prior to completing this section, complete Declaration.
Annexes 1, 2 and 3. Enter the totals from these Section 4 – Taxpayer Certification
annexes 1 and 2 on lines 1 and 4.Then complete the The form must be signed and dated by the taxpayer or
required calculations. the authorized Agent at the bottom of page 3. If you
need a copy of the Declaration, you should make this
In the Business Expenses section, enter your before submitting your tax declaration.
documented expenses since the beginning of the
period. In order to do this you will also have to
complete Annexes 4 and 5. Then enter the total from
the sheet you are attaching on the line provided in the
annex. In case of an audit, you will be required to
provide receipts or other written and verifiable
documentation to prove your actual expenses.
The Calculation of Tax Due section requires
information from Annexes 6 and 7. After this data is
entered, follow the calculations specified on the form.
Use the Schedule C tax table below to calculate the tax
on line 26.

Loss may be carried forward where the books of

account showing the loss are acceptable by the tax
Authority. (Income Tax Regulations No. 078/2002)