ETHIOPIA PROPOSES SIGNIFICANT AMENDMENTS TO THE TAX ADMINISTRATION FRAMEWORK

Ethiopia is currently considering sweeping amendments to its Tax Administration framework through a draft amendment to the Tax Administration Proclamation. The proposed reform introduces substantial procedural, compliance, evidentiary, enforcement, and dispute resolution changes that are expected to significantly impact taxpayers, businesses, financial institutions, and tax practitioners operating in Ethiopia. If enacted in its current form, the draft amendment would represent one of the most consequential developments in Ethiopia’s tax administration regime in recent years. The proposed reform signals a clear policy direction toward stricter tax enforcement, enhanced digitalization, stronger accountability mechanisms, and more structured dispute resolution procedures.