Ministry of Revenue Orders Advance Q1 Profit Tax Payment for Category “A” Taxpayers

• Ministry of Revenue Adama Office issued notice on advance business profit tax payment.

• Notice concerns first quarter of 2018 Ethiopian fiscal year.

• Cites Income Tax Proclamation No. 1395/2017, Article 89/2/A.

• Category “A” taxpayers must pay quarterly advance within 30 days after each quarter.

• First installment equals 25% of 2017 tax paid.

• Payment to be declared electronically via eTax under “Advance Quarterly Payment Advice–Schedule C.”

• Late payment subject to interest and penalties.

Why it matters?
Advance quarterly payments affect cash flow planning for large taxpayers and increase short-term government revenue collection.