Ethiopia Offers Tax Relief for Companies Hurt by Virus Fallout

(Bloomberg) -- Ethiopia offered tax relief to companies affected by the fallout from the coronavirus, state television reported, citing the finance minister.

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, the Ethiopian Broadcasting Corporation reported, citing Eyob Tekalign, the State Minister of Finance. 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.

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