← Taxation Fundamentals for Ethiopian Businesses: Business Tax Management

Tax Accounting Fundamentals

Module 04 / 6 · 60 min

Keep the records the law requires, book VAT, withholding and income tax correctly, reconcile the books to the returns and run a monthly tax close.

In this module you will learn to

Identify the tax records and source documents each tax requires and how long to keep them
Post VAT, withholding, payroll taxes and income tax to the right accounts
Compute current and deferred tax and explain the effective tax rate
Reconcile tax returns with the accounting records and run a monthly tax close

Built on

Erudite Africa training curriculum: Taxation Fundamentals for Ethiopian Businesses, Level 2 Intermediate, Business Tax Management (October 2026)
Federal Income Tax Proclamation No. 979/2016 as amended by Income Tax (Amendment) Proclamation No. 1395/2025, and Council of Ministers Income Tax Regulation No. 410/2017 as amended; article references for No. 1395/2025 per KPMG, EY, PwC and Grant Thornton summaries
Value Added Tax Proclamation No. 1341/2024, VAT Regulation No. 570/2025, VAT Registration Directive No. 1104/2025, Directive No. 1021/2024 and Electronic Invoicing System Administration Directive No. 1142/2026
Federal Tax Administration Proclamation No. 983/2016 as amended by Tax Administration (Amendment) Proclamation No. 1434/2026, and Penalty Waiver Directive No. 189/2025
Financial Reporting Proclamation No. 847/2014, Private Organization Employees' Pension Proclamation No. 1268/2022 and Investment Incentive Regulation No. 586/2026

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.