← Taxation Fundamentals for Ethiopian Businesses: Strategic Tax Management

Tax Due Diligence

Module 02 / 6 · 65 min

Check your own company with a tax health check, rate tax risks in a register and examine an acquisition target before you sign.

In this module you will learn to

Distinguish a tax health check, an acquisition tax due diligence and a compliance review
Run a tax-by-tax health check with reconciliations between accounts and returns
Rate tax risks by likelihood, amount and evidence and build a risk register
Turn due diligence findings into price adjustments, indemnities, escrows and conditions

Built on

Erudite Africa training curriculum: Taxation Fundamentals for Ethiopian Businesses, Level 3 Advanced, Strategic Tax Management (October 2026)
Income Tax Proclamation No. 979/2016 as amended by No. 1395/2025; Federal Income Tax Regulation No. 410/2017 as amended (2021); Transfer Pricing Directive No. 981/2024
Council of Ministers Investment Incentive Regulation No. 586/2026; Investment Proclamation No. 1180/2020; Special Economic Zone Proclamation No. 1322/2024; Directive No. 1064/2025
Federal Tax Administration Proclamation No. 983/2016 as amended by No. 1434/2026; Penalty Waiver Directive No. 189/2025; VAT Proclamation No. 1341/2024; Electronic Invoicing System Administration Directive No. 1142/2026
Capital Goods Leasing Business Proclamation No. 103/1998 as amended by No. 807/2013; Stamp Duty Proclamation No. 110/1998 as amended
Practitioner summaries of the 2025 and 2026 changes (PwC, KPMG, EY, Grant Thornton Ethiopia, 5A Law Firm, Ethio Alliance) where the gazetted text could not be read, as noted in the lessons

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.