Wednesday, December 22, 2010

Addis Rent House owners must register, pay tax

(Dec 23, 2010, Capital)--Dwellers in Addis Ababa who generate income from business or residence rental houses have been ordered by the Ethiopian Revenue and Customs Authority (ERCA) to report their revenue and pay relevant taxes.

Tax collection from landlords who rent their private homes has remained negligible while the number of rental houses has increased tremendously, due to the persistent housing problem of the city, and the authority hopes to reverse this.

The revenue office is working to incorporate people who rent their houses into the tax network, just like other businesses.Ephrem Mekonnen communication manager of ERCA told Capital that the authority has given a 90 day window for renters to report their revenue and number of rental houses they have.

“To encourage the registration we have lifted the back tax payment that was expected from renters,” Epherem said.Over the past few years the government has been working to expand income collected from tax. At first ERCA was focusing on the business community to increase its tax revenue but now it is expanding to other income generating sectors of the society.
Source: Capital

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