Title: The taxation of income from technical services under the Federal Income Tax Proclamation of Ethiopia: income labelling and tax jurisdiction issues

Authors: Yibekal Tadesse Abate

Addresses: School of Law, Bahir Dar University, Bahir Dar, Ethiopia

Abstract: Income obtained from a rendering of technical services would be taxed under different schedules as a particular item of income. Consequently, the characterisation of income is critical as it determines which tax rule applies to each item of income. However, the login details, pertinent to labelling income from technical services into a particular item of income, are not specific under the law. Also, the rules regulating taxation power over each kind of income of technical service needs a close scrutiny. The article aims at discerning the login details applicable in labelling income from technical services to catalogue to the domains of individual schedule. It also aims at identifying the conditions of tax jurisdiction over each item of income of technical services. The article reveals that an ambiguity in the language of definitions and the uncertainty of the scope of each income makes the taxation of income from technical service perplexing.

Keywords: technical fee; technical service; income characterisation; income tax; Ethiopia.

DOI: 10.1504/IJPLAP.2023.131990

International Journal of Public Law and Policy, 2023 Vol.9 No.3, pp.219 - 238

Received: 10 Feb 2022
Accepted: 09 May 2022
Published online: 06 Jul 2023 *

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