Ethiopia Proposes Criminal Penalties for Businesses Failing to Issue Receipts

June 5, 2026

Mintesinot Nigussie

Businesses in Ethiopia could face criminal prosecution for repeatedly failing to issue legal receipts under a revised tax administration draft proclamation submitted to the House of Peoples’ Representatives, as authorities move to tighten enforcement against tax evasion.

The proposed legislation would impose an administrative penalty of 100,000 birr for every transaction conducted without a legal receipt.

Repeat offenders penalised twice within a year could face criminal liability if authorities determine the violations were intentional and continued despite earlier sanctions.

The draft also extends accountability to company executives. Managers could be held personally liable where they are found to have participated in the offence or failed to establish internal monitoring systems.

Alongside stricter penalties, the proposed amendment would significantly expand the powers of revenue authorities by allowing them to reopen taxpayer records and conduct audits covering up to 10 years after taxes were paid.

The proposal would allow authorities to reassess tax liabilities and impose additional payments within that period following audits or financial reviews.