Taxes

1. What corporate tax incentives are available to pharmaceutical manufacturers that invest in industrial parks?

The following tax holidays are available to pharmaceutical manufacturers in industrial parks. These tax incentives do not apply to pharmaceutical manufacturers operating outside of industrial parks.

Formulation/final medicine production inside of industrial parks
In Addis/surrounding areas Outside of Addis/surrounding areas
Base 6 years 8 years
30% export (in terms of value, successively for 3 years) + 2 years + 2 years
60% export (in terms of value, successively for 3 years) + 2 years + 2 years
TOTAL Up to 10 years Up to 12 years

 

Active Pharmaceutical Ingredient (API) production inside of industrial parks
In Addis/surrounding areas Outside of Addis/surrounding areas
Base 8 years 10 years
30% export (in terms of value, successively for 3 years) + 2 years + 2 years
60% export (in terms of value, successively for 3 years) + 2 years + 2 years
TOTAL Up to 12 years Up to 14 years

 

Pharmaceutical packaging production inside of industrial parks
In Addis/surrounding areas Outside of Addis/surrounding areas
Base 3 years 4 years
30% export (in terms of value, successively for 3 years) + 2 years + 2 years
60% export (in terms of value, successively for 3 years) + 2 years + 2 years
TOTAL Up to 7 years Up to 8 years

 

2. What taxes are levied on exports?

There are no taxes levied on exports.

 

3. What taxes are levied on imports?

Pharmaceutical manufacturers are exempted from paying duties and other taxes on the import of capital goods, construction materials, spare parts, and vehicles.