Investment Climate - Allana Potash Corp.

	Mining: Ethiopia offers excellent opportunities for mineral prospecting and development. The             country is blessed with large deposit of:
	•  Gold;
	•  Precious and metallic minerals like tantalum, iron ore, platinum;
	•  Coal, oil shale and natural gas
	•  Diatomite, potash, phosphate, soda ash, salt, limestone, marble.
	
	           Ethiopia's investment priority areas:
	
	•  Horticulture;
	•  Floriculture;
	•  Agro-processing;
	•  Livestock;
	•  Textile and garment;
	•  Leather and leather products.
	
	        Government support to priority areas: 
	
	•  Access to long term credit with low interest rate;
	•  Export incentives;
	•  Customs duty privileges;
	•  Income task holiday;
	•  Provision of land at competitive lease price;
	•  Technical support.
	
	        Investment incentive: 
	
	         •  100% exemption from the payment of customs duty:
	
	•  Duty free importation of machinery and equipment for investment projects;
	•  Duty free importation of spare parts whose value is not greater than 15% of the total of capital goods to be imported;
	       •  Income tax exemption for periods ranging from 2-7 years depending upon the area of               investment, the volume of export and the location of investment; 
	       •  Loss carry forward for half of the tax holiday period.
	      Export incentives:
	•  Duty drawback scheme;
	•  Voucher system;
	•  Bonded manufacturing warehouse scheme.
	  Taxation:
	Principal taxes currently in effect 
																					No.
				 															Type of tax
				 															Rate
				 			
																		1
				 															Corporate income tax
				 															30%
				 			
																		2
				 															Turn over tax
				 															2% and 10%
				 			
																		3
				 															Excise tax
				 															10% up to 100%
				 			
																		4
				 															Custom duties
				 															0% up to 35%
				 			
																		5
				 															Income tax from employment
				 															0% up to 35%
				 			
																		6
				 															Withholding tax
				 															2%
				 			
																		7
				 															Value added tax
				 															15%
				 			
																		8
				 															Export tax
				 															Nil
				 			
																		9
				 															Royalty tax
				 															5%
				 			
																		10
				 															Dividend tax
				 															10%
				 			
		
	
			 
			Source: Ethiopian Investment Agency
		For more information please visit the website: Invest In Ethiopia

No.	Type of tax	Rate
1	Corporate income tax	30%
2	Turn over tax	2% and 10%
3	Excise tax	10% up to 100%
4	Custom duties	0% up to 35%
5	Income tax from employment	0% up to 35%
6	Withholding tax	2%
7	Value added tax	15%
8	Export tax	Nil
9	Royalty tax	5%
10	Dividend tax	10%