NewTax

A Market Price Data Collection and Use Directive

Ministry of Revenues

Summary

This directive establishes procedures for collecting and using market price data to ensure accurate tax assessments based on current market values of goods, property, services, or benefits.

Who's affected

Businesses involved in the sale of goods, property, services, or benefits that are subject to tax assessment.

Action required

Businesses must ensure their reported transaction prices are consistent with market values and cooperate with tax authorities in providing market price information when requested.

Key points

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  • Establishes a standardized system for market price data collection and use.
  • Mandates collection of market price data from various sources, including third-party websites and collaborators.
  • Defines specific methods for data analysis and market value calculation.
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    • Empowers the Ministry of Revenues to use this data for accurate tax determination.
    • Ensures confidentiality of collected market price information.

Requirements

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  • Market price data must be collected and organized according to specified procedures.
  • Market price information can be collected through various means including in-person inquiries, telephone, postal correspondence, email, or other technological means.
  • Sources for market price information include marketplaces, third-party websites, government agencies, government development organizations, companies, partners, suppliers, and other relevant sources.
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    • Market price information collected from third-party websites must be validated through alternative methods.
    • Reliable taxpayers designated as collaborators must periodically provide market price information.
    • Market price information from suppliers must be submitted in the prescribed form.
    • Market price data analysis methods include marketplace analysis, time-based analysis, and comparison.
    • Market value calculations must use scientific mathematical formulas, including median price calculation for whole or odd numbers of samples.
    • The fair market value must be recorded in the market value database.
    • Market value information from the database shall be used as a basis for tax determination.
    • If single transaction prices are unavailable or significantly different from database prices, similar or prior period (up to 6 months) data shall be used.
    • Departments requesting market price information must identify high-risk sectors and provide timely, detailed information.
    • The Information Technology Center must develop, train, and update the market price database.
    • Any person requested to provide market value information must cooperate by providing accurate information.

Rights and permissions

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  • The tax authority has the power to collect and use market price information for tax determination.
  • The tax authority may use price information collected prior to this directive.
  • The market price information organized in the tax authority's price database is not open to the public.

Restrictions

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  • Market price information collected from third-party websites requires validation.
  • Market price information obtained from collaborators must be verified for accuracy.
  • Market price information from suppliers must comply with prescribed forms and procedures.
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    • The market price information organized in the tax authority's price database is confidential and not open to the public.
    • Any directive or customary practice conflicting with this directive shall not apply.
    • If the single transaction price is more than ten percent lower than the market value database price, the database price shall be used.

Penalties

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  • Failure to cooperate by providing accurate market value information is subject to penalties under the Federal Tax Administration Proclamation.

Objectives

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  • To make tax administration more efficient, effective, and accountable.
  • To establish a clear procedure for determining the accurate current market value of goods, property, services, or benefits.
  • To ensure accurate tax determination based on the precise market value.
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    • To ensure uniform implementation of accurate market price data collection methods across all branch offices.
    • To determine the duties and responsibilities of departments, branches, and market price information professionals.
    • To use accurate and up-to-date market value information for tax decisions.

Organizations

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  • Ministry of Revenues
  • Tax Information and Sales Registration Equipment Management Department
  • Risk and Compliance Strategy Directorate
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    • Tax Fraud and Investigation Directorate
    • Information Technology Center
    • Ethiopian Statistical Service
    • Ministry of Trade and Regional Cooperation
    • Ministry of Urban Development and Infrastructure
    • National Bank of Ethiopia
    • Commercial Bank of Ethiopia
    • Customs Commission
    • Government Procurement Service
    • Government Procurement and Property Authority
    • Ethiopian Commodity Exchange
    • Competition and Consumer Protection Authority
    • Capital Market Authority
    • Ethiopian Securities Exchange

Legal references

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  • Federal Tax Administration Proclamation No. 983/2008, Article 3(6)
  • Federal Income Tax Proclamation
  • Tax Law
Original sourcehttps://justice.gov.et/en/directives/a-market-price-data-collection-and-use-directive-no-1052-2025/
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