Addis Ababa Hotels to Pay 5% Additional Tax
Addis Ababa hotels, motels, resorts, guesthouses and other similar establishments will have to pay 5% additional tax. The new regulation came into effect on Sene 12, 2018 E.C. ( June 19, 2026 G.C.)
According to the new regulation, any establishment providing lodging services in Addis Ababa must submit a detailed list of the number of rooms and the daily rate for each room to the Revenue Office.
The regulation is titled “Hotel and Similar Service Providers’ Lodging Service Municipal Tax Regulation No. 204/2018”. The establishment owner will charge 5% additional tax from guests. The collected tax will be deposited into a bank account designated by the Addis Ababa Revenue Office on monthly or quarterly basis.
Concealing tax information will be considered a criminal offense. Suspension of license and fines will be imposed on establishments which fail to comply with the provisions mentioned in the regulation. Any hotel or similar establishment, which does not report its lodging revenue on time, will face a penalty of up to 5% of the payment. Any establishment, that does not remit the tax revenue on time, will be subject to a penalty of 15% on top of the interest.
