TBeST Law LLP had the privilege of attending the launching event for the Ethiopian Capital Market Authority's Regulatory Sandbox represented by Tibebe Zewdu. The event provided valuable insights into the benefits, eligibility criteria, and step-by-step process of participating in the Sandbox—from application submission to exiting with ongoing support and feedback. Ms. Hana Tehelku, Director General of ECMA, delivered a compelling keynote address, and presentations by the designers, M-Pensa Impact & Development Services, highlighted the Sandbox as a crucial tool for startups and companies facing regulatory challenges in launching new financial products, services, or business models. The Sandbox offers a unique opportunity to test innovations with temporary regulatory flexibility before fully entering the market. A key takeaway is that while the Sandbox is a powerful enabler, it does not waive other licensing and regulatory requirements from additional regulators. We raised a question on whether the National Bank of Ethiopia and other regulators were involved in the Sandbox's design and whether startups could roll out financial services under the Sandbox that would otherwise require an NBE license. It was clarified that the Sandbox focuses solely on regulated capital market activities within ECMA's regulatory scope, with a hint that NBE may introduce its own Sandbox soon. For those interested, the application period is open but brief—ending on September 30th, 2024. Don't miss this opportunity to innovate and grow within Ethiopia's evolving capital market landscape. #Ethiopia #CapitalMarkets #ECMA #RegulatorySandbox #Innovation #Fintech #Startups #FinancialServices #NBE #EthiopianEconomy #FinancialInclusion #TechStartups
About us
TBeST Law LLP is a full service law firm located in Addis Ababa, Ethiopia, that provides corporate and commercial legal services across a wide range of sectors and practice areas. TBeST draws experience from over 50 years of collective experience in the academic and legal services sectors. TBeST Law's lawyers are at the forefront of Ethiopia’s legal reform contributing to the drafting of the Ethiopian Commercial Code, Investment and Tax Laws. Our continuous engagement in legal and policy reforms give our lawyers a unique insight into the understanding of the law. We also provide regular legal updates to ensure our clients are actively aware of the changes in the Ethiopian legal environment.
- Website
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www.tbestlaw.com
External link for TBeST Law LLP
- Industry
- Legal Services
- Company size
- 11-50 employees
- Headquarters
- Addis Ababa
- Type
- Partnership
- Founded
- 2022
Locations
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Primary
Africa Avenue
Addis Ababa, ET
Employees at TBeST Law LLP
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Dr. Taddese Lencho
Founder and Managing Partner, TBeST Law LLP
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Sisay Habte
Partner at TBeST Law LLP| Investment advisory| M&A| Capital market regulations| Mining
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Tibebe Zewdu
Partner at TBeST Law LLP | Tax Lawyer | Licensed Customs Law Advisor | M & A | Corporate Law | Investment | Criminal Law |
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Benyam Tafesse
Co-founder & Partner at TBeST Law LLP/Advocate & Consultant in Law: IPT/Projects & infrastructure/Energy/Public Private Partnership/Aviation/…
Updates
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Legal Alert! Ethiopia passes its first comprehensive Data Protection Law Ethiopia has taken a significant step forward by passing its first comprehensive Data Protection Law. This landmark legislation brings Ethiopia in line with global standards, providing robust protections for personal data and imposing stricter obligations on organizations handling such data. This new legislation will have far-reaching implications for companies operating within Ethiopia, particularly those dealing with sensitive data. It is crucial to understand the requirements and ensure compliance to avoid potential legal risks. Please use the link below to read a brief update from our team. #Ethiopia #DataProtection #LegalUpdate #Compliance #PrivacyLaw #Cybersecurity
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Planning to Get a Passport or a 'Yellow Card' or visit the Land of Origins? Here's What You Need to Know! Whether you're planning to get a new passport, renew an expired one, obtain a 'yellow card' as an Ethiopian diaspora, get a visa or settle in Ethiopia as an expat, there's an important update for you! The Council of Ministers has just passed a new regulation that revises the service fees for various services provided by the Immigration and Citizenship Services. We've got a quick update on these changes, so you can stay informed and plan ahead. Check out the details below or reach out to our Corporate Immigrations team for more details! https://lnkd.in/evZJAEc9 #Ethiopia #Immigration #Travel #Diaspora #ExpatLife #LandofOrigins
Fee Rates Payable for Services Provided by the Ethiopian Immigration and Nationality Service, under Council of Ministers Regulation No. 550/2024 | TBeST Law LLP
https://tbestlaw.com
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Legal Alert! On Monday, July 29, 2024, the National Bank of Ethiopia (NBE) made a groundbreaking move by issuing Directive No. FXD 01/2024. This marks a significant shift as Ethiopia transitions from a fixed exchange rate to a dynamic, market-based system! But that's not all—this directive also brings together all foreign exchange-related directives of the NBE under one document, simplifying the landscape for businesses and individuals alike. Naturally, such a big change comes with questions, and we've heard them loud and clear from our clients. We've put together some of the most frequent questions below. Curious to learn more? Check out our in-depth analysis of some of the key questions through the link below! https://lnkd.in/exvQ6g6Q #Ethiopia #liberalization #Ethiopiacurrencyfloat
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We are excited to announce our team's contribution to the Ethiopian chapter of the Corporate Governance Guide 2024 by Chambers and Partners! Explore our insights into the Ethiopian Commercial Code and key legislations shaping corporate governance practices using the link below. https://lnkd.in/ey_3Yeev #Corporategovernance #Ethiopia #lawfirm
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TBeST Law LLP is excited to share our latest legal update on the Forest Development Protection and Utilization Regulation, effective April 4, 2024. This regulation, issued by the Council of Ministers, establishes a structured framework for #carbon_trading within Ethiopia's forest sector. Under this regulation, forest developers—ranging from small-scale private individuals to large institutions—can engage in carbon trading activities and hold ownership rights over the carbon produced in their forests. This legal framework not only defines key commercial terms such as #Forest_Carbon_Stock, #Forest_Carbon_Registration, and #Forest_Carbon_Ownership_Right but also outlines the rights and obligations of #forest_developers. Key Benefits of the Regulation: 🌿Facilitates a recognized and regulated environment for carbon trading. 🌿Allows forest developers to generate income by selling carbon credits. 🌿Provides access to extension, training, professional support, and incentives for planting endangered indigenous tree species. Explore the full legal update on our website to learn more about how this regulation impacts carbon trading and forest development. https://lnkd.in/ds8dswXv #CarbonTrading #ForestDevelopment #Sustainability #EthiopianLaw #LegalUpdate #EnvironmentalLaw #ClimateChange #Forestry #GreenEconomy #Ethiopia
Carbon Trading under the Forest Development Protection and Utilization Regulation No. 544/2024 | TBeST Law LLP
https://tbestlaw.com
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Legal Update The Ministry of Finance has issued the new Excise Stamp Management Directive No. 1004/2024, effective June 2024. This crucial directive aims to boost tax collection, combat illicit trade, and protect public health by regulating the affixation and management of excise stamps on excisable goods in Ethiopia. Key Highlights: - Mandatory excise stamps for alcoholic beverages, non-alcoholic beverages, and tobacco products. - Unique Identifiers to prevent counterfeiting and ensure traceability. - Compliance requirements for manufacturers and importers. Stay informed on the latest regulatory developments and ensure your business is compliant. Read the full update for more details! https://lnkd.in/dHdc9iJr #LegalUpdate #ExciseTax #Ethiopia #TaxCompliance #TaxLaw #Ethiopianlaw
Legal Update on the New Excise Stamp Management Directive No. 1004/2024: Key Regulations and Requirements | TBeST Law LLP
https://tbestlaw.com
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TBeST Law LLP reposted this
🌟 Coffee Meetup Recap: 57th Coffee Meetup! 🌟 A huge thank you to everyone who joined us this past Saturday at the Haya Hulet ALX City Point Hub for an enlightening session on 𝐒𝐦𝐚𝐫𝐭 𝐓𝐚𝐱 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐞𝐬 𝐟𝐨𝐫 𝐒𝐭𝐚𝐫𝐭𝐮𝐩𝐬: 𝐆𝐫𝐨𝐰 𝐚𝐧𝐝 𝐂𝐨𝐦𝐩𝐥𝐲! ☕️📊 We were thrilled to have Tibebe Zewdu, Tax Lawyer and Partner at TBeST Law LLP, and Yordanos Demssie, Financial Consultant, share their wealth of knowledge. Here’s a quick recap of what we discussed: 🔹 𝐋𝐞𝐠𝐚𝐥 𝐒𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞𝐬: Understanding which legal structure is best for your startup. 🔹 𝐓𝐚𝐱 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬: Navigating the different regulations when it comes to taxes. 🔹 𝐃𝐨’𝐬 𝐚𝐧𝐝 𝐃𝐨𝐧’𝐭𝐬: Essential tips for managing your taxes effectively. 🔹 𝐄𝐱𝐩𝐞𝐫𝐭 𝐂𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧: The importance of consulting with tax experts. 🔹 𝐏𝐫𝐨𝐩𝐞𝐫 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧: Ensuring compliance through proper documentation. We were thrilled to see over 85 participants join us! Your enthusiasm and engagement made this event a huge success. 🙌🎉 A heartfelt thank you to our amazing hosts, Tibebe Zewdu and Yordanos Demssie, for their insights, and to everyone who participated! Your questions and active involvement brought so much energy to the session. 🤝 Stay tuned for more events and keep growing your startups smartly! 🚀📈 #Startup #TaxStrategies #Entrepreneurship #Networking #BusinessGrowth #Compliance #ALXEthiopia #Community #LearningTogether
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Cross-Border E-Commerce Transactions: the New Frontier of Ethiopian VAT E-commerce giants like Amazon, Google Play, Apple Store, and Netflix are reshaping the landscape of Value Added Tax (VAT) regulations. One of the major driving factors for the current VAT reform is the growth of e-commerce. The existing VAT jurisdictional rules capture value-added transactions only when: · The supplier is a registered person, · The supply is captured through imports, or · The purchaser of the supplies is a registered person in Ethiopia (referred to as reverse VAT). The traditional VAT jurisdiction, which relies on physical presence tests of either the supplier’s or the purchaser’s registration, has proven ineffective against ecommerce companies like Amazon, Netflix, e-bay, and Alibaba which can operate from remote locations without concerning themselves with VAT. A new VAT jurisdictional nexus is therefore crucial to include these suppliers or their supply chains within the VAT system particularly when they supply goods and services directly to consumers. To address these challenges, new provisions have been introduced under the draft VAT Proclamation to ensure compliance by foreign service providers, particularly those involved in e-commerce. The draft VAT Proclamation requires ecommerce suppliers of goods and services to register for VAT, extending the traditional direct registration requirements to cross-border e-commerce suppliers of goods and services. The major ecommerce suppliers of goods and services will probably heed this requirement and register for VAT in Ethiopia or appoint a VAT representative for purposes of complying with VAT in Ethiopia. For those that are unwilling to do so, the Tax Authority may require them to lodge security. This measure ensures compliance, especially if there are reasonable grounds to believe these providers might not fulfill their obligations. If foreign service providers fail to comply with their obligations to post security, they may be required to appoint a VAT representative in Ethiopia. The VAT representative will be responsible for registration, filing VAT returns, and paying VAT on behalf of the foreign service provider. The VAT representative will be personally liable for the VAT obligations of the foreign service provider and must be separately registered for each provider they represent. While these rules will go a long way in capturing some of the value created through ecommerce transactions, the challenges posed by the so-called “digital economy” remain, particularly when it comes to applying VAT (and income tax) on the value generated from data and advertising by the likes of Google and Facebook. #digitaleconomy; #EthiopianVAT; #Ethiopiantax #draftVATProclamation #VATjurisdiction #ecommerce TBeST Law LLP
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As we continue the conversation on the Draft VAT bill approved by the Council of Ministers a few weeks ago, we wish to draw attention to the proposed registration threshold for VAT. 2 Million Annual Turnover Proposed for VAT Registration 500, 000 ETB was a high value number twenty years ago; 2, 000, 000 ETB is a pretty low number today. When VAT was first introduced in Ethiopia back in 2002 (effective from 2003), the VAT registration threshold was set at 500, 000 ETB. The understanding was that those businesses whose annual turnovers exceeded the half a million Birr mark could bear the substantial compliance costs of VAT associated with issuing VAT invoices, maintaining books and records, and monthly declarations and payments. A simpler tax, the Turnover Tax (ToT), was introduced for those businesses that could not comply with the rigorous reporting requirements of the VAT. The #draftVATProclamation proposes “raising” the registration threshold to 2 million ETB (an early draft proposed 5 million ETB) from the current 1 million ETB which itself was raised after 17 years in 2019. In dollar terms, this is equivalent to 35, 714 USD annual turnover. Although the gross amount in ETB looks much higher than the threshold set back in 2002 and 2019, it is still half the threshold set 20 years ago. This has the effect of extending the registration requirement to small and perhaps even microbusinesses, and by bringing a substantial number of otherwise small businesses into the net of the VAT system, the draft VAT bill continues the executive practice of adding substantial compliance costs to small and perhaps microbusinesses which look big solely because of the annual turnover denominated in Birr. The sponsors of the draft VAT legislation have hoped that the compliance costs will be eased by the increasing utilization of technology for reporting VAT to the tax authorities. Whether technology will mitigate the substantial compliance costs of the VAT registration for small businesses remains to be seen, but the low registration threshold places Ethiopia among those countries that set the registration threshold so low as to practically place it among those countries that do not set the registration threshold at all. In terms of the real value of the local currency, an amount upwards of 4 million annual turnover would have been more accurate indicator of the size of a business capable of complying with the rigors of VAT. We want to know your thoughts on the proposed VAT registration threshold. #TBeSTLawllp #VATregistration #EthiopiandraftVAT