Federal Democratic Schedule B

Rental Income Tax Declaration

Republic of Ethiopia
Ministry of Revenue
Federal Inland (Books of Account)
Revenue Authority
(Lessee Detail (Form 1202) and Balance Sheet (Form1303) must be filed
concurrent with the filing of this Rental Income Tax Declaration)
Section 1 – Taxpayer Information
1.Taxpayer’s Name (Company Name or Name, Father’s Name, 3. Taxpayer Identification 8. For the Year of:
Grandfather’s name) Number

2a. Region 2b. Zone/K-Ketema 4. Tax Account Number Document Number (Official Use Only)

2c. Woreda 2d. Kebele/Farmers Association 2e. House 5. Tax Center

Number

6. Telephone Number 7. Fax Number

Section 2 – Tax Declaration

General Income
1 Gross Rental Income (Transfer from Details, Form 1202) 10
2 Sub-Lease Amount (Transfer from Details, Form 1202) 20
3 Net Rental Income (Subtract Line 2 from Line 1 and Enter Total at Right) 30
General Administrative and Financial Expenses
4 Salary and Wages 40
5 Employee Benefits 50
6 Maintenance Expenses 60
7 Promotion Expenses 70
8 Insurance Expenses 80
9 Taxes and License Fees 90
10 Bad Debts Expenses 100
11 Depreciation Expenses 110
12 Amortization Expenses 120
13 Travel Expenses 130
14 Investment/Participation Deduction 140
15 Utility Expenses 150
16 Interest and Bank Charges 160
17 Rental Expenses 170
18 Other Expenses (Transfer Total from Annex 1) 180
19 Total Expenses (Add Lines 4 through 18 and Enter Total) 190
20 Taxable Rental Income/Loss (Line 3 minus Line 19) 200
21 Rental Tax Payable (Rate Table applied to Line 20) 210
22 Withholding Tax Payments (Attach Schedule Imports and Payments) 220
23 Net Tax due / Refundable Amount (Subtract Line 21 from Line 22) 230

Section 3 – Taxpayer Certification

I declare that the above declaration and all information provided here-with is correct and complete. I understand that
any misrepresentations is punishable as per the tax Law and the Penal Code. Declaration of preparer (other than the
taxpayer) is based on all information of which the preparer has any knowledge.
Printed Name of Taxpayer or Authorized Representative Date
For Official Use Only
Signature of Taxpayer or Authorized Representative Date of Payment Receipt Number

Company Seal
Printed Name of Preparer Date Amount of Payment Cheque Number

Signature of Preparer Cashier’s Signature

Ministry of Revenue (Draft as of 4/18/06) FIRA Form 1201 (5/2006)

 Rental Income Tax Annex and Instructions
Taxpayer Information
1. Taxpayer’s Name (Company Name or Name, Father’s Name, Grandfather’s 2. Taxpayer Identification Number 3. Statement as of:
name)

Annex 1 – Other Expenses

a. Seq
Num Account Description c. Amount

Total (Enter Total amount on Line 18 of form number 1201 (Include Total from Continuation Sheet if
Used))
 Instructions for Rental Tax Declaration 1,801 7,800 10
This form complies with the regulations established in the Income Tax 7,801 16,800 15
Proclamation No. 286/2002 (Hereafter referred to as the 16,801 28,200 20
Proclamation). Specific references to business income are included in 28,201 42,600 25
Section III of the Proclamation, Schedule ‘B’ Income/Income from 42,601 60,000 30
Rental of buildings. Paragraph 14 states, “Income tax shall be Over 60,000 35
imposed on the income from rental of buildings.”
Calculation Table – Determine which range bracket your taxable
This form may be used for those involved in the rental of buildings when income on Line 20 falls within, multiply by the percentage shown in the
the annual income exceeds 100,000 Birr. If you are a Category C Tax Rate column and then deduct the amount in the “Deduction”
Taxpayer with rental income under 100,000 Birr, you should file the column. For example, if your taxable Business Income on Line 20 for
Category C Rental Income Tax Declaration, Form 1205. If you are in the year is 45,000 birr, you would go to the 6 th row (42,601 to 60,000
another type of business, you may be required to complete the Business birr) and multiply your taxable income of 45,000 birr by the tax rate of
Income Tax Declaration, Form 1201. Business Income is covered under 30% and then subtract the 2,820 birr shown in the Deduction column.
Schedule C of the Proclamation. (45,000 birr x 30% minus 4,950 birr equals 8,550 birr).
In addition to the Rental Tax Declaration, you must complete and file a Over Birr To Birr Tax Rate Deduction
Rental Income Lessee Details Declaration, Form 1202 and a Balance
0 1,800 Exempted threshold
Sheet, Form 1303. Complete the Balance Sheet prior to the Tax
 1,801 7,800 10 % 180
Declaration, as some of the information on the Balance Sheet will have
to be transferred to the Declaration form. At the top of the Balance Sheet 7,801 16,800 15 % 570
mark that you are filing it for a Rental enterprise. If you are involved in 16,801 28,200 20 % 1,410
more than one of these enterprises, you will need to file separate 28,201 42,600 25 % 2,820
Balances sheets with each Declaration. 42,601 60,000 30 % 4,950
Over 60,000 35% 7,950
Should there be any discrepancy between these instructions and the
Proclamation, the language of the Proclamation shall take precedence.
Section 3 – Taxpayer Certification
The form must be signed and dated by the taxpayer or the authorized
Section 1 – Taxpayer Information representative at the bottom of page 1. The signature and name of the
1 Name – Enter the name of individual taxpayer including given name, preparer, if other than the taxpayer is also required. If payment is made
father’s name and grandfather’s name. in person, the cashier will record this information and the Ministry of
2 Address – Enter all information necessary to identify the location of your Revenue will retain the original form. If you need a copy of the
residence. If your address has changed since your last filing, contact your Declaration, you should make this before meeting with the cashier.
Registration Office.
3 Taxpayer Identification Number (TIN) – Every person having a tax
obligation is required to have a TIN and to enter it with each filing. See
Articles 43, 44 and 90 of the Proclamation.
4 Tax Account Number (TAN) – This number is provided by the
Federal Inland Revenue Authority (FIRA) and must be entered each
time a Personal Income Tax Return is filed. If you have not been
issued this number, contact your local central registration office.
5 Filing Month and Year – Enter month and year for which you are
filing this return.
6 Tax Centre – Enter name of Tax Centre where your are registered.
7/8 Telephone and Fax Numbers – If more than one, enter contact
numbers for person authorized to sign this form.

Section 2 – Tax Declaration

Complete Annex 1 prior to attempting to complete this form. If
additional lines are needed to complete the Annex, attach an additional
sheet with that contains the same information as required in the Annex.
Be sure to enter your name or company name and Taxpayer
Identification Number. Enter totals from the annex on the next to last
line (just before the TOTAL line) in the annex. Be sure to attach your
extra sheets to the Tax Declaration.
General Income – Transfer to Line 1 (Gross Rental Income), the Total
Rent for Year from column “h” of Form 1202. Then complete the
calculations.
General Administrative and Financial Expenses – Enter the
appropriate numbers in lines 4 through 17. Other Expenses on Line 18
must be listed in detail in annex 1. In accordance with Article 16c of
the Proclamation, the following amounts should be deducted from
income in computing taxable income: taxes paid with respect to the
land and buildings being leased except income taxes paid; and for
taxpayers maintaining books of Account, the expenses incurred in
earning securing, and maintaining rental income, to the extent that the
expenses can be proven by the taxpayer and subject to the limitations
specified by the proclamation; deductible expenses include (but are not
limited to) the cost of lease (rent) of land, repairs, maintenance, and
depreciation of buildings, furniture and equipment in accordance with
Article 23 of the proclamation as well as interest on bank loans and
insurance premiums.

Tax Rate on Income of bodies is thirty percent (30%) of taxable income.

Tax rate on income of persons is according to the schedule below. In case
of an audit, you will be required to provide receipts or other written and
verifiable documentation to prove your actual expenses.

Schedule “B” Tax Rate Table

Taxable Income from Rental
Income Tax Payable
(Per Year)
(Percent)
Over Birr To Birr
0 1,800 Exempt Threshold