Ethiopia vs Saudi Arabia
Tax systems side by side: income tax rates, corporate tax, VAT, withholding, special regimes and filing rules.
Overview
 ET
Ethiopia
|
 SA
Saudi Arabia
|
|
|---|---|---|
| Tax system | Worldwide | Territorial |
| Tax authority | Ministry of Revenues | Zakat, Tax and Customs Authority (ZATCA) |
| Authority website | Visit | Visit |
| Data year | 2026 | 2026 |
At a glance
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Top personal income tax | 35% | 0% |
| Effective top rate | 35% | 0% |
| Corporate tax rate | 30% | 20% |
| VAT / GST | 15% VAT | 15% VAT |
| Tax system | Worldwide | Territorial |
| Tax treaties | 24 | 58 |
Income tax
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Top rate | 35% | 0% |
| Effective top rate | 35% | 0% |
| Capital gains tax | 15% | 0% |
| Capital gains notes | Disposals of buildings, shares and bonds are generally taxed at 15%. Private homes held at least two years may be exempt. | No capital gains tax for individuals on employment or personal investment income in the ordinary sense. Corporate capital gains are included in taxable income at the applicable CIT rate (20% for non-Saudi/GCC ownership). Real estate disposals may be subject to 5% Real Estate Transaction Tax (RETT) on the total disposal value. |
| Social security (employee) | 7% | 9.75% |
| Social security (employer) | 11% | 11.75% |
| Social security annual cap | — | $540,000 |
Withholding rates
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Dividends | 15% | 5% |
| Interest | 10% | 5% |
| Royalties | 10% | 15% |
Other taxes
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Corporate tax | 30% | 20% |
| Inheritance tax | — | — |
| Wealth tax | — | — |
Tax features
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Personal income tax | Yes | No |
| Capital gains tax | Yes | No |
| Corporate tax | Yes | Yes |
| VAT / GST | Yes | Yes |
| Wealth tax | No | No |
| Inheritance tax | No | No |
| Exit tax | No | No |
| CFC rules | No | No |
| Digital services tax | No | No |
| Crypto-specific rules | No | No |
| Participation exemption | No | No |
| Territorial exemption | No | Yes |
Special regimes
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Digital nomad tax regime | No | No |
| Non-dom regime | No | No |
Residency and filing
|
ET
Ethiopia
|
SA
Saudi Arabia
|
|
|---|---|---|
| Residency threshold | 183 days | 183 days |
| Filing deadline | 7 September (annual gross below ETB 2 million); 7 November (ETB 2 million+) | — |
| Automatic extension | No | No |
| Residency rules | A person is resident if they have a domicile in Ethiopia, stay more than 183 days in any 12-month period (continuously or intermittently), or are an Ethiopian citizen posted abroad as a consular or diplomatic official. | Tax resident for a year if either: (1) the person has a permanent place of residence in Saudi Arabia and is present for at least 30 days in the tax year, or (2) the person is present in Saudi Arabia for at least 183 days in the tax year. Part of a day counts as a full day except for persons in transit between points outside Saudi Arabia. |
| Filing notes | Employees with only employment income generally file through employer withholding and do not file an annual return. Other individuals file by 7 September if annual gross income is below ETB 2 million, or by 7 November if ETB 2 million or more. Companies file within four months after the tax year-end, with quarterly advance payments of 25% of the prior year’s tax. | No personal income tax return. Corporate income tax and Zakat returns are self-assessed and due within 120 days after the taxpayer’s fiscal year-end, with final tax payable by the same deadline. VAT returns are filed monthly, or quarterly if turnover is below SAR 40 million. Withholding tax on payments to non-residents is reported monthly. |