🇪🇹 Ethiopia Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 35.0% Worldwide system

Corporate tax 30.0%

VAT 15.0% standard rate

Tax residency 183 days 24 tax treaties

Ethiopia tax profile

Data year: 2026

Tax system: Worldwide Residents are taxed on worldwide income; non-residents on Ethiopian-source income. Employment income, business profits and investment income are combined into taxable income after deductions. The standard corporate rate is 30% on taxable business profits; an alternative minimum tax of 2.5% of turnover applies when regular tax is below that threshold (with sector-specific bases for banks, insurers and commission businesses).
Top PIT rate: 35.0%
Corporate tax rate: 30.0%
VAT: 15.0%
Capital gains tax: 15.0% Disposals of buildings, shares and bonds are generally taxed at 15%. Private homes held at least two years may be exempt.
Social security (employee): 7.0%
Social security (employer): 11.0%
Dividend withholding: 15.0%
Interest withholding: 10.0%
Royalty withholding: 10.0%
Treaty count: 24

Income tax brackets

Corporate

Corporate brackets
Bracket min	Bracket max	Rate	USD equivalent
ETB 0	and above	30.0%	--

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
ETB 0	ETB 24,000	0.0%	$0 – $149
ETB 24,001	ETB 48,000	15.0%	$149 – $298
ETB 48,001	ETB 84,000	20.0%	$298 – $522
ETB 84,001	ETB 120,000	25.0%	$522 – $745
ETB 120,001	ETB 168,000	30.0%	$745 – $1,044
ETB 168,001	and above	35.0%	$1,044 +

Tax residency

Days threshold: 183 days
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.
Exit tax: No
CFC rules: No

Filing information

Fiscal year: 01-01 – 12-31
Filing deadline: 7 September (annual gross below ETB 2 million); 7 November (ETB 2 million+)

Sources

PwC Worldwide Tax Summaries — Ethiopia (accessed Oct 9, 2026) Headline PIT/CIT/VAT/CGT, WHT, residency, filing dates, treaty WHT table (24 partners)
PwC Ethiopia — Taxes on personal income (accessed Oct 9, 2026) Monthly employment income tax brackets; worldwide taxation for residents
Ministry of Revenues (Ethiopia) (accessed Oct 9, 2026) National tax authority portal (proclamations, eTax, income tax calculator)
KPMG — Income Tax (Amendment) Proclamation No. 1395/2025 (accessed Oct 9, 2026) Statutory PIT schedules, 30% CIT, AMT 2.5% of turnover, revised WHT and PE rules

Change history

Oct 19, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 19, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 19, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 19, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 19, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 18, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 18, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 10, 2026
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).
Oct 9, 2026
- Capital gains tax rate none 15
- Brackets updated
Refreshed from PwC (Jul 2026 review), MOR portal, and Proclamation 1395/2025—brackets, WHT, CGT, pension, residency wording, treaty count 24, `tax_authority_url`, `data_year` 2026, `verified` 2026-10-09 (https://taxsummaries.pwc.com/ethiopia).

Ethiopia

Ethiopia tax profile

Income tax brackets

Tax residency

Filing information

Sources

Change history

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