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ET

Ethiopia

Eastern Africa ETB

ET · ETH · #26 · 15 cities

Nomad score 44/100 Compare
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
Tax authority: Ministry of Revenues Website

Income tax brackets

Corporate
Corporate brackets
Bracket min Bracket max Rate
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 +
Local currency: ETB

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+)
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.

Sources

Change history

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

    • Income tax 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 on 2026-10-09 (taxsummaries.pwc.com).

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