Ethiopian tax law has recently undergone significant updates with the introduction of the Income Tax (Amendment) Proclamation No. 1395/2025 , which modifies the primary Federal Income Tax Proclamation No. 979/2016 Key Withholding Tax (WHT) Rates
Ethiopia’s withholding tax framework requires payers to withhold tax at source on certain payments (e.g., salaries, contractor payments, rent, dividends, interest) and remit it to the Ethiopian Revenue and Customs Authority (ERCA). The rules determine withholding rates, withholding agents’ responsibilities, reporting and remittance deadlines, and penalties for non-compliance. Recent proclamations and regulations refine rates, exemptions, and administrative procedures; practitioners rely on the official proclamation text plus supporting regulations and ERCA guidance for correct application. withholding tax proclamation in ethiopia pdf best
Digital Economy: A new final withholding tax of 15% applies to non-professional digital content creation (e.g., social media, YouTube). Professional creators are taxed under the standard business regime. Ethiopian tax law has recently undergone significant updates
General Taxation Guide: A comprehensive overview is provided by theiGuides. Ethiopia issues a new Income Tax Proclamation Professional creators are taxed under the standard business
Local Withholding Tax Rate: Increased to 3% (previously 2%) on gross payments for domestic goods and services. Threshold Increases:
Access to health and fitness solutions just got easier.
Apple, the Apple logo, and iPhone are trademarks of Apple Inc., registered in the U.S. and other countries.
App Store is a service mark of Apple Inc., registered in the U.S. and other countries.
Google Play and the Google Play logo are trademarks of Google LLC.