: Applies to payments exceeding ETB 10,000 per contract.
: Taxpayers are now required to pay 25% of their prior year's tax as an advance payment within 30 days after each quarter.
: Withheld taxes must generally be paid to the Ethiopian Ministry of Revenues within 30 days after the end of the month in which the tax was withheld. withholding tax proclamation in ethiopia pdf best
: If a supplier fails to provide a Taxpayer Identification Number (TIN) and a valid business license, the payer must withhold 30% . Dividends : Increased to 15% (previously 10%).
: Detailed breakdown of the recent changes from KPMG. : Applies to payments exceeding ETB 10,000 per contract
: A simplified overview of the key changes from Legal Service Ethiopia. Income Tax (Amendment) Proclamation No.1395/2025
: Generally 10% , though specific financial institution transactions can reach up to 30%. : If a supplier fails to provide a
Withholding tax in Ethiopia has undergone major changes with the enactment of the , which updates several provisions from the original Proclamation No. 979/2016 . These reforms significantly impact rates for dividends, services, and digital income. Current Withholding Tax Rates (2025/2026)
: Professional content creation is taxed as business income; non-professional creation is subject to a final 15% withholding tax . Key Compliance and Deadlines