Ethiopia Tax Overview

Ethiopia tax system at a glance

Ethiopia operates a federal direct- and indirect-tax system administered by the Ministry of Revenues. The framework was substantially reformed in 2024-2025 by a new VAT Proclamation and an Income Tax Amendment Proclamation; the figures below reflect the post-reform position. This is an unverified draft for review by a licensed Ethiopia accountant.

• Tax (budget) year — 8 July to 7 July (Ethiopian fiscal year, Hamle 1 to Sene 30) (Income Tax Proclamation No. 979/2016)
• Currency — Ethiopian Birr (ETB) (National Bank of Ethiopia Establishment Proclamation)
• Tax authority — Ministry of Revenues (federal); Ethiopian Customs Commission for customs (Ministry of Revenues Establishment Regulation)
• Residence basis of taxation — Residents taxed on worldwide income; non-residents taxed only on Ethiopian-source income (Income Tax Proclamation No. 979/2016 (as amended by No. 1395/2025))
• Top personal income tax rate — 35% % (Income Tax (Amendment) Proclamation No. 1395/2025)
• Standard corporate income tax rate — 30% % (Income Tax Proclamation No. 979/2016)
• Does VAT exist — Yes — Value Added Tax at a standard rate of 15% % (Value Added Tax Proclamation No. 1341/2024)
• Annual income tax return deadline (companies / Category A) — Within 4 months of the end of the tax year (i.e. by 7 November for an 8 July–7 July year) (approx — confirm) (approx — confirm) (Tax Administration Proclamation No. 983/2016)
• VAT return frequency and deadline — Monthly, due by the 21st day (per local practice; some sources cite end of the following month) (approx — confirm) (approx — confirm) (Value Added Tax Proclamation No. 1341/2024)