Source-cited draft: tax overview for Ethiopia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Tax (budget) year
8 July to 7 July (Ethiopian fiscal year, Hamle 1 to Sene 30)Income Tax Proclamation No. 979/2016View source ↗
Currency
Ethiopian Birr (ETB)National Bank of Ethiopia Establishment Proclamation
Tax authority
Ministry of Revenues (federal); Ethiopian Customs Commission for customsMinistry of Revenues Establishment Regulation
Residence basis of taxation
Residents taxed on worldwide income; non-residents taxed only on Ethiopian-source incomeIncome Tax Proclamation No. 979/2016 (as amended by No. 1395/2025)View source ↗
Top personal income tax rate
35%Income Tax (Amendment) Proclamation No. 1395/2025View source ↗
Standard corporate income tax rate
30%Income Tax Proclamation No. 979/2016View source ↗
Does VAT exist
Yes — Value Added Tax at a standard rate of 15%Value Added Tax Proclamation No. 1341/2024View source ↗
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)Tax Administration Proclamation No. 983/2016View source ↗
VAT return frequency and deadline
Monthly, due by the 21st day (per local practice; some sources cite end of the following month) (approx — confirm)Value Added Tax Proclamation No. 1341/2024View source ↗
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
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.
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Other Ethiopia computations in the OpenAccountants Tax Library.