This PDF provides the full withholding tax proclamation for Ethiopia, explaining who must withhold tax, taxable payments, applicable withholding rates, exemptions, procedures for withholding and remittance, reporting and documentation requirements, penalties for non-compliance, and key provisions for dispute resolution and appeals.
| Income Type | Old Rate (2016) | New Rate (2025) | Threshold (if applicable) | |-------------|----------------|----------------|---------------------------| | Dividends | 10% | | - | | Interest | 5%-10% | 10% | - | | Royalties | 5% | 5%-10% | - | | Games of Chance | 15% | 20% | - | | Domestic Goods | 2% | 3% | > ETB 20,000 per transaction | | Domestic Services | 2% | 3% | > ETB 10,000 per contract | | Capital Gains | 15% (property), 30% (shares) | 15% (unified) | - |
An individual residing in Ethiopia for more than 183 days in a 12-month period is considered a resident for tax purposes. withholding tax proclamation in ethiopia pdf best
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Income from digital content creation is now explicitly taxable, often subject to a 15% final withholding tax if not conducted as a professional business. Where to Find the PDF Documents This PDF provides the full withholding tax proclamation
For the official text, search for “Proclamation No. 979/2016, Federal Negarit Gazeta” or check the Ministry of Revenues website. We’ve linked the cleanest PDF version below. (Note: Insert actual PDF link or download widget here).
The tax withheld must be paid to the Tax Authority within a strict timeframe. According to the law, the payment is due in which the payment was made to the recipient. This monthly remittance cycle is a key compliance deadline for all withholding agents. Income from digital content creation is now explicitly
This Proclamation establishes the legal framework for the withholding of tax at source on specified payments made within the Federal Democratic Republic of Ethiopia. It sets out the obligations of withholding agents, the categories of payments subject to withholding, applicable rates, conditions for exemptions or reductions — including requirements for documentary evidence and tax treaty benefits — and procedures for remittance, reporting, assessment, and enforcement.
| Income Type | Old Rate (2016) | New Rate (2025) | |-------------|----------------|----------------| | Dividends | 10% | | | Interest | 5%-10% | 15% | | Royalties | 5% | 15% | | Technical/Management Fees | 10%-15% | 10%-15% (depends on type) | | Repatriated Branch Profits | 10% | 15% | | Digital Services | N/A | Up to 5% (capped) |
by Deloitte Ethiopia
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