: If a business's calculated income tax is less than 2.5% of its total annual turnover , it must pay the 2.5% amount as AMT. The AMT paid can be credited against future tax liabilities for up to five years.
Ethiopia applies two main types of Withholding Tax:
The 2026 PAYE system has introduced a major change: the monthly tax-free threshold has been raised to ETB 2,000 , providing relief for low-income earners. The Best Way to Access the Withholding Tax Proclamation PDF withholding tax proclamation in ethiopia pdf best
Staying current is paramount. The passage of the (and its often-confused counterpart, No. 1394/2025) represents a significant shift in Ethiopia's tax policy. The government's stated goals for this reform include boosting revenue, improving equity in the tax system, expanding the tax base, and curbing evasion.
Looking for the best PDF of the Withholding Tax Proclamation in Ethiopia? This guide covers Proclamation No. 979/2016, amendments, rates, exemptions, and where to download the official document. : If a business's calculated income tax is less than 2
If you want to dive deeper into Ethiopian tax compliance, tell me:
Subject to a 10% or 15% rate depending on the specific double taxation treaties (DTTs) active between Ethiopia and the provider's home country. 3. Dividends and Interest The Best Way to Access the Withholding Tax
Note: Tax laws in Ethiopia are subject to frequent amendments and executive directives (such as exemptions for specific sectors like manufacturing or agriculture). Always verify the current status of the law with the ERCA or a tax professional.
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