: Includes all corporate bodies (companies) regardless of income, and any individual with an annual gross income of ETB 2,000,000 or more .
: For the most trustworthy and up-to-date text, always prioritize PDFs sourced directly from a government domain ( .gov.et ) or a well-known legal information service like 2merkato that links directly to the official gazette. Cross-reference the proclamation number (e.g., 979/2016) and publication date to ensure you have the correct, unamended version.
: Any business expense over ETB 50,000 must be paid through banking channels to be tax-deductible. withholding tax proclamation in ethiopia pdf best
exceeding ETB 10,000 (raised from ETB 3,000).
The primary document governing WHT is the Federal Income Tax Proclamation No. 979/2016 . However, evaluating this older file without incorporating the extensive updates in Proclamation No. 1395/2025 can lead to severe compliance errors. The 2025 amendment significantly expanded the tax base, updated resident and non-resident obligations, and redesigned the taxpayer categorization system. : Includes all corporate bodies (companies) regardless of
The 2025 amendment within a 12-month period. This means:
The legal backbone of withholding tax in Ethiopia is the , which is still currently in force. This proclamation, which can be accessed in PDF format from various official and semi-official sources, details the obligations of a "withholding agent" to deduct tax from specific payments before they are made to a recipient. The rates and applicable circumstances vary depending on the type of income, the residency status of the payee, and, most recently, amendments introduced in 2025 that have updated certain tax rates. : Any business expense over ETB 50,000 must
: Taxpayers are now required to pay 25% of their prior year's tax as an advance payment within 30 days after each quarter.
: Income generated within Ethiopia is subject to tax, regardless of the recipient's residency.