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Ethiopia

Taxes

Want to setup a company? This will tell you about tax laws in Ethiopia, this article will educate you on the tax laws for a LLC which is the most common company type in Ethiopia.

The country has a tax on foreign earned income made internationally differently than if it were derived locally. Theheadline standard rate for income earned abroad, from our research, and these things do change, is 0%. The country doesn't have known exemptions to remit foreign earned profits accrured abroad. Taxes are quite low in Ethiopia as the is 30%. This ranks Ethiopia as 134th when compared to corp. taxation rate internationally. . .

The value added tax (VAT) rate in ET is 15.00%, which ranks Ethiopia as 134th when compared to value added tax rate worldwide. In terms of other taxation, an employer will contribute % to the equivalent of a social security fund and an employee will contribute %. The overall complexity of the tax system is high. This is measured by average time to comply with a country's labor tax requirements is as it is 306hours. Contributing to this is the number of yearly labor tax payments, which is 20 in ET.

Thin cap rules are officially enacted. This refers to any type of laws on a business and the debt-to-asset ratios. Dividends are distributions of an earnings of the business, decided by the board of directors, to a class of its shareholders. Dividends can be one of the following shares of stock, cash payments, or other property. The capital gains rate in ETis 0%. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.



There is a tax on net wealth in Ethiopia. There are no known inheritance taxes in ET. There are not many widely used credits for innovation spend that include tax relieft in ET.

The above is not tax or legal advice for your particular circumstances. We can to reference you to a lawyerin Ethiopia who can get you an answer. Contact us today. Click the free consultation button above.

Country details

Ethiopia
ETB
Addis Ababa
Africa
am, en-ET, om-ET, ti-ET, so-ET, sid
88,013,491

Tax treaties

Country Type Date Signed
South Africa DTC  2004-03-17
Netherlands DTC  2012-08-10
Russian Federation DTC  1999-11-26
Tunisia DTC  2003-01-23
Ireland DTC  2014-11-03
Italy DTC  1997-04-08
China DTC  2009-05-14
India DTC  2011-05-25
United Kingdom DTC  2011-06-09
Turkey DTC  2005-03-02
Portugal DTC  2013-05-25
Israel DTC  2004-06-02
Czech Republic DTC  2007-07-25
Seychelles DTC  2012-07-14
France DTC  2006-06-15

Tax treaties Map

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