Ethiopia
Eastern Africa · ET · 0 treaties
What are the main tax rates in Ethiopia?
Ethiopia has a top personal income tax rate of 35%, a corporate tax rate of 30%, and a standard VAT of 15%.
Tax profile
| Corporate income tax | 30% |
| Withholding — dividends | 15% |
| Withholding — interest | 10% |
| Withholding — royalties | 10% |
| VAT / GST (standard) | 15% |
| Personal income (top rate) | 35% |
| Capital gains | 30% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | No |
| CFC rules | No |
| Transfer pricing | Oecd Aligned |
| Digital nomad visa | No |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | None |
Common questions
- How long does it take to become a tax resident in Ethiopia?
- To become a tax resident in Ethiopia, you must be present in the country for 183 days.
- Does Ethiopia have tax treaties?
- Ethiopia currently has 0 tax treaties.
- What is the capital gains tax rate in Ethiopia?
- The capital gains tax rate in Ethiopia is 30%.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- has a domicile in Ethiopia
- present in Ethiopia, continuously or intermittently, for more than 183 days in any one‑year (12‑month) period
- Ethiopian citizen who is a consular, diplomatic, or similar official posted abroad
Tax residency can be ended by ceasing to be domiciled in Ethiopia (no permanent home or principal seat of interests there) and by staying under the 183‑day presence test, but domicile depends on factual ties and intention to live permanently, so simply leaving the country may not be sufficient if strong ties remain.
Source: Ethiopian income tax law summary based on Income Tax Proclamation No. 979/2016, Article 5
Tax treaty network (24)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| China | 5% | 7% | 5% |
| Cyprus | 5% | 5% | 5% |
| Czechia | 10% | 10% | 10% |
| Egypt | 10% | 10% | 10% |
| France | 10% | 5% | 7.5% |
| India | 7.5% | 10% | 10% |
| Ireland | 5% | 5% | 5% |
| Israel | 15% | 10% | 5% |
| Italy | 10% | 10% | 20% |
| South Korea | 8% | 7.5% | 5% |
| Kuwait | 5% | 5% | 30% |
| Netherlands | 15% | 5% | 5% |
| Poland | 10% | 10% | 10% |
| Portugal | 10% | 10% | 5% |
| Romania | 10% | 15% | 15% |
| Saudi Arabia | 5% | 5% | 7.5% |
| Seychelles | 5% | 5% | 5% |
| Singapore | 5% | 5% | 5% |
| Slovakia | 10% | 5% | 5% |
| South Africa | 10% | 8% | 20% |
| Tunisia | 5% | 10% | 5% |
| Turkey | 10% | 10% | 10% |
| United Arab Emirates | 5% | 5% | 5% |
| United Kingdom | 15% | 5% | 7.5% |