---
name: et-tax-overview
description: "Source-cited draft: tax overview for Ethiopia (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/et-tax-overview"
  jurisdiction: "ET"
  tax_year: "2025"
  last_updated: "2026-07-13"
  review_status: "pending_review"
---

# Ethiopia Tax Overview

## Ethiopia tax system at a glance

Ethiopia operates a federal direct- and indirect-tax system administered by the Ministry of Revenues. The framework was substantially reformed in 2024-2025 by a new VAT Proclamation and an Income Tax Amendment Proclamation; the figures below reflect the post-reform position. This is an unverified draft for review by a licensed Ethiopia accountant.

- **Tax (budget) year** — 8 July to 7 July (Ethiopian fiscal year, Hamle 1 to Sene 30)  _([Income Tax Proclamation No. 979/2016](https://taxsummaries.pwc.com/ethiopia/corporate/taxes-on-corporate-income))_
- **Currency** — Ethiopian Birr (ETB)  _(National Bank of Ethiopia Establishment Proclamation)_
- **Tax authority** — Ministry of Revenues (federal); Ethiopian Customs Commission for customs  _(Ministry of Revenues Establishment Regulation)_
- **Residence basis of taxation** — Residents taxed on worldwide income; non-residents taxed only on Ethiopian-source income  _([Income Tax Proclamation No. 979/2016 (as amended by No. 1395/2025)](https://taxsummaries.pwc.com/ethiopia/individual/taxes-on-personal-income))_
- **Top personal income tax rate** — 35% %  _([Income Tax (Amendment) Proclamation No. 1395/2025](https://taxsummaries.pwc.com/ethiopia/individual/taxes-on-personal-income))_
- **Standard corporate income tax rate** — 30% %  _([Income Tax Proclamation No. 979/2016](https://taxsummaries.pwc.com/ethiopia/corporate/taxes-on-corporate-income))_
- **Does VAT exist** — Yes — Value Added Tax at a standard rate of 15% %  _([Value Added Tax Proclamation No. 1341/2024](https://www.ey.com/en_gl/technical/tax-alerts/ethiopia-introduces-new-vat-proclamation-introducing-raft-of-changes))_
- **Annual income tax return deadline (companies / Category A)** — Within 4 months of the end of the tax year (i.e. by 7 November for an 8 July–7 July year) (approx — confirm) (approx — confirm)  _([Tax Administration Proclamation No. 983/2016](https://taxsummaries.pwc.com/ethiopia/individual/tax-administration))_
- **VAT return frequency and deadline** — Monthly, due by the 21st day (per local practice; some sources cite end of the following month) (approx — confirm) (approx — confirm)  _([Value Added Tax Proclamation No. 1341/2024](https://www.vatupdate.com/2025/09/23/ethiopia-broadens-scope-of-vat-registration/))_

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---

## Talk to a verified accountant

This guide is maintained by the OpenAccountants network — accountants who put
their name behind the tax answers AI gives people. The live, always-current
version (and the professional behind it) is at
[openaccountants.com](https://www.openaccountants.com).

- Use it in your AI: https://www.openaccountants.com/connect
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> **General reference only.** This document does not constitute tax, legal, or
> financial advice. Verify figures against the cited primary sources or with a
> licensed professional before relying on them.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `et-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/et-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.