: The standard withholding tax rate has increased from 2% to 3% .
Businesses must adhere to strict filing requirements to avoid penalties:
: A simplified overview of the key changes from Legal Service Ethiopia. Income Tax (Amendment) Proclamation No.1395/2025 withholding tax proclamation in ethiopia pdf best
: Withheld taxes must generally be paid to the Ethiopian Ministry of Revenues within 30 days after the end of the month in which the tax was withheld.
According to the latest PwC Tax Summary and EY Global alerts , the following rates apply: : The standard withholding tax rate has increased
: The foundational law governing income tax in Ethiopia.
Withholding tax in Ethiopia has undergone major changes with the enactment of the , which updates several provisions from the original Proclamation No. 979/2016 . These reforms significantly impact rates for dividends, services, and digital income. Current Withholding Tax Rates (2025/2026) According to the latest PwC Tax Summary and
: Detailed breakdown of the recent changes from KPMG.