Business Income/Profit Tax in Ethiopia: Tax Rates and deductions
According to Proclamation 286/2002 a tax is imposed on commercial, professional or vocational activity or any other activity recognized as trade by the commercial code of Ethiopia and carried on by any person for profit.
- Taxable business income of bodies (eg., PLC, Share Company) is taxable at the rate 30%;
- Taxable business income of other taxpayers is taxed in accordance with the following Table;
No | Taxable Business Income /Per Year/ | Tax Rate (%) | Deduction in Birr | |
01 | 0 | 1,800 | Exempted (Non-taxable) | None |
02 | 1,801 | 7800 | 10 | 180.00 |
03 | 7801 | 16,800 | 15 | 570.00 |
04 | 16,801 | 28,200 | 20 | 1410.00 |
05 | 28,201 | 42,600 | 25 | 2520.00 |
06 | 42,601 | 60,000 | 30 | 4950.00 |
07 | Over 60,000 |
| 35 | 7950.00 |
