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Mar 20
Ethiopia has a progressive tax system, with different tax rates for individuals and businesses based on their income levels. The main types of taxes in Ethiopia include income tax, value-added tax (VAT), customs duties, excise taxes, and withholding taxes.
Individuals in Ethiopia are subject to income tax on their worldwide income, with rates ranging from 0% to 35% depending on their income level. Businesses are also subject to income tax on their profits, with rates ranging from 10% to 30% depending on the type of business and its size.
Value-added tax (VAT) is levied on the sale of goods and services in Ethiopia at a standard rate of 15%. Customs duties are imposed on imported goods at rates ranging from 0% to 35%, depending on the type of goods and their country of origin. Excise taxes are imposed on certain goods such as alcohol, tobacco, and luxury items at rates ranging from 10% to 100%.
Withholding taxes are also levied on payments made to non-residents, with rates ranging from 2% to 30% depending on the type of payment. Additionally, there are various other taxes and fees that may apply to specific industries or activities in Ethiopia.
Overall, the Ethiopian taxation system is complex and can be challenging to navigate, especially for foreign businesses operating in the country. It is important for individuals and businesses to consult with a tax professional to ensure compliance with the tax laws and regulations in Ethiopia.
Individuals in Ethiopia are subject to income tax on their worldwide income, with rates ranging from 0% to 35% depending on their income level. Businesses are also subject to income tax on their profits, with rates ranging from 10% to 30% depending on the type of business and its size.
Value-added tax (VAT) is levied on the sale of goods and services in Ethiopia at a standard rate of 15%. Customs duties are imposed on imported goods at rates ranging from 0% to 35%, depending on the type of goods and their country of origin. Excise taxes are imposed on certain goods such as alcohol, tobacco, and luxury items at rates ranging from 10% to 100%.
Withholding taxes are also levied on payments made to non-residents, with rates ranging from 2% to 30% depending on the type of payment. Additionally, there are various other taxes and fees that may apply to specific industries or activities in Ethiopia.
Overall, the Ethiopian taxation system is complex and can be challenging to navigate, especially for foreign businesses operating in the country. It is important for individuals and businesses to consult with a tax professional to ensure compliance with the tax laws and regulations in Ethiopia.
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