Withholding Tax Proclamation In Ethiopia Pdf Best Guide
The current legal framework for withholding tax (WHT) in is primarily governed by the Federal Income Tax (Amendment) Proclamation No. 1395/2025, which significantly updated the rules established in the original Federal Income Tax Proclamation No. 979/2016.
- Salaries, wages, and pensions
- Rent and royalties
- Dividends and interest
- Fees for professional services
- Commissions and brokerage fees
Obligations of a withholding agent:
As of early 2026, the following withholding rates apply under the amended schedules: Income Type Resident Rate Non-Resident Rate Dividends 15% (previously 10%) Interest 10% (PE/Savings) Royalties 5% (Art/Culture) 10% (Other) Management/Technical Fees Games of Chance 20% (previously 15%) Repatriated Profits Digital Content Creation 15% (if non-professional) Up to 5% (Digital Services Tax) Compliance and Administration Tax - KPMG agentic corporate services withholding tax proclamation in ethiopia pdf best
✅ Best PDF Resource: For the official text, search for “Proclamation No. 979/2016, Federal Negarit Gazeta” or check the Ministry of Revenues website. We’ve linked the cleanest PDF version below. (Note: Insert actual PDF link or download widget here). The current legal framework for withholding tax (WHT)
Threshold for Goods: Applies to payments exceeding ETB 20,000 per contract. Salaries, wages, and pensions Rent and royalties Dividends