Africa

Ethiopia

Corporate rate
30%
Top personal rate
35%
VAT / GST rate
15%
One-sentence summary Ethiopia's corporate tax position: 30. Personal income tax: 35. VAT/consumption tax: 15.

Corporate Tax Rate

Ethiopia's headline corporate income tax (CIT) rate is 30.

Personal Tax Rate

The headline personal income tax (PIT) rate is 35.

VAT / GST Rate

The standard VAT/GST (or equivalent consumption tax) rate is 15. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.

Residency

An individual is an Ethiopian tax resident if present in Ethiopia more than 183 days in a 12-month period, or if Ethiopia is their habitual place of abode. Residents are taxed on worldwide income; non-residents are subject to withholding tax on Ethiopia-source income (e.g., 10% dividends, 5% interest, 5% royalties, 15% technical service fees, 35% employment income unless a treaty applies).

CFC Rules

Ethiopia has no specialized CFC rules.

Thin Capitalization

Ethiopia's thin capitalization rules apply to a foreign-controlled resident entity - one where a non-resident person, alone or with related persons, holds 50% or more of the membership interest - where the entity's average debt-to-average-equity ratio exceeds 2:1 for the tax year. Separately, interest expense is not deductible where the rate exceeds the National Bank of Ethiopia's rate to commercial banks by more than 2 percentage points, unless the funds are borrowed from a recognized financial institution or a foreign bank permitted to lend to Ethiopian enterprises.

Treaty Network

Ethiopia's treaty network is modest, with roughly 20 bilateral tax treaties in force, including China, France, India, Israel, Italy, Kuwait, Romania, Russia, South Africa, Tunisia, Turkiye, and the UK. Ethiopia has no income tax treaty with the United States.

Source: PwC Worldwide Tax Summaries - Ethiopia (secondary compilation, cited per jurisdiction). Rates last reviewed by PwC: 15 July 2026. Page last verified: August 07, 2026. General information only - confirm current rates and any specific position with a licensed advisor in this jurisdiction before relying on this page.