Local Taxations

1. What are the different Local Taxations & Filing Requirements?

  • The Ethiopian Revenues and Customs Authority (ERCA) is the body responsible for collecting revenue from customs duties and domestic taxes.
  • The Ethiopian tax system comprises direct and indirect taxes. Direct taxes include personal income tax, rental tax, withholding tax, and corporation tax, among others. The main types of indirect taxes are VAT, customs duty, excise and turn over taxes. Main taxes are summarized in the table below.
 Type of Taxes Rate
1 Corporate Income Tax 30%
2 Turn Over Tax 2% and 10%
3 Excise Tax 10% up to 100%
4 Customs Duties 0% up to 35%
5 Income Tax from Employment 0% up to 35%
6 Withholding Tax 2%
7 Value Added Tax (VAT) 15%
8 Export Tax Nil (with exception of hides and skins-150%)
9 Royalty Tax 5%
10 Dividend Tax 10%