: Payments like dividends, interest, royalties, management, and technical fees to non-residents are subject to withholding at the non-resident tax rate.
For a payment to be subject to the lower 3% rate, the supplier must provide a valid Tax Identification Number (TIN) and a business license. If they fail to provide these documents at the time of payment, the payer is required to withhold tax at a much higher rate of . withholding tax proclamation in ethiopia pdf best
: The principal law governing all income taxes in Ethiopia. Download Proclamation No. 979/2016 PDF (EthioData) : The principal law governing all income taxes in Ethiopia
Deducing the required percentage (3%, 15%, etc.) from payments. The 2025 reforms represent a move toward a
The 2025 reforms represent a move toward a more "fair and modern" system, forcing businesses to prioritize transparency in their financial reporting to navigate the increased withholding obligations and the new digital tax reality.
) applies to foreign digital service providers (e.g., streaming or cloud computing) targeting Ethiopian consumers. Compliance and Administration Federal Tax Administration Proclamation No. 983/2016 , withholding agents are required to: Ethiopia issues a new Income Tax Proclamation