The regulatory framework for withholding tax in is currently governed by Federal Income Tax Proclamation No. 979/2016 as amended by the Income Tax (Amendment) Proclamation No. 1395/2025 Recent Legislative Overhaul: Proclamation 1395/2025 Enacted on July 17, 2025
The primary legislation for withholding tax in Federal Income Tax Proclamation No. 979/2016 , which was significantly updated by the Income Tax (Amendment) Proclamation No. 1395/2025 Key Proclamation Documents (PDFs) Income Tax (Amendment) Proclamation No. 1395/2025 withholding tax proclamation in ethiopia pdf best
Standard Rate Increase: The WHT rate on domestic payments for goods and services has increased from 2% to 3%. Revised Thresholds: The regulatory framework for withholding tax in is
To verify that you have the correct PDF, look for these specific provisions. The withholding tax rules are primarily found in Part VI – Withholding Tax (Sections 52–61). 979/2016 , which was significantly updated by the
Local Withholding Tax Rate: Increased to 3% (previously 2%) on gross payments for domestic goods and services. Threshold Increases:
I am looking for the best available PDF version of the current Withholding Tax Proclamation in Ethiopia. The primary legal instrument is Proclamation No. 318/2002 (Income Tax Proclamation), particularly its provisions on withholding tax (Articles 50–60), as well as any subsequent amendments (e.g., Proclamation No. 979/2016 or No. 1087/2018).
Benefits of Withholding Tax