Ethiopia’s revised Income Tax Proclamation took effect as of July 2025, introducing major changes aimed at improving tax equity, transparency, and digital compliance. The amended law expands the tax base to include digital content creators and cross-border digital services, adjusts employment and rental income brackets, introduces new business income thresholds, and implements a Minimum Alternative Tax for certain categories of taxpayers. It also includes clearer guidelines for professional service providers, dividend taxation, and digital payments. This full document, complete with explanatory notes, offers businesses and legal professionals an authoritative reference for navigating Ethiopia’s evolving tax landscape.
