You are here: Forum > Living in Africa > Ethiopia > Addis Ababa > Tax > Income tax

#1  2011-11-07 12:46:18

jbiversen
New member
From: Addis Ababa
Registered: 2011-11-07
Posts: 3

Income tax

Hi

I recently moved to Ethiopia (Addis Ababa). I work remotely for a company in Denmark (as a software developer), but I don't pay income tax in Denmark. Can anyone tell me if I should pay tax in Ethiopia, how much, and how?

Thanks and Regards,
Jørgen




 
 
 

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#2  2011-11-07 14:31:51

Harmonie
ViP
Harmonie
From: Mauritius/Ile Maurice
Registered: 2011-06-13
Posts: 19273

Re: Income tax

Welcome to Expat Blog Jørgen!

You may take a look at the different discussions of the forum, it may help.wink

Harmonie.smile




 

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#3  2011-11-07 15:24:37

jbiversen
New member
From: Addis Ababa
Registered: 2011-11-07
Posts: 3

Re: Income tax

Hi Harmonie

Thanks for your reply. I of course searched the forum before posting my questions, but didn't find anything that matched my situation.

Jørgen




 
 
 

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#4  2011-11-08 08:29:32

ethioboy123
Contributor
ethioboy123
From: addis ababa
Registered: 2007-11-16
Posts: 159

Re: Income tax

Hello Jorgen, yes in ethiopia every body paied income tax. it around 10% and will increase depending on your income.
just to share some stories and exchange ideas, you can call me 0921373353.
solomon




 
 
 
 

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#5  2011-11-10 09:20:58

suave
Active member
From: Addis Ababa
Registered: 2009-03-22
Posts: 97

Re: Income tax

jbiversen,

If you are working in Ethiopia, you have to pay income tax. There are two ways for this. You may have a company and pay profit tax (income less eligible business expenses at the rate of 30% of the annual profit). You need to have a registered business in Ethiopia to apply this taxation. However, if you are working being employed or personally as a self employed person, the taxation applicable is employment income tax that ranges from 10% to 35% progressively based on your the amount of your monthly income. Monthly earnings less than or equal to Birr 5,000 are taxable at a rate of 30% or less. Monthly income over Birr 5,000 is taxed at a rate of 35%. Employment taxes should be paid monthly with in 30 days following the month of earning. Business taxes are paid annually in 4 months following the accounting year.

let me know if you need additional info.

Sincerely,
Suave




 
 
 

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#6  2011-11-10 09:28:26

jbiversen
New member
From: Addis Ababa
Registered: 2011-11-07
Posts: 3

Re: Income tax

Hi Suave

Thanks for taking time to answering my question!

I am employed by a company (I don't have a company). Do you know where I should go to pay the tax. Which office should I contact?

Regards,
Jørgen




 
 
 

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#7  2011-11-10 09:40:43

suave
Active member
From: Addis Ababa
Registered: 2009-03-22
Posts: 97

Re: Income tax

You may contact the Sub-City Office (kifle-ketema)  nearest to your place and look for the Revenue and Customs office under the Sub City. You need copies of your passport and residence or work permits, inform them about your tax case, fill a form and start paying your taxes monthly.


Sincerely,
Suave




 
 
 

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#8  2012-02-24 09:06:02

INDIANSMT
New member
From: Pune
Registered: 2012-02-24
Posts: 1

Re: Income tax

(Moderated: please post in the classifieds)




 
 
 
 

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#9  2012-04-08 16:42:08

fikirte
New member
fikirte
From: Doha
Registered: 2009-10-16
Posts: 4

Re: Income tax

your company must deduct you and pay it to the respective gov office you dont have to go and ask them to take your money
pls contact your own company or your Embassy
But make sure if you have to pay they wont leave you just wait for them.

Regards




 
 
 

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