The Ethiopian tax landscape has recently undergone a seismic shift with the enactment of the , which significantly revises the foundational Federal Income Tax Proclamation No. 979/2016 . This legislative evolution reflects Ethiopia's broader strategy to modernize revenue collection, broaden the tax base, and capture the growing digital economy. Core Amendments to Domestic Withholding Rates
As of early 2026, the following withholding rates apply under the amended schedules: Income Type Resident Rate Non-Resident Rate 15% (previously 10%) Interest 10% (PE/Savings) Royalties 5% (Art/Culture) 10% (Other) Management/Technical Fees Games of Chance 20% (previously 15%) Repatriated Profits Digital Content Creation 15% (if non-professional) Up to 5% (Digital Services Tax) Compliance and Administration Tax - KPMG agentic corporate services withholding tax proclamation in ethiopia pdf best