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Ethiopia

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About

Ethiopia

Capital
Official languages
Population 
Currency

ISO 4217

Addis Ababa

Amharic, Oromo, Tigrinya, Somali, Sidamo, Gurage, Afar, Harari, Hadiyya, Gamo-Gofa-Dawro, Wolaytta, and Silt'e.

112,078,730 (as of July 2020)

Ethiopian Birr

ETB

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Economy

"Ethiopia has seen a steady growth in its economy over the past few years. According to the World Bank, Ethiopia's GDP grew by an average of 8.5% between 2010 and 2019. This growth has been driven by the country's agricultural sector, which accounts for around 45% of the GDP. Additionally, the manufacturing sector has seen a significant increase in output, with the sector contributing around 10% of the GDP. The services sector has also seen a steady increase in output, accounting for around 45% of the GDP.

In terms of foreign investment, Ethiopia has seen a steady increase in the amount of foreign direct investment (FDI) it has received. According to the World Bank, Ethiopia received $3.2 billion in FDI in 2019, up from $2.3 billion in 2018. This increase in FDI has been driven by the country's efforts to attract foreign investors, as well as its growing economy.

Overall, Ethiopia has seen a steady growth in its economy over the past few years, driven by the agricultural, manufacturing, and services sectors. The country has also seen an increase in foreign direct investment, which has helped to further fuel its economic growth."

Taxation

In Ethiopia, both individuals and corporations are subject to income tax. The tax year for individuals is the Ethiopian fiscal year, which runs from July 8 to July 7 of the following year. For corporations, the tax year is the calendar year. 


Individuals are taxed on their employment income, business income, and other sources of income. The tax rates range from 0% to 35%, depending on the amount of income earned. 


Corporations are taxed at a flat rate of 30% on their net profit, with some exceptions for certain sectors, such as agriculture and small-scale manufacturing. Additionally, there is a 10% withholding tax on dividends paid to non-residents.


Taxpayers are required to register for tax and obtain a tax identification number (TIN) before they can make tax payments. Tax returns must be filed annually, and tax payments are due within four months of the end of the tax year. 


Taxpayers can make tax payments at designated banks or through online payment systems. Failure to pay taxes on time can result in penalties and interest charges. Additionally, the Ethiopian Revenue and Customs Authority (ERCA) can take legal action, such as seizing assets or filing a lawsuit, to collect unpaid taxes.

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