Under the new 2025 amendment, the standard WHT rate for domestic transactions has increased from 2% to . This applies to:
To ensure the effective implementation of the withholding tax proclamation in Ethiopia, the following best practices are recommended:
A new Digital Service Tax (DST) has been introduced, capped at 5%, applying to both residents and non-residents earning income from digital services provided in Ethiopia. withholding tax proclamation in ethiopia pdf best
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The 2025 amendment increased several key rates to broaden the tax base and align with current economic conditions. Payment Type New Rate (2025) Previous Rate Supply of Goods Supply of Services Non-Resident Technical/Mgmt Fees 15% (Unchanged) Digital Content Creation New Category 2. Mandatory Thresholds for Domestic WHT Under the new 2025 amendment, the standard WHT
Withholding agents must adhere to rigorous reporting and payment schedules to avoid heavy financial penalties. Deadlines for Remittance
[Current Month, Year] Authority reference: Ministry of Revenues – Federal Inland Revenue Authority. Payment Type New Rate (2025) Previous Rate Supply
: Generally 10% , though specific financial institution transactions can reach up to 30%.
: Must be withheld if the payment is ETB 20,000 or more .