Skip to content
Erudite AfricaCenter of Excellence
← Taxation Fundamentals for Ethiopian Businesses: Tax Awareness and Compliance Essentials

Introduction to Ethiopian Taxation

Module 01 / 6 · 55 min · Free preview

See how Ethiopia's tax system is organized, which taxes a business meets, what taxpayers must do and may expect, and which authorities and laws set the rules today.

In this module you will learn to

  • Describe the main parts of Ethiopia's tax system, its fiscal year and the idea of self-assessment
  • Name the taxes an Ethiopian business commonly deals with and when each applies
  • Explain Category A and Category B taxpayers after Proclamation No. 1395/2025
  • List the key rights and obligations of taxpayers and the authorities and laws that set them

Built on

  • Erudite Africa training curriculum: Taxation Fundamentals for Ethiopian Businesses, Level 1 Beginner (October 2026)
  • Income Tax Proclamation No. 979/2016 as amended by Income Tax (Amendment) Proclamation No. 1395/2025: taxpayer categories, PAYE table, Category B gross sales tax, withholding, cash payment limit and repeal of the Turnover Tax Proclamation No. 308/2002 (rates as summarized by PwC, KPMG, EY and Grant Thornton Ethiopia)
  • VAT Proclamation No. 1341/2024, VAT Regulation No. 570/2025, VAT Registration Directive No. 1104/2025 and Electronic Invoicing System Administration Directive No. 1142/2026
  • Federal Tax Administration Proclamation No. 983/2016 as amended by Proclamation No. 1434/2026, and the Ministry of Revenues' penalty waiver Directive No. 189/2025
  • Private Organization Employees' Pension Proclamation No. 1268/2022 and Labour Proclamation No. 1156/2019
  • Commercial Registration and Business Licensing Proclamation No. 980/2016 as amended by No. 1150/2019, Commercial Code Proclamation No. 1243/2021 and Financial Reporting Proclamation No. 847/2014

Examples and companies are fictional. Tax rates and rules are shown as they stood when the course was written; always check the current proclamations, directives and guidance from the Ministry of Revenues before filing, and take professional advice for your own case.