Withholding Tax Proclamation In Ethiopia Pdf Best -

Introduction

1. Limited taxpayer awareness: Many taxpayers in Ethiopia are not aware of their withholding tax obligations, which can lead to non-compliance.
2. Inadequate infrastructure: The ERA's infrastructure, including its IT systems, may not be sufficient to support the effective implementation of withholding tax.
3. Corruption and tax evasion: Corruption and tax evasion are significant challenges in Ethiopia, which can undermine the effectiveness of withholding tax.

| Type of Payment | Withholding Rate | Threshold (ETB) | | :--- | :--- | :--- | | Real estate rent (building) | 5% | Above 600 ETB/year | | Real estate rent (other) | 2% | Above 600 ETB/year | | Contractors (local) | 2% | Above 10,000 ETB/payment | | Transport services | 1% | Above 2,000 ETB/payment | | Consultancy & technical fees | 10% | No threshold | | Lottery/prize winnings | 15% | Any amount |

• Governing Law: The main legal basis is the Federal Income Tax Proclamation No. 979/2016.
• Implementing Regulation: The Council of Ministers Income Tax Regulation No. 410/2017 provides the specific rates and lists of goods/services subject to withholding.

Here are the key features and details regarding the Withholding Tax (WHT) regime in Ethiopia: withholding tax proclamation in ethiopia pdf best