Ethiopia

Individual - Other taxes

Last reviewed - 18 December 2025

Social security contributions

All private organisations are required to register with the Private Organisation Employees Social Security Agency (‘pension fund’). It is mandatory for all Ethiopian citizens to contribute to social security and optional for foreign citizens with Ethiopian origin. Foreign citizens with no Ethiopian origin are not allowed to contribute to the fund.

Employers are required to contribute 11% of the employee’s basic salary to the scheme, while the employee’s contribution is at 7%.

Payment must be remitted by the employer for both the employee and employer contributions within 30 days from the date of deduction. Where a company fails to pay the pension contributions for three months, the Social Security Agency has the power to deduct the contributions in arrears from the company’s bank. All banks are required to cooperate on this.

Capital gains taxes (CGT)

See the Other taxes section in the Corporate tax summary for CGT rates and additional information.

Consumption taxes

Value-added tax (VAT) is levied at a standard rate of 15% on the supply of taxable goods and services in Ethiopia.

See the Other taxes section in the Corporate tax summary for VAT rates and additional information.

Net wealth/worth taxes

There are no net wealth/worth taxes in Ethiopia.

Inheritance, estate, and gift taxes

There are no inheritance, estate, or gift taxes in Ethiopia.

Property taxes

According to Property Tax Proclamation No. 1365/2025 all property owners are required to comply with Ethiopia’s property tax laws. The tax applies to urban land-use rights, buildings, and land improvements. The taxable value is set at 25% of the property’s market or replacement value, and the applicable tax rate ranges from 0.1% to 1%, depending on the type of property.

Property tax is an annual obligation and must be paid to the relevant municipal authority within the prescribed period. This tax is separate from rental income tax under Schedule B of the Income Tax Proclamation, meaning that property owners who lease their property are liable for both taxes.