Ethiopia

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

There are no property taxes in Ethiopia. 

Luxury and excise taxes

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