Income Tax Calculation in Ethiopia
Businesses and individuals are subject to different forms of income tax in Ethiopia. Income tax could be discouraging for many businesses if not handled appropriately and professionally. One of the difficulties is income tax calculation in Ethiopia.
Income tax for individuals include:-
- Wages or salary from employment.
- Rent tax from letting a house or building.
- Interest from lending money.
Income tax for business also include some of the above and some more.
- Rent tax from letting house or building,
- Interest from lending or saving money,
- Profit from trading activities.
Both individuals are ordered to pay income tax by income tax proclamations, regulation and directives. The law specifies how and when these individuals have to pay the required tax. And we have attached a Income Tax Proclamation 2008EC or 2016 from ERCA for this details.
This article will focus more on income tax calculation in Ethiopia and how to accomplish it using businessTYC etax system.
Income Tax Calculation in Ethiopia – The new and only way!
For businesses income tax calculation in Ethiopia is automatic on businesstyc etax application. All you have to do is fill the forms on local purchases and sales. The application will take care of the income tax calculation without you knowing it. You can confirm these with our accredited accountants or with any accountant in Ethiopia. Or you can spend hours and hours hiring accountant to do that manually. Yet the end result will be the same with tyc etax system.
Once you calculate tax using businesstyc etax declaration can be made online or using our physical reporting/declaration service. Our online tax service would also support your accountants and your day to day communication with them.