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Income tax

Last activity 18 August 2016 by simienfox

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jbiversen

Hi

I recently moved to Ethiopia (Addis Ababa). I work remotely for a company in Denmark (as a software developer), but I don't pay income tax in Denmark. Can anyone tell me if I should pay tax in Ethiopia, how much, and how?

Thanks and Regards,
Jørgen

Harmonie

Welcome to Expat.com Jørgen!

You may take a look at the different discussions of the forum, it may help.;)

Harmonie.:)

jbiversen

Hi Harmonie

Thanks for your reply. I of course searched the forum before posting my questions, but didn't find anything that matched my situation.

Jørgen

ethioboy123

Hello Jorgen, yes in ethiopia every body paied income tax. it around 10% and will increase depending on your income.
just to share some stories and exchange ideas, you can call me 0921373353.
solomon

suave

jbiversen,

If you are working in Ethiopia, you have to pay income tax. There are two ways for this. You may have a company and pay profit tax (income less eligible business expenses at the /!\ I AM A STUPID SPAMMER /!\0% of the annual profit). You need to have a registered business in Ethiopia to apply this taxation. However, if you are working being employed or personally as a self employed person, the taxation applicable is employment income tax that ranges from 10% to 35% progressively based on your the amount of your monthly income. Monthly earnings less than or equal to Birr 5,000 are taxable at a /!\ I AM A STUPID SPAMMER /!\0% or less. Monthly income over Birr 5,000 is taxed at a /!\ I AM A STUPID SPAMMER /!\5%. Employment taxes should be paid monthly with in 30 days following the month of earning. Business taxes are paid annually in 4 months following the accounting year.

let me know if you need additional info.

Sincerely,
Suave

jbiversen

Hi Suave

Thanks for taking time to answering my question!

I am employed by a company (I don't have a company). Do you know where I should go to pay the tax. Which office should I contact?

Regards,
Jørgen

suave

You may contact the Sub-City Office (kifle-ketema)  nearest to your place and look for the Revenue and Customs office under the Sub City. You need copies of your passport and residence or work permits, inform them about your tax case, fill a form and start paying your taxes monthly.


Sincerely,
Suave

INDIANSMT

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aldwincariaga

ouch. so if i'll be getting 3000usd / month i'll be paying 35% of that?

simienfox

Yes. I would just make sure that you stay in the social security system & pay taxes in your home country. In the Ethiopian social security system, you may get a one-dollar-per-day pension & you may die in Ethiopian hospital for simple disease, even though you had been paying 35% of your 3000USD every month.

In case you are a remote developer, you'll need a work permit though, so you can join an Ethiopian company that will pay you Ethiopian-standard salary (like 50 USD per month) on which you pay tax. I know some Ethiopian software companies if you are interested.

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