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New Income tax on salary introduced

Ethiopia has introduced a new income tax on salary. Officials from the finance and economy ministry said the new tax rate takes into account the varying income levels of the tax payers. 

 The Ministry of Finance and Economic Cooperation (MoFEC) has announced today the newly amended draft income tax proclamation.

The newly amended proclamation reduced the taxation of income from employees and took into account the earnings of the society, said Wasihun Abate, Legal Service Director at MoFEC.

Discussion on the proclamation will be held on Thursday and Friday with the business community, foreign companies and professional associations, he said.

The new proclamation will be effective as of July 1, 2008 EC after it is approved by the House of People’s Representatives.

 

 

Source: FBC 


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  • Trit Mohammed Added Salary of the employment, number of nation , level of administration are related according to constitution of Ethiopia by any means the exempt amount of salary is not greater than 550 Bir .
  • Trit Mohammed Added WE try to per pair the research on the new income tax proclamation no. 938/2016
  • Trit Mohammed Added OVER ----------- TO
    O------------585
    We can say that unless other wise we can't deduct deduction fee
  • Trit Mohammed Added Ethiopia has introducing a new income tax on salary. official from the finance and economy ministry.
    But the new tax rate taken to in account the increasing the gap between poor and rich income level of the tax payers.
  • Trit Mohammed Added by any means the tax bracket of threshold can not greater than 550 according to constotution of Ethiopia.
  • Trit Mohammed Added As effective date in forced the new proclamation the oldest proclamation 286/2002 Article 6 can done.
  • Trit Mohammed Added We did pay may salsry of two nanths
  • Trit Mohammed Added According to Tax Administration ----2016 we try to give a number to this proclamation 183/2016 As we related to this proclamation according to this pro Article 98 and aarticle 99(1) until the day of force the oldest proclamation 286/2002 Article 6 must be done.
  • TRIT MOHAMMED OMAR Added IF WE STARTED WITH 0-----600 THE PROGRESSIVE TAX SYSTEM AS FOLLOWS
    0----- 600 threshold Deduction fee 0.00
    601--------2,600 10% 60.00
    2,601-- ---5,600 15% 190.00
    5,601-----9,400 20% 470.00
    9,401-----14,200 25% 940.00
    14,201----20,000 30% 1,650
    over 20,000 35% 2,650 THEREFORE TAX BRACKET OF 2016 G.C ARE SIMILAR TO THIS ?
  • TRIT MOHAMMED OMAR Added 0--375 threshold 0
    376--1,62A 10% 37.5
    1,62B--3,50C 15% 118.75
    3,50D--5,87E 20% 293.75
    5,87F--8,87G 25% 586.5
    8,87H--12,50K 30% 1,031.25
    Over 12,50K 35% 1,656.25
    THIS IS PROGRESSIVE TAXATION SYSTEM

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