Ethiopian Ministry of Finance Publishes Proclamation Containing Several Tax Changes from July 2025

Ethiopia's Ministry of Finance has published the Income Tax (Amendment) Proclamation No. 1395/2025, which was enacted in July 2025, amending several provisions of Federal Income Tax Proclamation No. 979/2016. The main changes are summarized as follows:

• The taxpayer category system is changed from three to two categories:
  • Category A, which includes all corporate bodies (companies), regardless of income, and any individual with an annual gross income of ETB 2,000,000 or more; and
  • Category B, …