Dividend, interest and royalty tax calculator Ethiopia
Dividends, interest, royalties and winnings from games of chance are each taxed at a flat rate on the gross amount. Choose the type of income and enter the amount to see the tax and what is left.
The rates are those of Proclamation 1395/2025 for income derived from 8 July 2025.
How it's calculated
- Dividend: 15% of the gross dividend.
- Interest: 10% of the gross interest.
- Royalty: 10%, or 5% for royalties from art and culture.
- Winnings from games of chance held in Ethiopia: 20% of the gross winnings.
An example
A dividend of ETB 10,000 pays ETB 1,500 of tax and leaves ETB 8,500.
Frequently asked questions
Are expenses deducted first?
No. These taxes apply to the gross amount of the dividend, interest, royalty or winnings.
Is interest earned by a bank taxed this way?
No. Interest a financial institution earns on deposits with another financial institution is business income under Schedule C.
What about non-residents?
A non-resident with a permanent establishment in Ethiopia pays 15% on dividends and 10% on interest attributable to it.
Key terms
- Dividend
- A share of profit paid by a company to its shareholders.
- Royalty
- A payment for the use of a right, such as a copyright or a patent.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
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