Addis Ababa, August 2025 – Ethiopia’s Ministry of Finance has introduced the country’s first advance income tax payment system, requiring large “Category A” taxpayers to make quarterly payments in addition to their annual tax. The move follows parliament’s approval of the Income Tax (Amendment) Proclamation No. 1395/2025 on July 17, as the government seeks to boost revenue mobilization.
What Changed
- Quarterly cycle: Advance tax is now payable every three months.
- Start date: The three-month period begins from the month following the submission of a financial report.
- Deadline: Payments must be settled within 30 days after each three-month cycle.
- Annual settlement: The month of report submission serves as the final deadline for paying any outstanding annual tax.
Example Timelines
- Companies filing reports in October: advance payments due in February, May, and August; annual tax by October.
- Companies filing in April: advance payments due in August, November, and February; annual tax by April.
- For taxpayers on the Gregorian calendar, the first advance payment is due in August 2025. Others following different fiscal calendars will apply the same principle.
No Comment Found.