A draft proclamation to amend Ethiopia’s nine-year-old Income Tax Proclamation has been included in a sub-article that will impose a 15 percent tax on income from digital content creation.
According to the proposed draft amendment to the proclamation, income from social media (such as YouTube, Facebook, Instagram, TikTok and other platforms), information distributed on the internet, as well as transactions made, sponsorships and other digital content creation will be subject to tax.
Ethiopia will impose a 15% tax on the money earned from the creation of digital content on platforms like YouTube and TikTok. A draft proclamation to amend Ethiopia’s Income Tax Proclamation, which has been in force for nine years, includes a 15 percent tax on the proceeds from the creation of digital content. According to the proposed draft amendment to the proclamation, information exchanged online, transactions, sponsorships, income from social media (including YouTube, Facebook, Instagram, TikTok, and other platforms), and other digital content creation will all be subject to taxes.
The House of People’s Representatives is currently reviewing the draft proclamation, which states that the money earned from these economic activities will be classified as company income and subject to taxes. If the revenue does not meet the requirements of the proclamation, it will be classified as “Other Income” and subject to 15% (fifteen percent) taxation. Additionally, it requires platforms that facilitate the payment of creators of digital content to provide a report to the tax office that lists the total amount paid to each creator.
It then requires digital content creators to obtain a Taxpayer Identification Number (TIN), disclose their income, and pay additional taxes.