Economy
Ministry of Revenues Imposes Income Tax on Digital Content
BirrMetrics · 8 hours ago · Read the Full Story on BirrMetrics
AI SUMMARY
The Ministry of Revenues has issued new rules subjecting digital content creators earning over 50,000 birr annually to income tax as part of efforts to integrate the digital economy into the formal tax system.
- Digital content creators earning more than 50,000 birr annually are subject to income tax under rules issued by the Ministry of Revenues.
- Platforms are required to report payments quarterly and auditors are authorized to examine bank records.
- Creators earning below the 50,000 birr threshold can have previously paid taxes refunded or offset against future liabilities.
- Professional creators are subject to business income tax with progressive rates reaching 35 percent for income above 168,000 birr, allowing expense deductions.
- Informal creators without formal books of account fall under Schedule D and are taxed at 15 percent of gross income without expense deductions.
- Rules apply equally to resident creators operating across borders through foreign accounts or foreign banks.
- To report quarterly on user identity and payment data, intermediaries must comply while the Addis Ababa City Administration Revenues Bureau conducts forensic bank analyses comparing deposits to declared income.
- An earlier draft set the threshold at 100,000 birr annually, but the final framework settled on 50,000 birr.
- The 2025/26 budget proposal forecasts total government revenue approaching 1.51 trillion birr, with taxes accounting for approximately 73 percent, as officials target a tax-to-GDP ratio of 15 percent.
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