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Barbados vs Ethiopia
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ง๐Ÿ‡ง Barbados
vs
๐Ÿ‡ช๐Ÿ‡น Ethiopia
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
12.5โ€“28.5%
28.5% top; competitive Caribbean jurisdiction
No change
0โ€“35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
17.5%
17.5% stable
No change
15%
15% standard
No change
Corporate Tax Rate
Corporate Tax Rate
5.5โ€“9%
Tiered rate; Pillar Two compliance for large groups
No change
30%
30%; industrial parks offer incentives
No change
Capital Gains Tax
Capital Gains Tax
0%
No CGT โ€” sustained advantage
No change
15%
15% maintained
No change
Social Security & Payroll
Social Security / Payroll
~18.1%
NIS contributions; pension reform needed
No change
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

๐Ÿ‡ง๐Ÿ‡ง Barbados โ€” Parish Councils & Land Tax

Barbados's 11 parishes have parish councils that levy land tax at 0.1%โ€“0.7% of site value. Barbados has long been a significant international business and financial centre, particularly for Canadian companies. Major tax reform in 2019 aligned Barbados with OECD BEPS standards. A tiered corporate tax rate structure was introduced. Barbados was removed from the EU tax haven blacklist following these reforms and maintains competitiveness as an IFC.

๐Ÿ‡ช๐Ÿ‡น Ethiopia โ€” Regional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Barbados vs Ethiopia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ช๐Ÿ‡น Ethiopia has a higher top income tax rate (12.5โ€“28.5% vs 0โ€“35%). ๐Ÿ‡ง๐Ÿ‡ง Barbados is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Barbados has a higher consumption tax (17.5% vs 15%).

๐Ÿข Corporate Tax: ๐Ÿ‡ง๐Ÿ‡ง Barbados offers a lower corporate rate (9% vs 30%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ง๐Ÿ‡ง Barbados taxes investment gains at a lower rate (0% vs 15%), benefiting investors.

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