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Ethiopia vs Japan
Tax Rate Comparison

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

πŸ‡ͺπŸ‡Ή Ethiopia
vs
πŸ‡―πŸ‡΅ Japan
Tax Year:

πŸ’° Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
5–45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
15%
15% standard
No change
8–10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
30%
30%; industrial parks offer incentives
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
15%
15% maintained
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
~17%
Pension expansion targeted
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

πŸ‡ͺπŸ‡Ή Ethiopia β€” 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.

πŸ‡―πŸ‡΅ Japan β€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (δ½ζ°‘η¨Ž) at a flat 10% on top of national income tax β€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

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

Ethiopia vs Japan: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡―πŸ‡΅ Japan has a higher top income tax rate (0–35% vs 5–45%). πŸ‡ͺπŸ‡Ή Ethiopia is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Ethiopia has a higher consumption tax (15% vs 8–10%).

🏒 Corporate Tax: πŸ‡ͺπŸ‡Ή Ethiopia offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ͺπŸ‡Ή Ethiopia taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.

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