Ethiopia vs Malawi
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
πͺπΉ 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.
π²πΌ Malawi β District & City Councils
Malawi's 28 district councils and city/town assemblies levy property rates, trading licences, and local service charges. The Malawi Revenue Authority (MRA) administers national taxes. Malawi is landlocked and one of the world's poorest countries β highly dependent on tobacco exports (declining due to health campaigns), tea, and sugar, plus significant international aid. An IMF Extended Credit Facility has been supporting fiscal consolidation. The kwacha has experienced significant depreciation, complicating tax bracket real values over time.
Ethiopia vs Malawi: Key Tax Differences (2026)
π° Income Tax: Ethiopia and Malawi have similar top income tax rates (0β35% vs 0β35%).
π VAT/Sales Tax: Malawi has a higher consumption tax (15% vs 16.5%).
π’ Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).
π Capital Gains: πͺπΉ Ethiopia taxes investment gains at a lower rate (15% vs 30%), benefiting investors.