WorldTax Compareโ† All Comparisons

Japan vs Ethiopia
Tax Rate Comparison

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

๐Ÿ‡ฏ๐Ÿ‡ต Japan
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
5โ€“45%
Basic deduction increase for low earners
No change
0โ€“35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
8โ€“10%
No rate change; digital services tax under review
No change
15%
15% standard
No change
Corporate Tax Rate
Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
30%
30%; industrial parks offer incentives
No change
Capital Gains Tax
Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
15%
15% maintained
No change
Social Security & Payroll
Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 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.

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.

Japan vs Ethiopia: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (5โ€“45% vs 0โ€“35%). ๐Ÿ‡ช๐Ÿ‡น Ethiopia is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Ethiopia has a higher consumption tax (8โ€“10% vs 15%).

๐Ÿข Corporate Tax: ๐Ÿ‡ช๐Ÿ‡น Ethiopia offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ช๐Ÿ‡น Ethiopia taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.

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