Ethiopia's federal government is preparing to formalize taxation on digital content creators operating online. It targets those earning at least 100,000 birr annually from platforms. Draft regulations from the Finance Ministry require registration, tax identification numbers, and receipt issuance for all earnings.
Officials from Ethiopia's Finance Ministry are advancing plans to impose taxes on digital content creators who operate online. The initiative focuses on individuals earning more than 100,000 birr per year through various platforms. Under the proposed regulations, creators must register with the tax authority, secure a Tax Identification Number, and provide receipts for every transaction.
Both cash payments and in-kind compensations will face income tax obligations. Creators are required to file quarterly declarations and make payments within 30 days after each quarter ends. This move by the government aims to integrate the burgeoning digital content economy into the formal tax system.
As online content creation grows rapidly in Ethiopia, formalizing these earnings could broaden the tax base without stifling innovation. The draft rules are still under review and may be adjusted before implementation. No specific timeline for enactment has been announced.