Ethiopia taxes digital creators
New rules require influencers and online freelancers to declare earnings and pay taxes.
Ethiopia has introduced new income tax rules for digital content creators, including social media influencers and online freelancers, requiring them to declare earnings and pay taxes. Regulation No. 597/2026, published on October 28, mandates that income from digital platforms will be subject to business income tax or a 15 percent tax rate on other income.
Creators must maintain accurate financial records of all income, both domestic and foreign, including cash and non-cash payments from advertisements, sponsorships, and subscriptions. Those taxed under Schedule D, with annual earnings exceeding 50,000 birr, must pay a 15 percent tax quarterly.
Online platforms and payment facilitators must report Ethiopian-resident creators and their earnings to the Tax Authority quarterly. The Tax Authority can monitor creators' activities and cooperate with international platforms to gather earnings information, clarifying that foreign registration or payment locations do not exempt residents from tax obligations.
Why it mattersDigital content creators earning over 50,000 birr annually must now register, declare income quarterly, and pay a 15 percent tax.