Ethiopian Govt to Tax Foreign Digital Media Creators
Ethiopian Government is considering imposition of tax on non residents who distribute digital media content while being in Ethiopia.
A draft income tax amendment bill has been tabled at the Ethiopian House of People’s Representatives (HoPR). If the draft is approved, individuals in Ethiopia with non resident status will have to pay tax on digital media activities like video-sharing, social media activities, podcasts, or information transmitted by cable, radio, optical fiber, television, or internet satellite, etc. Advertisements and sponsorships, brand agreements and endorsements, partnership transactions, financial donations, or crowdfunding programs will also be taxed under the category of income from digital content creation.
Employees of international institutions in Ethiopia have been ordered to provide information about their digital content creation activities. According to the proposed amendment, the income earned by a non-resident in Ethiopia from the distribution of digital media content within the country will be taxed as if it were earned within the country.
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