What is Gig Taxation?
How is it hindering Ethiopian Youth Creativity?
In Ethiopia, individuals and entities engaged in business activities are required to obtain a Tax Identification Number (TIN) to fulfill their tax obligations. The TIN is a unique identification number that is used for various tax-related purposes, including withholding tax.
Withholding tax is a mechanism where the tax is deducted at the source of payment. It is typically withheld by the payer of income and remitted to the tax authority on behalf of the recipient. The rates and thresholds for withholding tax can vary depending on the type of income and the recipient’s tax status.
How is it hindering Ethiopian Youth Creativity?
Generally, payments for supply of goods (worth ETB 10,000 or more) and provision of services (worth ETB 3,000 or more) to a resident person are subject to WHT at the rate of 2%.
The 2% WHT applies if the supplier provides a valid tax identification number (TIN) and a business licence. If the TIN and the licence are not provided at the time of making the payment, the payer is required to subject the payment to a 30% WHT rate.
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The government should draft policies that cater
the creation and innovation of the Youth
the creation and innovation of the Youth