Ethiopian Rental Income Tax & TOT Calculator (Schedule ‘B’)
How This Ethiopian Rental Tax & TOT Calculator Works (Schedule ‘B’)
- Taxpayer Type: You can select “Individual” or “Company (Body)” as the tax calculation differs.
- Annual Gross Rental Income: Total rent received from the property during the year.
- Deductions to Arrive at Taxable Rental Income Base:
- A presumed expenditure allowance of 50% of the Annual Gross Rental Income (covers general maintenance, repairs, depreciation, etc.).
- Additionally, Property and Land Use Taxes paid directly for the rented property are deducted from the remaining amount.
- Annual Taxable Rental Income Base = Gross Rental Income – (Gross Rental Income * 50%) – Property Taxes Paid.
- Annual Rental Income Tax Calculation:
- For Individuals: Progressive tax brackets (Schedule ‘B’ rates, identical to annualized Schedule ‘A’) are applied to the Annual Taxable Rental Income Base:
- 0 – 7,200 ETB: 0%
- 7,201 – 19,800 ETB: (Taxable Base * 10%) – 720 ETB
- 19,801 – 38,400 ETB: (Taxable Base * 15%) – 1,710 ETB
- 38,401 – 63,000 ETB: (Taxable Base * 20%) – 3,630 ETB
- 63,001 – 93,600 ETB: (Taxable Base * 25%) – 6,780 ETB
- 93,601 – 130,800 ETB: (Taxable Base * 30%) – 11,460 ETB
- Over 130,800 ETB: (Taxable Base * 35%) – 18,000 ETB
- For Companies (Bodies): A flat 30% tax rate is applied to the Annual Taxable Rental Income Base.
- For Individuals: Progressive tax brackets (Schedule ‘B’ rates, identical to annualized Schedule ‘A’) are applied to the Annual Taxable Rental Income Base:
- Turnover Tax (TOT): Calculated as 10% of the Annual Gross Rental Income. This is an additional tax.
- Total Tax Payable: The sum of the Annual Rental Income Tax and the Turnover Tax (TOT).
- Important: The 50% presumed expenditure rule is a significant provision. Please verify with current Ethiopian tax proclamations or a tax professional to ensure this interpretation (50% for general expenses + separate deduction for property/land taxes before applying income tax rates) aligns with the latest official guidelines for your specific situation. TOT applicability should also be confirmed.
Manage Your Ethiopian Rental Property Finances
Effectively manage your rental property finances in Ethiopia with this specialized Rental Income Tax & TOT Calculator. we have created this calculator to easily find your taxes. This tool will help individual landlords and companies estimate their annual tax obligations under Schedule ‘B’ of the Ethiopian tax proclamation, including their Income Tax and Turnover Tax (TOT).
Understanding your rental tax liabilities (both income tax and TOT) is essential for accurate financial planning. Our Ethiopian tax calculator allows you to input gross rental income and relevant deductions to see an estimated net rental income (taxable base) and the relative taxes.
This income tax calculator for Ethiopia (rental properties) simplifies the estimation of your total tax burden. Get a clearer picture of your potential taxes from your rental investments with this Ethiopian income calculation tool.
If you also earn income from other business activities, you might find our Ethiopian Business Income Tax Calculator useful. For employment income, check our comprehensive Ethiopian Salary Tax Calculator.
Bookmark this Ethiopian Rental Income Tax Calculator for your convenience. Proper tax planning is key to maximizing your returns as a property owner in Ethiopia.