Ethiopia Rental Income Tax Calculator (Schedule B)
Estimate annual tax on building and property rentals (แจแคแต แชแซแญ แแข แแฅแญ) in Ethiopia. Supports progressive individual rates (0% to 35%), the statutory 50% maintenance deduction, and 30% corporate entities.
Annual Tax: 24,000.00 ETB
On 240,000.00 ETB gross rental income (20,000.00 ETB/mo). 50% statutory maintenance allowance applied (120,000.00 ETB taxable base).
โ๏ธ Rental Property Details
Total contractual rent received from tenants across all properties.
๐งพ Schedule B Tax Statement Annual Return
โ๏ธ Schedule B Statutory Scale
โข 0 โ 7,200 ETB: 0% | 7,201 โ 19,800: 10% (ded. 720)
โข 19,801 โ 38,400: 15% (ded. 1,710) | 38,401 โ 63,000: 20% (ded. 3,630)
โข 63,001 โ 93,600: 25% (ded. 6,780) | 93,601 โ 130,800: 30% (ded. 11,460)
โข Over 130,800 ETB: 35% (ded. 18,000 ETB)
Frequently Asked Questions (FAQ)
How is rental income taxed in Ethiopia under Schedule B? +
Under Schedule B of Federal Income Tax Proclamation No. 979/2016, income from the rental of buildings is taxed progressively for individual landlords (from 0% on the first 7,200 ETB up to 35% over 130,800 ETB) and at a flat 30% for corporate entities.
What is the 50% statutory standard deduction for rental properties? +
Under Article 15(2), an individual taxpayer who does not maintain formal books of account is granted a statutory standard allowance of 50% of the gross rental income to cover repairs, maintenance, management, and depreciation without needing to provide receipts.
Can a landlord deduct actual expenses instead of the 50% allowance? +
Yes. Landlords who maintain complete and verified accounting records and receipts can deduct actual justified operational costs, municipal land lease fees, property maintenance, and depreciation.
When must rental tax be declared and paid in Ethiopia? +
Category B individual taxpayers must submit declarations and remit rental tax to the Ministry of Revenues during the month of Hamle (July 8 to August 6), following the close of the Ethiopian fiscal year on Sene 30.
Is lease income from land subject to Schedule B rental tax? +
Schedule B applies specifically to the rental of buildings and premises. The sub-leasing of bare land is also captured under federal income tax regulations.
๐ Ethiopian Ministry of Revenues (MoR) & POESSA Pension Matrix
| Statutory Component / Legal Deduction Item | Calculated Amount (ETB) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 ETB |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Ethiopian Ministry of Revenues & Labor Proclamation 1156 Lead
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.