Here are some examples of the average daily income estimation with annual tax calculation. (አማካይ የቀን ገቢ ግምት እና አመታዊ ግብር በምሳሌ)

Example 1 – Business Type : Tailor (ልብስ ስፌት)

Daily income estimate :  1,200 birr

Annual Income = 1,200 birr x 300 days

Annual Income = 360,000 birr

Estimated Profit for this business sector = 10% (For 350,000 birr – 375,000 birr)

Annual Profit = 375,000 birr x 10%

Annual Profit = 37,500 birr

The above annual profit will be the taxable income. According to ethiopian business income tax rates, 37,500 birr will have a 15% tax rate and 1,710 birr deduction.

So, the total tax to be paid will be (37,500 birr x 15%) – 1,710 birr)

Total Payable Tax = (5,625 birr) – 1,710 birr

Total Payable Tax = 3,915 birr