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 |