Summary
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Proclamation No. 1395/2025 amends Ethiopia’s Federal Income Tax law (No. 979/2016) to broaden the tax base, update rates and introduce new categories for digital‑content and small‑business income, limit cash transactions, and align the system with modern economic realities; the changes take effect for income earned from July 8 2025 (with specific provisions phased in through August 2025).
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