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Ethiopia vs Bahamas
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇪🇹 Ethiopia
vs
🇧🇸 Bahamas
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
0%
No income tax maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
15% standard
No change
10%
10% VAT maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30%; industrial parks offer incentives
No change
0%
No CIT; Pillar Two compliance via domestic top-up
No change

Capital Gains Tax

Capital Gains Tax
15%
15% maintained
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~17%
Pension expansion targeted
No change
~9.8%
NIB; hurricane recovery spending affecting fiscal position
No change
State, Regional & Local Taxes

🇪🇹 EthiopiaRegional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

🇧🇸 BahamasLocal Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax — making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Ethiopia vs Bahamas: Key Tax Differences (2026)

💰 Income Tax: 🇪🇹 Ethiopia has a higher top income tax rate (0–35% vs 0%). 🇧🇸 Bahamas is more favourable for high earners.

🛒 VAT/Sales Tax: Ethiopia has a higher consumption tax (15% vs 10%).

🏢 Corporate Tax: 🇧🇸 Bahamas offers a lower corporate rate (0% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇧🇸 Bahamas taxes investment gains at a lower rate (0% vs 15%), benefiting investors.

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