Ethiopia vs Nicaragua
Tax Rate Comparison
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๐ฐ Personal Income Tax Calculator
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๐ช๐น Ethiopia โ Regional 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.
๐ณ๐ฎ Nicaragua โ Municipal Taxes
Nicaragua's 153 municipalities levy the Impuesto de Matrรญcula (2% of prior revenues), Impuesto Municipal sobre Ingresos (IMI at 1% of monthly revenues), property tax (IBI at 1%), and service fees. Nicaragua under Ortega government has faced significant economic disruption from 2018 protests and subsequent international isolation. The economy has stabilized somewhat but remains one of the poorest in Central America. Tax administration reform has been ongoing with support from international institutions.
Ethiopia vs Nicaragua: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ช๐น Ethiopia has a higher top income tax rate (0โ35% vs 0โ30%). ๐ณ๐ฎ Nicaragua is more favourable for high earners.
๐ VAT/Sales Tax: Both countries have comparable consumption tax rates (15% vs 15%).
๐ข Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).