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Netherlands vs Ethiopia
Tax Rate Comparison

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

🇳🇱 Netherlands
vs
🇪🇹 Ethiopia
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
9.32–49.5%
Box 3 reform: actual returns taxed (not deemed)
No change
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
9–21%
Reduced 9% rate under review
No change
15%
15% standard
No change

Corporate Tax Rate

Corporate Tax Rate
19–25.8%
Stable; Pillar Two global minimum tax applies
No change
30%
30%; industrial parks offer incentives
No change

Capital Gains Tax

Capital Gains Tax
~38%
Box 3 new regime: actual return basis
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
~28%
AOW/WW/WIA contributions ceiling raised
+0.4pp vs 2025
~17%
Pension expansion targeted
No change
State, Regional & Local Taxes

🇳🇱 NetherlandsMunicipal & Water Board Taxes

The Netherlands is a unitary state — income tax is set nationally. Municipalities levy property taxes (OZB) and water boards (waterschappen) charge annual water management levies. The Box 3 system is under ongoing reform following Supreme Court rulings. New Box 3 reform taxes actual returns from 2027.

🇪🇹 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.

⚠️ 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.

Netherlands vs Ethiopia: Key Tax Differences (2026)

💰 Income Tax: 🇳🇱 Netherlands has a higher top income tax rate (9.32–49.5% vs 0–35%). 🇪🇹 Ethiopia is more favourable for high earners.

🛒 VAT/Sales Tax: Netherlands has a higher consumption tax (9–21% vs 15%).

🏢 Corporate Tax: 🇳🇱 Netherlands offers a lower corporate rate (25.8% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 38%), benefiting investors.

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