Ethiopia’s Social Meida Tax targets Tik Tok too
By: Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia – Ethiopia plans to introduce a 15% income tax on earnings from digital content creation, including platforms like YouTube and TikTok.
A proposed amendment to Ethiopia’s nine-year-old income tax proclamation includes a new sub-article that would impose a 15% tax on income derived from digital content creation.
According to the draft amendment, this tax will apply to income from social media platforms such as YouTube, Facebook, Instagram, TikTok, and other similar platforms, local media reported. It also covers earnings from information disseminated online, transactions, sponsorships, and other forms of digital content creation.
The draft proclamation, currently under discussion in the House of Peoples’ Representatives, states that if these economic activities are conducted regularly, the income will be classified as “business income” and subject to business income tax. However, if the income does not meet the criteria outlined in the proclamation, it will be categorized as “other income” and subject to a 15% tax on the gross amount.
Furthermore, platforms facilitating payments to digital content creators will be required to submit reports to the tax authority detailing the amounts paid to each creator. Consequently, digital content creators will be responsible for obtaining a Taxpayer Identification Number (TIN), declaring their income, and fulfilling other taxpayer obligations.
Starting July 15, 2025, YouTube’s Partner Program announced its policy updates, stating that it will no longer monetize mass-produced, templated, or repetitive content. The updated policy emphasizes that only genuinely original content with substantial human input—including commentary, transformation, or creative editing—will qualify for monetization.
YouTube clarified that this is a refinement of existing rules rather than an entirely new regulation, aiming to more clearly enforce current standards against “inauthentic” content. The platform also stated that AI-generated content is not outright banned but must be significantly transformed and include value-added human elements to be eligible for monetization.
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